According to the FCA, these firms act as lead generators and engage only in marketing activities and pass any prospective leads to other CMCs or solicitors.
The new lead generator charge puts these “lower risk” CMCs in the same bracket as financial advisers and mortgage brokers.
The regulator clarified that the new fee will not affect lead generators who also seek the higher risk permission of ‘advice, investigation or representation.’
These firms will now pay what the FCA calls a category six fee of £10,000, regardless of their income.
The City watchdog is also removing the lower fee of £1,200 for CMCs with incomes up to £1m.
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