The Financial Conduct Authority (FCA) has proposed forcing claims management companies (CMCs) to highlight any free alternatives - such as ombudsman schemes - to customers before using their services.
The FCA will become the regulator of CMCs established or serving customers in England, Wales or Scotland from 1 April 2019. At the same time, the Financial Ombudsman Service will become responsible for resolving disputes about CMCs. The regulator is now in the process of consulting on how to regulate this market. In addition to having CMCs highlight free alternatives, the financial watchdog has also proposed they will have to record all calls with customers and keep the recordings for a minimum of 12 months. It has also proposed that CMCs will have to keep a record of electronic commu...
To continue reading this article...
Join Professional Adviser for free
Signup and gain exclusive members-only insights
- Unlimited access to real-time news, industry insights and market intelligence
- Stay ahead of the curve with spotlights on emerging trends and technologies
- Receive breaking news stories straight to your inbox in the daily newsletters
- Make smart business decisions with the latest developments in regulation, investing retirement and protection
- Members-only access to the editor’s weekly Friday commentary
- Be the first to hear about our events and awards programmes
