FCA mulls fee cap for CMCs

Industry News | 21/06/19

The Financial Conduct Authority is exploring the case for capping the fees claims management companies can charge for bringing claims. The regulator wrote to CMCs informing them that it will send an information request to a representative sample of the market to “explore whether it is necessary to introduce fee caps and, if so, how it should do this”.
According to the Financial Guidance and Claims Act, the FCA must look at restricting charges for CMCs in relation to financial products and financial services claims, which can include fee caps. Under these rules, the regulator can also restrict charges for other type of claims.

Source: FT Adviser