On 1 April 2019 we will become the regulator of Claims Management Companies (CMCs) that are set up or serving customers in England, Wales and Scotland.

We are currently consulting on how we propose to regulate CMCs. We will consider all the feedback we get and publish final rules so that CMCs have time to prepare for the new standards.

Read the consultation and provide feedback by 3 August 2018.

Being FCA Regulated

All firms applying for FCA authorisation must be able to demonstrate that they can meet, and will continue to meet, a set of minimum requirements. These are called our Threshold Conditions. They will also need to comply with the rules in our Handbook.

Find out more about Threshold Conditions in our Handbook.

All CMCs who want to carry on regulated claims management activity will need to be authorised by us. CMCs that are currently authorised by the Claims Management Regulator will not be automatically transferred to the FCA. So they will have to complete a registration form telling us they want to continue to carry on regulated claims management activity and pay the relevant fees. CMCs will have to send us this form and pay their fees by 31 March 2019.

Firms we will regulate

The CMCs we will regulate include: sole traders, partnerships and other organisations such as incorporated companies. For more information and to find out if your firm needs to be regulated by us, please see the list of activities and sectors in our Consultation Paper.

 Firms that don’t carry out financial services, are already authorised to carry out legal activities and are regulated by another authority, such as the Solicitors Regulation Authority, don’t need to apply to us. They will continue to be regulated by their current regulator.

Getting authorised

If you are currently authorised by the Claims Management Regulator and want to continue to carry on providing claims management services under the FCA you will have to complete a registration form and pay the relevant fee. We will then issue you with a Temporary Permission. CMCs that are not currently regulated but will become regulated by us, such as firms in Scotland, will also have to register for a Temporary Permission if they want to carry on offering claims management services.

CMCs that do not send us a completed registration form and pay their fees by 31 March 2019 will not be able to carry on regulated activity after that date.

There will be two time slots for applying for full FCA authorisation. When you have registered for Temporary Permission, we will tell you whether you need to submit your application for full authorisation in Window 1 (1 April – 31 May 2019), or Window 2 (1 June – 31 July 2019). The window will depend on what permissions you have applied for and, for some CMCs, whether you are currently regulated.

If your firm wants to start providing regulated claims management activity you will need to apply for authorisation. You can either apply to the Claims Management Regulator now and transfer to us, or apply directly to us for full authorisation from 1 April 2019. If you apply to us, we will not be able to give you a Temporary Permission but you will be able to apply for full authorisation at any time.

Timeline

Date

Activity

2015

The Government commissioned an independent review to examine the problems.

March 2016

Carol Brady published the final report of her independent review of claims management regulation.

23 April 2018

The Treasury opened a consultation on claims management secondary regulations.

10 May 2018

Financial Claims and Guidance Act received Royal Assent.

5 June 2018

Rules consultation published.

3 August 2018

Rules consultation closes.

Mid-2018

Fee cap for PPI claims.

Q3 2018

Fees consultation.

Q3 2018

SM&CR consultation for CMCs.

Q1 2019

CMCs will have to complete their form for Temporary Permission and pay the fees by the end of Q1 2019.

1 April 2019

Responsibility for the regulation of CMCs transfers to FCA.

CMCs need to comply with the FCA Handbook.

1 April – 31 May

Application period for financial services firms and currently unregulated CMCs.

1 June -31 July

Application period for all other CMCs.

29 August 2019

PPI deadline.

Fees

We are funded by the firms we regulate through fees, and we aim to cover our costs in a way that is as fair and efficient as possible. We consult on our fees each year.

Like all regulated firms, CMCs will have to pay an authorisation fee and then annual fees for every year they are authorised.

The fee will depend on the size of the firm’s business and the type of authorisation it has. Later this year we will consult on the fees that CMCs will have to pay for 2019/20.

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