FCA sets March deadline for CMC permissions
The Financial Conduct Authority has invited claims management to register for temporary permission to continue operating once the sector enters the financial regulator’s remit later this year.
From 1 April 2019, the responsibility for regulating CMCs incorporated in and serving customers in England, Scotland and Wales will be transferred to the FCA from the Claims Management Regulator – a unit of the Ministry of Justice.
In addition to the change of regulator, CMCs incorporated in, and serving only Scottish customers, will need to seek authorisation for the first time, as Scotland was previously outside the remit of the Claims Management Regulator.
In order to continue trading from April, CMCs will have to register for temporary permission before 31 March 2019, and submit an application for full FCA authorisation during one of two periods between April and the end of July.
Firms that fail to register for temporary permission will be unable to perform any regulated claims management activity.
When firms register for temporary permission they will need to confirm which sectors they will be active in and which activities they will be carrying out.
Currently, the Claims Management Regulator issues a single permission to CMCs for activities across six sectors: financial services and products, personal injury, housing disrepair, specified benefit, criminal injury, and employment.
Under the FCA regime, there will be seven different permissions; one for each of the aforementioned sectors and one for lead-generation activities.
The FCA will also require CMCs to provide potential customers with an outline of the fees they charge and the services they provide before any contract is signed, as well as highlighting any free alternatives to their services in marketing material.
CMCs will also have to carry out due diligence to ensure that those leads are obtained legally, and will be prohibited from bringing claims that are fraudulent, has no good, arguable base, or is frivolous or vexatious.
Only users who have a paid subscription or are part of a corporate subscription are able to print or copy content.
To access these options, along with all other subscription benefits, please contact info@postonline.co.uk or view our subscription options here: http://subscriptions.postonline.co.uk/subscribe
You are currently unable to print this content. Please contact info@postonline.co.uk to find out more.
You are currently unable to copy this content. Please contact info@postonline.co.uk to find out more.
Copyright Infopro Digital Limited. All rights reserved.
You may share this content using our article tools. Printing this content is for the sole use of the Authorised User (named subscriber), as outlined in our terms and conditions - https://www.infopro-insight.com/terms-conditions/insight-subscriptions/
If you would like to purchase additional rights please email info@postonline.co.uk
Copyright Infopro Digital Limited. All rights reserved.
You may share this content using our article tools. Copying this content is for the sole use of the Authorised User (named subscriber), as outlined in our terms and conditions - https://www.infopro-insight.com/terms-conditions/insight-subscriptions/
If you would like to purchase additional rights please email info@postonline.co.uk
More on Regulation
How to support insurance customers in vulnerable circumstances
As the Financial Conduct Authority intends to check claims-handling response times, and whether insurers are doing enough to help customers in vulnerable circumstances, Winn Group chief information officer Clint Milnes explains what providers need to do to meet the watchdog’s expectations.
FCA urges insurers to do more for tourists with health issues
A Financial Conduct Authority review of signposting rules for tourists with pre-existing medical conditions has raised concerns about fair value and concluded travel insurers can do more to help tourists with health issues.
Campaigners demand ‘polluters pay’ in letter to insurance CEOs
The campaign groups of the Insure Our Future network have sent a letter to leading fossil fuel insurers, detailing a list of demands relating to sustainability and climate action.
What happens now on the OIC landscape post-Rabot?
After the Supreme Court rejected the insurer-led appeal against its decision on the first two cases of mixed-injury claims involving both whiplash and non-whiplash injuries, the Association of Consumer Support Organisations’ director Matthew Maxwell Scott asks: What's next?
What the future holds for AI regulation
Striking the right balance between regulatory intervention and industry autonomy is crucial to realising the full benefits of artificial intelligence while ensuring ethical, accountable, and inclusive practices within the insurance sector, argues Nutan Rajguru, Verisk UK's head of analytics.
JCG uplift of 22% could mean small track claims limit is increased
The incoming uplift for personal injury claims recommended in the Judicial College Guidelines might need to see an upheaval in limits applied to the Official Injury Claims portal.
Motor insurers warned about political and regulatory intervention
Motor insurers stand on the precipice of a possible explosion in complaints relating to essentials and value policies. And if the industry does not act it should be ready for political and regulatory intervention.
How Solvency UK will impact insurers’ credit quality
Data analysis: Post-Brexit Solvency II reforms look unlikely to make UK insurers more appealing to investors, a Fitch Ratings survey has revealed.
Most read
- Aviva CEO warns home insurance premiums need to go up
- Integration and restructuring costs push RSA to 2023 loss
- Which urges FCA to take action on premium finance following investigation