A UK Government consultation has opened on draft secondary regulations that will enable the transfer of claims management regulation to the Financial Conduct Authority, with a focus on the scope of regulation and the FCA’s consultation requirements.
The Financial Guidance and Claims Bill, introduced in Parliament on 22 June 2017, aims to enable this transfer by making claims management activity a regulated activity under s 22 of the Financial Services and Markets Act 2000 and a controlled activity under s 21 (restrictions on financial promotion). It also extends FCA regulation of claims management companies to Scotland, where CMCs are currently unregulated. If the bill is passed, secondary legislation will be required to define the scope of regulation further.
These draft regulations will form part of the final statutory instrument, which will also include the temporary permissions regime, transitional provisions to put the framework for the transfer in place, and consequential provisions.
Comments are also sought in the consultation on the design of a temporary permissions regime to help firms adapt to the FCA regime.
Click here to access the consultation. The deadsline for responses is 1 June 2018.