Claims management companies (CMCs) are to be subject to stricter rules and regulations now the sector's time under the FCA's regulatory umbrella has begun today (1 April).
More than 900 CMCs have registered for temporary permissions - meaning firms are expected to comply with Financial Conduct Authority (FCA) standards and could face action if they do not - to continue operating while they go through the regulator's authorisation process. Once authorised, the FCA could use its powers to require firms to change their business practices, such as ensuring communications with customers are clear, fair and not misleading. The regulator will also be able to impose a financial penalty or refuse to authorise a firm if it finds there has been serious misconduct. ...
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