FCA Warns Claims Management Cos. On Rule Breaches

Law360, London (June 5, 2019, 7:14 PM BST) -- The Financial Conduct Authority has written to claims management companies reminding them of their regulatory obligations after some were accused of poor behavior and rule breaches, saying they could have their temporary permission to operate revoked or be placed under restrictions.

The City watchdog issued the warning on Tuesday, saying it had noted an increase in “problem cases” in the handling of complaints from customers. CMCs, which work on commission, specialize in lucrative claims on behalf of consumers such as personal injury and missold payment protection insurance.

The FCA — which took over regulating the sector in April — said there had been...

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