Financial Conduct Authority  

FCA pushes ahead with new firm fee hike

CMC fees

In the initial consultation, the regulator also said it was looking to introduce a £2,500 fee for claims management companies that only apply for permission to seek out people who may want to make a claim.

The application fees for CMCs were based on income and the standard charge was £10,000, but firms estimating income under £1m paid a lower fee of £1,200.

But the FCA has now removed the income-based fee and introduced a charge of £2,500 for lead generators instead.

It said some firms engaged only in marketing activities and passed any prospective leads to other CMCs or solicitors and the earlier proposed lead generator charge put 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.

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