PS18/23: Claims management: how we will regulate claims management companies

Read PS18/23 (PDF)

We had more than 80 responses to the consultation on our proposed rules. The majority of responses supported our proposals with respondents recognising the need to strengthen the regulation of the industry.

Background

CMCs can provide a service to people who might have a valid claim for redress. Our Financial Lives survey indicates that 67% of customers who used a CMC over the last 3 years to make a financial services claim, wouldn’t have done so without the involvement of a CMC. We want CMCs to be trusted providers of high quality, good value services.

What you need to do

The next stage comes in January when CMCs must register for ‘temporary permission’ from us. This will allow them to continue managing claims while we assess their application for full authorisation.

CMCs should start preparing for the change now. The first step is to read and understand the Policy Statement (PS18/23) and what it means for you and your business. This will be vital to being authorised by us. Unless you benefit from an exclusion from the requirement to be authorised, you cannot continue to manage claims after April if you have not obtained a temporary permission or authorisation from us.