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Claims Management Services: Regulation

Question for Treasury

UIN HL14982, tabled on 1 April 2019

To ask Her Majesty's Government what assessment they have made of the impact of sector regulation on closures of financial claims management firms; and of the impact that could have on consumers.

Answered on

15 April 2019

The government conducted an impact assessment for the transfer of the responsibility of Claims Management Companies (CMCs) regulation from the Claims Management Regulator (CMR) to the Financial Conduct Authority (FCA), and the FCA have also assessed the costs to industry.

The number of CMCs has declined for several years, and if this trend continues, compliance costs for the industry will likely reduce. Remaining CMCs will now be required to meet FCA rules and higher standards of conduct. This will increase trust and confidence in the sector, which will benefit consumers and CMCs.

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