FCA aims to quell claims company concerns with phoenixing rule revamp

CEO Rathi responds to the Financial Services Panel’s annual report

Ayesha Venkataraman
clock • 2 min read

Claims management companies (CMCs) will need to provide information about any relevant connections to failed firms that they may have going back six years, Financial Conduct Authority (FCA) chief executive Nikhil Rathi has confirmed.

This was Rathi's response to the Financial Services Panel's concerns that the regulator's proposed ban on individuals from failed financial services ‘phoenixing' is not retrospective. "We have defined what we mean by relevant connections in our rules," he said. "Therefore, any CMCs with pre-existing relevant connections will be prevented from managing new claims associated with those connections." He added: "Having this information will help us to supervise and enforce the rules and applying the ban to new contracts will ensure customers have appropriate protection in the long term." ...

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