Information relating to claims management company (CMC) authorisation

Reference Case Number: FOI8531

Freedom of Information: Right to know request:

I am writing to request information regarding the FCA's register and claims management company (CMC) authorisation. Please could you provide the following information:

How many firms hold advice permissions and CMC permissions at the same time currently?
How many CMCs are now operating in the market with full regulatory authorisation
How many firms are still in the application process?
I am also requesting, assuming this does not jeopardise my above requests, information as to the number of CMCs that have been authorised by the FCA and later had permissions removed over the last three years, with a breakdown for each year:
- April 2018 - April 2019
- April 2019 - April 2020
- April 2020 - April 2021
- April 2021 - June 2021

How many CMC firms have defaulted or had CMC authorisation / permissions cancelled in the following years:
- April 2018 - April 2019
- April 2019 - April 2020
- April 2020 - April 2021April 2021 - June 2021

FCA response:

1. How many firms hold advice permissions and CMC permissions at the same time currently?

On 2 September 2021, 54 FCA authorised firms held Advising on investments (except on Pension Transfers and Pension Opt Outs) permission, as well as one of the following claims management permissions:

Seeking out, referrals and identification of claims or potential claims
Advice, investigation or representation in relation to a fin serv product claim
Advice, investigation or representation in relation to a personal injury claim
Advice, investigation or representation in relation to a criminal injury claim
Advice, investigation or representation in relation to an employment claim
Advice, investigation or representation in relation to a claim spec. benefit
Advice, investigation or representation in relation to a house disrepair claim
Temporary permission to carry out claims management activities

Please note that by “financial advice firms”, we mean FCA authorised firms providing Retail Investment advice, i.e. firms with one or more of the following permissions for retail customers:

Advising on investments (except on Pension Transfers and Pension Opt Outs)
Advising on Pension Transfers and Pension Opt Outs
Advising on P2P agreements

2. How many CMCs are now operating in the market with full regulatory authorisation?

On 2 September 2021, 652 firms had full authorisation for claims management activity, including at least one of the following permissions. This does not mean that the firm’s main business is claims management, as some of the firms may also have other permissions.

Seeking out, referrals and identification of claims or potential claims
Advice, investigation or representation in relation to a fin. serv. product claim
Advice, investigation or representation in relation to a personal injury claim
Advice, investigation or representation in relation to a criminal injury claim
Advice, investigation or representation in relation to an employment claim
Advice, investigation or representation in relation to a claim spec. benefit
Advice, investigation or representation in relation to a house disrepair claim

3. How many firms are still in the application process?

As at 2 September 2021, 63 applications for CMC permissions are being assessed, 27 of these applicants have temporary permission to provide CMC services.

4. I am also requesting, assuming this does not jeopardise my above requests, information as to the number of CMCs that have been authorised by the FCA and later had permissions removed over the last three years, with a breakdown for each year?

For the period 1 April 2019 to 30 June 2021, 28 firms had their applications refused or rejected, broken down as follows:

1 April 2019–1 April 2020 - 1
1 April 2020–1 April 2021 - 22
1 April 2021–30 June 2021 – 5

5. How many CMC firms have defaulted or had CMC authorisation / permissions cancelled in the following years?

April 2018-April 2019
April 2019-April 2020
April 2020-April 2021
April 2021-June 2021

No firms have had their permissions cancelled – in total 26 applications for CMC permissions have been refused (however only 19 have been published, as of 2 September 2021). Some firms have applied to cancel their claims management permissions.

Date of Release: 28/10/2021

Information relating to claims management company (CMC) authorisation - October 2021