FCA introduces CMCs fee cap

‘Changes could save consumers £9.6m a year’

Julia Bahr
clock • 2 min read

The Financial Conduct Authority (FCA) has launched new rules that will apply to claims management companies (CMCs) to prevent them from charging excessive fees to consumers owed compensation from financial services firms.

Rules apply to claims relating to new contracts entered into from 1 March 2022 and generally exclude pre-existing contracts already in place, according to the watchdog. As of today, the maximum consumers can be charged will depend on how much redress they are due, it said. "For example, if the redress amount is below £1,500 consumers can only be charged a maximum of 30% of their claim, or £420, whichever is lower. The changes are expected to save consumers £9.6m a year and thousands of pounds on some individual claims." The FCA added that the cap will apply to most claims where a c...

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 chief: No allegations of Budget leak market abuse so far

FCA chief: No allegations of Budget leak market abuse so far

Told MPs on the Treasury Committee the leak caused serious concern

Alex Sebastian
clock 16 December 2025 • 3 min read
FCA's non-financial misconduct rules 'opaque' over social media activity

FCA's non-financial misconduct rules 'opaque' over social media activity

Lack of definitions and case studies

Cristian Angeloni
clock 16 December 2025 • 2 min read
2025: Reflecting on a 'sustained wave' of regulation

2025: Reflecting on a 'sustained wave' of regulation

The FCA has issued 34 consultation papers this year

Paul Bruns & Sandy McGregor
clock 16 December 2025 • 4 min read