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 and FOS joint statement: Targeted support complaints are 'different'

FCA and FOS joint statement: Targeted support complaints are 'different'

Targeted support is a one-off service and does not involve ongoing suitability assessments

Jenna Brown
clock 11 December 2025 • 2 min read
The confidence gap: Why isn't wealth translating into investment

The confidence gap: Why isn't wealth translating into investment

'We can all help turn uncertainty into confidence, and savers into stakeholders'

Jo Kite
clock 11 December 2025 • 3 min read
Advice for all: Why targeted support is a once-in-a-generation opportunity

Advice for all: Why targeted support is a once-in-a-generation opportunity

'Mind the gap, and turn targeted support into enduring financial confidence'

Martin Taylor
clock 10 December 2025 • 4 min read