Our proposals to prevent harm by stopping claims management phoenixing.
Why we are consulting
Claims management phoenixing is when an individual connected with a wound-up FS firm reappears in connection with a claims management company (CMC). And in doing so seeks to benefit from the former FS firm’s poor conduct by carrying on claims management activities against it.
If the claims management regime is used by individuals in failed FS firms to benefit from their own misconduct:
- public confidence in the regulatory system and the integrity of the market will be undermined
- firms will be incentivised to act against the interests of their customers
- CMCs who have not benefited from phoenixing will suffer a competitive disadvantage
Who this applies to
- Current and former FS firms who carry on activities that are protected by the Financial Services Compensation Scheme (FSCS)
- current and prospective CMC firms carrying on claims management activity for claims about financial products and services that are protected by the FSCS
Respond to this consultation
This consultation has now closed. We will publish feedback on responses and issue a Policy Statement once we have reviewed your comments.