FCA: Regulation of claims management companies to cost them £16m

CMCs to pay £7.1m by 2019/20

Tom Ellis
clock • 1 min read

The Financial Conduct Authority (FCA) has said it expects to spend £16.8m setting up and delivering the regulation of claims management companies (CMCs), which will be fully funded by those firms.

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 said it intends to recover £7.1m of the expected costs through periodic fees in 2019/20 with the remaining balance spread over the years following. CMCs will also have to pay application fees - those with turnover up to £1m will pay £1,200 while those with a turnover of more than £1m will pay £10,000. In June the FCA proposed forcing claims m...

To continue reading this article...

Join Professional Adviser for free

  • 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

Join

 

Already a Professional Adviser member?

Login

More on Regulation

FCA capital redress expectations: The road ahead for advisers

FCA capital redress expectations: The road ahead for advisers

What’s expected of advisers and the timelines to work to

Linda Gibson
clock 29 April 2024 • 4 min read
FCA dismisses British Steel complaints after lengthy investigation

FCA dismisses British Steel complaints after lengthy investigation

Regulator acknowledges decision will be ‘disappointing’ for complainants

Jenna Brown
clock 22 April 2024 • 2 min read
Agile IT needed as rapid regulation change becomes the norm

Agile IT needed as rapid regulation change becomes the norm

'Gone are the lengthy consultation and rule-setting cycles that often took several years'

Paul Muir
clock 15 April 2024 • 6 min read