Following a consultation earlier this year, the FCA has published a policy statement setting out the new rules and fees that will apply to claims management companies (CMCs) from April 2019.
From 1 April 2019, the FCA will become the regulator of CMCs that are established or serve clients in England, Wales and Scotland. FOS will become responsible for resolving customer disputes about CMCs.
The new rules will ensure that CMCs-
- record and retain customer telephone calls for a year after their final contact with a customer;
- are transparent about their estimated fees before the customer signs on the dotted line, and
- notify customers of free statutory ombudsmen or compensation scheme.
In addition to the application of the relevant parts of the FCA Handbook, the FCA will introduce a new Claims Management: Conduct of Business sourcebook (CMCOB).
In order to carry on regulated claims management activities, all CMCs will need to apply for temporary permission between 1 January and 31 March 2019.