CP18/23: Claims management companies: recovering the costs of regulation and the Financial Ombudsman Service

Read CP18/23[1]

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.

Who this applies to

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:

• CMCs established or serving customers in England, Scotland and Wales, including those dealing with claims under section 75 of the Consumer Credit Act 1974
• trade bodies representing CMCs

What you need to do

Please send us your comments by 22 October 2018.

Online response form

You can also:

• email your responses to [email protected]; or
• write to: David Cheesman, Fees Policy, Financial Conduct Authority, 12 Endeavour Square London E20 1JN