The Financial Conduct Authority (FCA) are consulting on new rules for claims management companies to raise standards of conduct. They will become the regulator of claims management companies (CMCs) on 1 April 2019.
The FCA Senior Managers and Certification Regime (SM&CR) will apply to authorised CMCs from December 2019 – firms should read the Consultation Paper for further information about when the SM&CR may apply to them and what action they will need to take.
Firms’ culture and governance is a continuing priority for the financial regulator. The aim of the SM&CR is to reduce harm to consumers and help strengthen the integrity of the market by making individuals more accountable for their conduct. Nearly all employees of CMCs will have to abide by Conduct Rules and some senior managers will have to be approved.
The FCA want CMCs to be trusted providers of high quality, good value services that can truly help customers. A key element of the regulators approach will be ensuring consumers are protected and treated fairly.
It is important that CMCs understand these proposals and what they mean for them. They should read the consultation and sign up to email updates to receive details of the events the FCA are considering holding for them in the autumn. CMCs who are interested in attending an event should sign up online.
Please send any feedback to the FCA before 6 December.
Later this year, the regulator will give CMCs more information about the next steps they will take to transfer them from being regulated by the Claims Management Regulator to the FCA. You can read further information about the transfer here.