CMCs were required to register with us for temporary permission by 31 March 2019. We explain what happens now this date has passed.
What happens now that firms have registered for temporary permission
CMCs that have registered for temporary permission (TP) are expected to comply with FCA standards[1] from 1 April 2019. Your firm may face action if you do not. This could include opening an enforcement investigation and ultimately imposing an enforcement sanction (such as a financial penalty). And, while firms with TP will generally be able to do any regulated activity in any of the 6 sectors we will be regulating, if we have specific concerns about that firm, we may limit what the firm is allowed to do – for example, tell it to stop holding client money, or stop handling claims in a certain sector. We can take action like this against firms for conduct that took place before the transfer to the FCA, as well as after.
Which firms needed to register for temporary permission
The following firms were required to register with us for temporary permission:
- Firms that were authorised to carry on claims management activity under the Compensation Act 2006.
- Firms that would have been required to be authorised under the Act 2006 if it had extended to Scotland.
- Firms that are performing CMC activities relating to S.75 of the Consumer Credit Act 1974 that will be regulated from 1 April 2019.
CMCs that did not register by 31 March 2019 must stop regulated claims management activities. If you continue carrying on regulated claims management activity without authorisation you will face potential enforcement action through the civil or criminal courts for unlawful activity.