Written question asked by Lord Taylor of Warwick (Non-affiliated) on Monday, 1 April 2019, in the House of Lords. It was due for an answer on Monday, 15 April 2019. It was answered by Lord Bates (Conservative) on Monday, 15 April 2019 on behalf of the Treasury.

Claims Management Services: Regulation

Question: To ask Her Majesty's Government what assessment they have made of the impact of sector regulation on closures of financial claims management firms; and of the impact that could have on consumers.

Answer

The government conducted an impact assessment for the transfer of the responsibility of Claims Management Companies (CMCs) regulation from the Claims Management Regulator (CMR) to the Financial Conduct Authority (FCA), and the FCA have also assessed the costs to industry.

The number of CMCs has declined for several years, and if this trend continues, compliance costs for the industry will likely reduce. Remaining CMCs will now be required to meet FCA rules and higher standards of conduct. This will increase trust and confidence in the sector, which will benefit consumers and CMCs.

Secondary information

Type: Written question
Reference: HL14982
Session: 2017-19
Subjects: Closures Regulation Claims management services
Contains statistics: Yes
Link: View this Written question on www.parliament.uk

Claims Management Services: Regulation

Secondary information

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