On 5 January 2023, the FCA published a portfolio letter addressed to claims management companies (CMCs).

The portfolio letter follows a previous portfolio letter issued in October 2020 and provides an update on the FCA’s view of the drivers of harm and risks that CMCs pose to their consumers or the markets in which they operate. The FCA also sets out its expectations of CMCs, including how they should be mitigating against the risks and describes its supervisory strategy and programme of work intended to ensure that CMCs are meeting expectations, and harms are being remedied and/or mitigated. The boards of CMCs are expected to consider the areas of concern and expectations in the portfolio letter and take action where necessary.