Regulation  

Read it Now: CMCs shed permissions & adviser vulnerability revealed

Read it Now: CMCs shed permissions & adviser vulnerability revealed

Hundreds of claims management companies have shed their regulatory permissions, data has revealed.

In this week's front-page exclusive from Financial Adviser, a freedom of information request put to the Financial Conduct Authority revealed that, of the 952 CMCs that sought temporary or full permissions from the regulator in 2019, 280 had either relinquished their permissions or had them revoked by the watchdog.

In the story, senior reporter Rachel Mortimer revealed the Personal Finance Society has been collating allegations of malpractice when it comes to CMCs operating in the financial services sector, and has been passing this information on to the City watchdog.

According to Amy Austin's page 2 exclusive, one in five financial advisers claimed they have felt financial pain as a result of Covid-19 and the ensuing lockdown. 

In a survey from Panacea Adviser, advisers also spoke of the impact that lockdown had had on their own wellbeing. Derek Bradley, chief executive of Panacea Adviser, said this revealed that advisers can also be considered vulnerable - and urged the FCA to factor in the vulnerability experienced by advice firms over this period.

In a similar vein, another FOI put to the FCA by Financial Adviser revealed that only 14 advisers had admitted to the regulator that Covid-19 has had caused serious financial detriment to their businesses. 

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Enjoy the relaxation of some of the lockdown restrictions and have fun this summer, but stay safe and healthy.

Simoney Kyriakou, editor, Financial Adviser