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After years of sustained lobbying by LegalBeagles, the Financial Conduct Authority has finally taken enforcement action against the notorious claims management company Symmetric Systems Ltd T/A Bank Smart.
Thank you to everyone who agreed to share their information with FCA to assist in their investigation.
The FCA have published the following requirements on Bank Smart on their Financial Services Register:
In respect of the requirements we have asked the FCA to clarify the following and we'll update here with the answers when we get them.
After years of sustained lobbying by LegalBeagles, the Financial Conduct Authority has finally taken enforcement action against the notorious claims management company Symmetric Systems Ltd T/A Bank Smart.
Thank you to everyone who agreed to share their information with FCA to assist in their investigation.
The FCA have published the following requirements on Bank Smart on their Financial Services Register:
1. Business requirements
1.1 In relation to the issuance of cancellation and breach of contract invoices by Symmetric to its customers:
a. Symmetric must not issue any further cancellation or breach of contract invoices; and
b. Symmetric must cease pursuing any existing cancellation or breach of contract invoices through, but not limited to, any legal proceedings or debt collection processes.
1.2 In relation to the charging of commission to customers on any PPI claims initiated after 10 July 2018, Symmetric must not collect commission from customers, or invoice customers for commission, at a rate above 20% excluding VAT. Symmetric is to comply with this requirement until the FCA is satisfied that the appropriateness of commission invoices has been reviewed to the FCA’s satisfaction.
Asset requirement
1.3 Symmetric must not, without the prior written consent of the Authority, take any action which has, or may have, the effect of disposing of, withdrawing, transferring, dealing with or diminishing the value of Symmetric's client book and clients. For the avoidance of doubt this includes the disposal, transfer or sale in whole or in part of Symmetric's customer base. This is an asset requirement within the meaning of section 55P(4)(a) of the Act.
Retention and notification requirements
1.4 Symmetric must secure all books and records and preserve all information and systems in relation to claims management activities carried on by it, and must retain these in a form and at a location within the UK, to be notified to the Authority in writing by no later than on, or before, 7 December 2021 such that they (or, so as not to hinder Symmetric's performance of its business activities, true copies of them) can be provided to the Authority, or to a person named by the Authority, promptly on its request.
1.5 By close of business on, or before, 7 December 2021, Symmetric must notify in writing all customers affected by the requirements at sub-paragraphs (1) and (2) of the effect of these requirements. The notifications must be in a form to be agreed in advance with the Authority.
1.6 Once the notifications referred to in sub-paragraph (7) have been made, within 24 hours of those notification, Symmetric must provide to the Authority:
a. Copies of the template notifications sent to all recipients referred to in sub-paragraph (7).
b. A list of all parties to whom notifications have been sent pursuant to sub-paragraph (7).
c. Confirmation that, to the best of its knowledge, Symmetric has sent notifications pursuant to sub-paragraph (7) to all relevant parties.
1.7 An employee holding a senior management role of Symmetric must send to the Authority by email by 12 noon every Friday (or the following business day should the Friday fall on a Bank Holiday), until such time as it is notified otherwise in writing by the Authority, written confirmation that Symmetric is in compliance with the Requirements.
2 The Requirements shall take immediate effect and remain in force unless and until varied or cancelled by the Authority (either on the application of Symmetric or of the Authority's own volition).
1.1 In relation to the issuance of cancellation and breach of contract invoices by Symmetric to its customers:
a. Symmetric must not issue any further cancellation or breach of contract invoices; and
b. Symmetric must cease pursuing any existing cancellation or breach of contract invoices through, but not limited to, any legal proceedings or debt collection processes.
1.2 In relation to the charging of commission to customers on any PPI claims initiated after 10 July 2018, Symmetric must not collect commission from customers, or invoice customers for commission, at a rate above 20% excluding VAT. Symmetric is to comply with this requirement until the FCA is satisfied that the appropriateness of commission invoices has been reviewed to the FCA’s satisfaction.
Asset requirement
1.3 Symmetric must not, without the prior written consent of the Authority, take any action which has, or may have, the effect of disposing of, withdrawing, transferring, dealing with or diminishing the value of Symmetric's client book and clients. For the avoidance of doubt this includes the disposal, transfer or sale in whole or in part of Symmetric's customer base. This is an asset requirement within the meaning of section 55P(4)(a) of the Act.
Retention and notification requirements
1.4 Symmetric must secure all books and records and preserve all information and systems in relation to claims management activities carried on by it, and must retain these in a form and at a location within the UK, to be notified to the Authority in writing by no later than on, or before, 7 December 2021 such that they (or, so as not to hinder Symmetric's performance of its business activities, true copies of them) can be provided to the Authority, or to a person named by the Authority, promptly on its request.
1.5 By close of business on, or before, 7 December 2021, Symmetric must notify in writing all customers affected by the requirements at sub-paragraphs (1) and (2) of the effect of these requirements. The notifications must be in a form to be agreed in advance with the Authority.
1.6 Once the notifications referred to in sub-paragraph (7) have been made, within 24 hours of those notification, Symmetric must provide to the Authority:
a. Copies of the template notifications sent to all recipients referred to in sub-paragraph (7).
b. A list of all parties to whom notifications have been sent pursuant to sub-paragraph (7).
c. Confirmation that, to the best of its knowledge, Symmetric has sent notifications pursuant to sub-paragraph (7) to all relevant parties.
1.7 An employee holding a senior management role of Symmetric must send to the Authority by email by 12 noon every Friday (or the following business day should the Friday fall on a Bank Holiday), until such time as it is notified otherwise in writing by the Authority, written confirmation that Symmetric is in compliance with the Requirements.
2 The Requirements shall take immediate effect and remain in force unless and until varied or cancelled by the Authority (either on the application of Symmetric or of the Authority's own volition).
1 Does requirement 1.1 (b) mean that current legal proceedings in respect of cancellation & breach of contract invoices should be discontinued?
2 With respect to requirement 1.1 (b), what is the current status of complaints currently lodged with the Financial Ombudsman?
2 With respect to requirement 1.1 (b), what is the current status of complaints currently lodged with the Financial Ombudsman?
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