Learn more about how to register for temporary permission before the deadline of 31 March 2019.
Claims management companies are currently regulated by the Claims Management Regulator, but responsibility for regulation will transfer to the FCA on 1 April 2019.
Registering for temporary permission
You will have to register for claims management ‘temporary permission’ (TP) by 31 March 2019 if you want to continue trading after 1 April 2019. TP allows your firm to continue trading using a single CMC permission while you go through the application process for FCA authorisation.
When registering for TP, firms will need to confirm which activities they will be carrying on (for example, lead generation – or advising, investigating and representing) and in which sectors (for example, financial services and products, housing disrepair or holding client money). This will enable the FCA to confirm when your firm will have to submit its application for full authorisation.
We will not be assessing firms at the point of registration for their suitability to carry out regulated activities.
What happens once firms register for temporary permission
Once firms have registered for TP, they will be expected to comply with FCA standards from 1 April 2019. Your firm may face action if you do not. This could include opening an enforcement investigation and ultimately imposing an enforcement sanction (such as a financial penalty). And, while firms with TP will generally be able to do any regulated activity in any of the 6 sectors we will be regulating, if we have specific concerns about that firm, we may limit what the firm is allowed to do – for example, tell it to stop holding client money, or stop handling claims in a certain sector. We can take action like this against firms for conduct that took place before the transfer to the FCA, as well as after.
Which firms need to register for temporary permission
From January to the end of March 2019, the following firms will need to register with us for temporary permission:
- Firms that were authorised to carry on claims management activity under the Compensation Act 2006.
- Firms that would have been required to be authorised under the Act 2006 if it had extended to Scotland.
- Firms that are performing CMC activities relating to S.75 of the Consumer Credit Act 1974 that will be regulated from 1 April 2019.
Before registering you will need to register for our application system, Connect.
See how to register for Connect.
Once you have registered for Connect, you will need to complete our temporary permission form. This can be found in Connect. Read more about how to register for temporary permission.
You will be asked to pay your fee within 14 days of receiving our invoice - your annual (periodic) fee. Your firm will have to comply with FCA standards from 1 April 2019, including 'threshold conditions' and conduct rules.
Read about FCA standards for CMCs.
You will have to register for TP by 31 March 2019 or you will have to stop regulated claims management activities. If you continue carrying on regulated claims management activity without authorisation you will face potential enforcement action through the civil or criminal courts for unlawful activity.
If you have any queries on registering for temporary permission, call us on 0800 029 3678.