Transfer to FCA of regulation of claims management services

Part of Financial Guidance and Claims Bill [Lords] – in a Public Bill Committee at 9:25 am on 6 February 2018.

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New clause 7—Regulatory principles to be applied in respect of claims management services—

“(1) In relation to the regulation of claims management services, the FCA must act according to the principles that—

(a) authorised persons should act honestly, fairly and professionally in accordance with the best interests of consumers who are their clients; and

(b) authorised persons should manage conflicts of interest fairly, both between themselves and their clients, and between clients.

(2) In this section, ‘authorised person’ has the same meaning as in the Financial Services and Markets Act 2000, and ‘authorised persons’ shall be construed accordingly.”

This new clause would introduce a duty of care which would require claims management services to act with the best interests of the customers in mind.