This paper sets out our proposals for recovering the costs of regulating claims management companies (CMCs) when applications open for temporary permissions on 1 January 2019.
On 1 April 2019 we will become the regulator of claims management companies (CMCs) established or serving customers, in England, Wales and Scotland. Firms that wish to continue trading from 1 April 2019 will have to register for temporary permission (TP) between 1 January – 31 March 2019. They will subsequently be able to apply for full authorisation.
This consultation paper (CP) explains how we propose to set the fees that will recover our costs for setting up the new regulatory regime and for supervising CMCs going forward.
Responsibility for considering complaints about CMCs will also transfer from the Legal Ombudsman (LeO) to the Financial Ombudsman Service, so we also set out proposals for recovering the associated transfer costs and the Financial Ombudsman Service’s ongoing costs. We do not propose to extend Financial Services Compensation Scheme cover to customers of CMCs at present, but we may review the position in the future if there is evidence of significant consumer harm.
These proposals will be of interest to all existing CMCs intending to continue trading from 1 April 2019 onwards, and to all businesses considering establishing CMCs in the future. This includes:
Please send us your comments by 22 October 2018.
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