On 6 May 2026, the Financial Conduct Authority (FCA) issued a statement launching a review of the claims management market, following concerns that consumers are being failed by some claims management companies (CMCs) and law firms.
The review will look at the root causes of poor practices across the market, including aggressive marketing, misleading advertising, and unfair exit fees. This is in addition to other concerns such as consumers being signed up without their consent, or by multiple representatives, which may cause confusion or delay compensation.
The FCA will be working closely with the Solicitors Regulation Authority (SRA) and other regulatory partners to conduct its review, examining:
- Whether consumers receive fair value, including competition on price and quality, and whether existing price caps are still fit for purpose.
- Financial incentives, including fee structures, funding, and insurance arrangements, and whether these create conflicts of interest and / or lead to poor conduct and outcomes.
- Whether the full end-to-end consumer journey, including lead generation, marketing and advertising, delivers good consumer outcomes.
- Whether different approaches across different regulatory regimes affect firm behaviour and if some firms are failing to secure the appropriate permissions.
Next steps
The FCA has confirmed that they will publish further information on the review by mid-May.