CMCs Frozen Out By Cold Calling Restrictions

The Financial Guidance and Claims Act received Royal Assent last week, with several changes made to the regulation of Claims Management Companies (CMC).

The Act now limits the circumstances in which a CMC may contact an individual, albeit an outright ban on cold calling by CMCs has not been introduced.

Regulations of CMCs

The regulation of CMCs, or those engaged in the carrying out of claims management services, has been transferred to the Financial Conduct Authority (FCA).

The FCA has the ability to place fee caps on the costs of a service provided by a CMC under their regulatory remit, and has wider ranging powers to control the actions of CMCs. It remains to be seen what such a cap will entail.