FCA To Review Claims Management Practices

The Financial Conduct Authority (FCA) has announced a formal review of claims management practices, following concerns that consumers are being failed by some claims management companies (CMCs). The review is being conducted in collaboration with the Solicitors Regulation Authority (SRA) and other regulatory partners.

Context to the Review

While the FCA has recognised that CMCs and other ‘professional representatives’ can play a legitimate role in helping consumers secure compensation, it has grown increasingly worried that poor practices across the CMC industry are leading to poor customer outcomes. This reflects similar concerns that have been building within the regulated firms who have to handle complaints from CMCs, often in high volumes.