On 1 April 2019, the FCA began regulating claims management companies (CMCs) in England, Scotland and Wales. The FCA reports that more than 900 CMCs have registered for temporary permission to continue operating while they go through the FCA authorisation process.
The following firms were required to register with the FCA for temporary permission:
- firms that were authorised to carry on claims management activity under the Compensation Act 2006;
- firms that would have been required to be authorised under the above Act if it had been extended to Scotland; and
- firms that are performing CMC activities relating to section 75 of the Consumer Credit Act 1974 that will be regulated from 1 April 2019.
The FCA has provided further information as regards the authorisation process for CMCs with temporary permission.