This Note describes the regulatory framework which applies to claims management companies.Jump to full report >>
Claims management companies (CMCs) are currently regulated under the Compensation Act 2006 by the Ministry of Justice. There are about 3,000 such companies in the UK, most of which operate in the personal injury and financial services sectors. Consumer complaints are concentrated in the financial sevices sector. The note looks at the specific rules which apply to unsolicited text messages.
The Financial Guidance and Claims Act 2018 transfers regulation of CMCs to the Financial Conduct Authority from 2019. The FCA published a consultation paper on how it proposed to regulate the sector in June 2018.