FCA proposes CMC price cap
Regulatory Updates | 21/01/21
The FCA is consulting on proposals for a cap on CMC fees.
CMC fees will be capped at 15 – 30% of any monetary redress paid as a result of a claim, depending on the size of the claim. Where no monetary redress is paid, CMCs will be able to charge a reasonable amount for the work it has done.
The consultation also includes proposals around disclosure of fees for customers, including requiring separate disclosure of the likely level of fees and acknowledgement by the customer.
The consultation is open until 21 April 2021. A policy statement is expected to be published in Autumn 2021. If a fee cap is confirmed the FCA will monitor its effects on the CMC market and its consumers.