To ask the Chancellor of the Exchequer, whether he plans to bring forward legislative proposals to include (a) claims management companies and (b) law firms undertaking claims activities in the remit of the Financial Conduct Authority's jurisdiction and supervision under the supervision of the Solicitors Regulatory Authority.
The government is committed to strengthening claims management regulation. The provisions of the Financial Guidance and Claims Act allows the Financial Conduct Authority (FCA) to introduce a regulatory regime that enhances both consumer protection and professionalism in the sector.
The government will introduce secondary legislation in the autumn to enable the transfer of claims management activity from the Claims Management Regulation Unit to the FCA, and the transfer of complaints handling from the Legal Ombudsman to the Financial Ombudsman Service. From 1 April 2019, the FCA and the Solicitors Regulation Authority (SRA) will regulate firms that carry out claims management activities, and the Financial Ombudsman will handle complaints made about regulated firms.
Law firms undertaking claims management activity will be exempt from regulation by the FCA, but are regulated by the SRA. The FCA and the SRA are working to review their memorandum of understanding to ensure they work together to effectively regulate relevant firms.