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...

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