Claims management companies (CMCs) will have to be authorised afresh by the Financial Conduct Authority (FCA) before they can operate under the new regime, it has emerged.

Legislation is currently going through Parliament to enable the FCA to take over the job of regulating CMCs from the Ministry of Justice (MoJ) from either 2018 or 2019.

Speaking at last week’s PI Futures conference, Kevin Rousell, the Claims Management Regulator based at the MoJ, said there would be no ‘grandfathering’ of CMCs from the old into the new regime, although there was likely to be a transition period where they could continue to operate before re-authorisation took place.

He said the FCA would set the bar higher when authorising CMCs than it had been set 10 years ago when the MoJ started regulating them.

 

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