CompaniesMar 16 2016

FCA regulation of ambulance chasers was overdue

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FCA regulation of ambulance chasers was overdue

The news that the government is making the Financial Conduct Authority responsible for regulating ambulance chasers has been welcomed by advisers.

Claims management companies (CMCs) have historically been regulated by the Claims Management Regulation Unit under the Ministry of Justice.

According to the Budget report the date for the transfer of regulation to the the FCA will be announced in due course.

Dan Farrow, director at Chelmsford-based SBN Wealth Management, said: “I unfortunately know through experience that many claims management companies have no respect for the parties involved, in say an accident, and will use every trick in the book to earn a fee.

“Information that I know only Aviva had from a recent car accident I was involved in got sold to a claims management company, who continue to pester me now.

“The whole industry needs to either be eradicated or become accountable and adhere to an ethical and non-intrusive way of working.

Paul Lindfield, director of wealth management at Manchester-based Sedulo Wealth Management, said: “Everybody pretty much agrees with that. We all get inundated with nuisance texts and calls.

“Obviously these companies are switching their attention to financial services with other industries dying out. They need to be policed more if they are coming into this market to make a quick buck.”

Claire Walsh, chartered financial planner at Aspect 8, said: “It is a good thing that they are trying to curtail it.”

Scott Gallacher, a chartered financial planner at Leicester-based Rowley Turton, said generally claims management companies “don’t have a great track record as a whole so it is long overdue to regulate them properly”.

“There’s been various issues with these I think they should be strongly regulated. I don’t think generally they are a good idea - they are doing a service which isn’t needed..

He added ambulance chaser’s charges are excessive and if you have people queueing up to become CMCs it was an indication the money they are making is too much.

ruth.gillbe@ft.com