Financial Conduct Authority  

FCA to start supervisory crackdown on CMCs

The authorisation process for CMCs started in the beginning of April, and will occur in two batches.

Firms which conduct business on financial products and services claims need to apply before May 31, while lead generators and CMCs working on personal injury and housing disrepair claims must apply between June 1 and July 31.

Mr Davidson said the FCA’s department in charge of this process has currently 24 staff, but the number of workers will grow to 70 "at its peak".

The FCA will determine authorisations within six months if the application was completed, or within 12 months for a partially completed submission.

Brian Hill, managing director & financial planner at Jones Hill, said that CMCs exist to deal with the administration of a claim. 

He added: "I would suggest that if the target of the complaint provided simpler and more robust means of complaints being dealt with in the first place, then there would be no need for the existence of many CMCs and more recompense would go to consumers. 

"In the meantime, the FCA should robustly ensure no CMC becomes yet another dodgy horse that has bolted before the regulatory door is locked."