As part of the proposed process of transferring the regulation of Claims Management Companies to the FCA, HM Treasury is consulting on draft regulations that will form part of a final statutory instrument creating a new framework of regulation for Claims Management Companies (CMCs).
The draft regulations set out the proposed permissions that CMCs will need to apply for, as appropriate to their business:
- seeking out, referring and identifying claims
- advising, investigating and representing in relation to personal injury
- advising, investigating and representing in relation to financial services and products
- advising, investigating and representing in relation to employment
- advising, investigating and representing in relation to criminal injuries
- advising, investigating and representing in relation to industrial injuries disablement benefit
- advising, investigating and representing in relation to housing disrepair
Questions posed in the consultation include whether there are any other sectors that should be included in the above list.
The consultation also notes the government’s policy intention that section 75 Consumer Credit Act claims should also come within the scope of the claims management regime; the draft regulations may be amended accordingly, but the consultation invites views on this intention.
Other matters covered by the consultation include:
- exemptions
- territorial scope
- temporary permissions regime
- applications for full permission
The consultation is open for responses until 1 June 2018.