On 26 October 2020, the FCA issued its warning to CMC firms regarding their steps taken to fully investigate the merits of each potential claim before pursuing it.
The FCA letter notes that a failure to collect relevant information before presenting claims to third parties has led to the submission of 'spurious claims, slower processing, and poor outcomes'.
The letter provides an insight into the FCA’s main concerns regarding the claims management sector, which it assumed responsibility for regulating in April 2019.
What it means for you
The regulator states that CMCs have demonstrated a ‘poor understanding of, and sometimes attitude to, their regulatory obligations’, the letter states. ‘We expect CMCs to have a good understanding and regard