SRA calls for views on restricting fees in financial mis-selling claims

The Solicitors Regulation Authority (SRA) has invited firms to submit their views on fee restrictions for financial product and services mis-selling compensation cases. 

The request comes pursuant to its obligations under the Financial Guidance and Claims Act 2018 to ensure rules prevent excessive fees being charged for claims management activities connected to financial products or services.

The SRA has launched a discussion paper setting out its approach. It considers whether its new rules should be closely aligned to the proposals of the Financial Conduct Authority (FCA), which regulates the vast majority of the sector.

SRA chief executive, Paul Philip, said: ‘This is an important piece of work for consumers and the firms we regulate. 

“Fees have to be set at a level that means the cost is affordable for people seeking redress, while ensuring that this is still a viable area of work for firms that provide this service for those who need it. So, although the number of law firms involved may be small, the impacts for consumers could be significant.

“I would urge firms currently providing claims management in this area, and others who may be thinking about doing so, to read the discussion paper and let us know what you think”.

A webinar explaining the SRA’s thinking will be held on Wednesday 4 August (12:30pm – 1:10pm). Places can be booked here: SRA’s events page.

Questions may also be submitted via this page. 

Views on the discussion paper are invited by 29 September.