REGULATION OF CLAIMS MANAGEMENT IS CHANGING - ARE YOU PREPARED FOR THE FINANCIAL CLAIMS & GUIDANCE ACT 2018?
The Financial Claims and Guidance Act, which came into force on 10 May 2018 will transfer regulation of Claims Management Companies (CMC’s) to the Financial Conduct Authority (FCA) when CMC’s will be subject to FCA regulation, including the FCA’s authorised person’s regime.
HOW WILL THIS AFFECT YOUR BUSINESS?
The FCA’s regulatory regime is more developed, better resourced and more intensive than the current Ministry of Justice regime and will require a new way of thinking in terms of operation and structural organisation.
CMC’s will be required to apply for interim permission between 1st January 2019 to 31st March 2019 to continue to carry out claims management services prior to full authorisation by the FCA. Just as when the FCA took over credit licensing, it is anticipated many CMC’s will find it hard to satisfy the FCA of their suitability to remain authorised. The application process will involve greater scrutiny of the business including its structure, its processes and procedures, its financial stability and its key personnel.
While some businesses will fail to meet the new stricter FCA regime, other forward-thinking businesses prepared for transition should experience opportunities for growth as competitors fail, freeing up the market to those retaining authorisation.
HOW CAN YOU PREPARE TO MEET THE NEW CHALLENGE?
Miller Beare Compliance Consultants can guide you through this difficult and complex process. Its operational team draws from many years of knowledge and experience derived from working with the Claims Management Regulator and compliance consultancy. Our team of hand-picked experts have played significant roles in designing and supporting the application process and authorisation of new claims management businesses as well as investigative and enforcement functions.
We can offer a full and detailed forensic audit of your claims management provisions culminating in a detailed report setting out your strengths, weaknesses and corrective actions you should take to prepare for FCA regulation. As you move through the interim permissions stage and on to full FCA authorisation we can provide further support with bespoke solutions to meet your business’ regulatory needs.
The Ministry of Justice will continue to supervise claims management companies for approximately another 7 months. They have a business as usual stance and where its audits uncover evidence of poor treatment of customers, data protection issues, concerns over marketing practices, issues with the competence of a company’s management, or any other area of concern, then it can still decide to issue a fine, impose conditions on a company’s authorisation, or take the ultimate step of cancelling a company’s authorisation.
To learn more about how we can help your business, call us now on 01623 557829 or email firstname.lastname@example.org for a free no obligation consultation to discuss your requirements.