FCA Possesses Power to Cap Personal Injury CMC Fees

In edition 229 of BC Disease News (here), we last discussed the Government’s ban on cold calling by CMCs without ‘prior consent’. This has since been introduced through the Financial Guidance and Claims Act 2018.

Regulation of claims management companies (CMCs) will be transferred from the Ministry of Justice’s Claims Management Regulator to the Financial Conduct Authority (FCA), in April of 2019.

This week, it has been announced that the FCA will have the power to cap the fees of personal injury CMCs, even though the treasury has stated that the Government ‘does not currently believe there is a need for a cap on fees in relation to personal injuries’.[i]

 

[i] Nick Hilborne, ‘FCA will have power to cap personal injury CMCs’ fees’ (31 July 2018 Legal Futures) <https://www.legalfutures.co.uk/latest-news/fca-will-have-power-to-cap-personal-injury-cmcs-fees> accessed 1 August 2018.