PS22/6: Preventing claims management phoenixing by financial services firms

Read PS22/6 (PDF)[1]

What we are changing

The new rules prohibit claims management companies (CMCs) from carrying out regulated claims management activity in certain circumstances on claims and potential claims to the Financial Services Compensation Scheme (FSCS)[2], where the CMCs have relevant connections to the claims. They also require CMCs to tell us of connections they have to financial services (FS) firms that could be relevant to this. In this Policy Statement (PS) we summarise the feedback we received to CP21/14[3], our response, and what we have decided to do.

Who this applies to

• current and former FS firms who carry on activities that are protected by the FSCS
• current and prospective CMC firms carrying on FCA-regulated claims management activity for claims about financial products and services that are protected by the FSCS

Next steps

The legal instrument accompanying this PS contains final rules and guidance. The rules and guidance will come into force on 7 July 2022. 

If your firm is affected by these changes, you need to ensure you are able to comply by that date.

To help firms comply with the first notification requirement we will send a request by email for the required information.