11Mar

In addition to the half-hour long webinar, the Financial Conduct Authority (FCA) has produced three more shorter video guides to assist claims management companies (CMCs) with the forthcoming switch to FCA regulation.

In the first of these, Garry Hunter, the newly appointed Head of CMC Regulation at the FCA, explains what CMCs need to do to prepare for this change:

Mr Hunter said that the main aim of the switch to FCA regulation is to drive up standards in an industry where the practices of a few companies have given the entire sector a bad name.

Another video lists five things CMCs need to know about the FCA regime:

  • The FCA will regulate CMCs not just in England and Wales, but also in Scotland, where there has not previously been any formal regulation of these companies
  • The rules that CMCs will need to follow have already been published in a Policy Statement, which is available on the FCA site
  • The deadline for temporary registration is March 31 for all claims companies
  • Companies operating under the Ministry of Justice regime will not be automatically transferred to the FCA – they must register for temporary permission
  • Temporary permission applications are done via the FCA’s Connect system

Finally, a video explains how to register for temporary permission. CMCs will need the following information to hand when they complete this:

  • Their Firm Reference Number or Claims Management Regulator number
  • The company’s trading names
  • The company’s annual turnover

On logging in to Connect, CMCs must:

  • Read the introductory information
  • Enter the requested information about their company, checking carefully that what is entered is accurate
  • Complete the temporary permission supplement
  • Read the declaration and tick it to confirm they understand it
  • Click to submit the registration

The information shown in this article was correct at the time of publication. Articles are not routinely reviewed and as such are not updated. Please be aware the facts, circumstances or legal position may change after publication of the article