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A Word From Sarah About The New FCA Regulations

23 April 2019

“The FCA regulations will ultimately benefit the consumer – but also people working in claims management.”

by Managing Director, Sarah Stokes

Since April 1st 2019, all claims management firms have had to become Financial Conduct Authority compliant. Those who have applied for FCA status have been granted ‘temporary permission’ which will, in nearly all cases, lead to full permission once applications are processed.

In our office, the claim managers welcomed the prospect of compliance, if for no other reason than to feel they were part of a tightly scrutinised industry. In fact, we were all of a similar opinion: ‘what’s good for the consumer, is good for us all’.

Many of us felt the previous regulator, simply called ‘the claims management regulator’, preached from a similar book to the FCA, but with less precision. The FCA’s predecessor lacked sufficient power to guard against cowboys working in claims management, suggested an independent review in 2016.

The term ‘cowboys’ might be too strong for some, our industry isn’t known for malpractice, but there are those who could have prioritised client care more. The new regulations will help weed out such operators.

The FCA demands that claims management firms are utterly transparent with consumers when taking on a claim, after all, the vast majority of consumers making a claim have already received questionable financial guidance, it therefore stands to reason that they should be made fully aware of all circumstances before pursuing further action.

Of the FCA’s new regulations some of the most salient points are as follows [sic]:

  • For claims management firms to be clear about fees and the services charged – and how the two correlate – in a way consumers can easily understand
  • Ensuring all telephone calls with clients are recorded and kept for one year following final contact – this is to dampen pushy sales techniques
  • Inform the client that they can submit a claim to the Financial Services Compensation Scheme or the Financial Ombudsman without the need of legal or claims management services.

Perhaps the most interesting part of the FCA’s new policies, is however, their determination to outlaw firms who encourage “fraudulent, frivolous or vexatious claims or claims which have no good basis.” It’s this kind of territory where we can safely use the term ‘cowboys’ to describe firms who have operated where there is no merit to a claim. Speculative claims cause the consumer to suffer in the long run as well as many Financial Advisers whose good name is unnecessary called into question – this in turn, reflects poorly on the entire field of claims management.

Prior to the FCA taking over, reputable claims management firms had a habit of reviewing prospective clients’ case histories before taking on a claim, most did so with a fine toothcomb. The reason for this is two-fold. First, to ensure the merits of the claim and secondly to get a sense of the complexities of a claim. We at Pension Claim Consulting have always encouraged clients to apply for settlement without our assistance, in straightforward cases.

With these policies now enshrined in regulation, the claims process will almost certainly gather the transparency the FCA seeks. Some firms will find the going too arduous. A recent BBC report predicted up to eighty per cent of claims management firms would fall by the wayside. In fact, as I write, I can think of a few firms who have given up the ghost already as they don’t wish for the burden of FCA compliance, a couple of these are both well-known and successful; some are sole operators; others are the aforesaid cowboys whose departure is a blessing.

For our part, we are delighted with this new era of regulation as it brings clarity to the industry and benefits everyone within it – as well as the consumer who is entitled to reclaim their lost pension funds.

Robert Pemberton
2022-04-11
Antony Stroud
2022-04-08
Excellent company, would definitely use again, they never gave up
Junior Geener
2022-03-20
always kept you informed has to what was going on .I'd recommend pension claim to anybody
Ian Gaynor
2022-03-14
A thoroughly positive result and experience. In all honesty I didn't have much hope of any success following a truly dodgy pension investment. I spent years angry at myself then decided to let these guys have a go on my behalf. It took hardy any effort on my part and they kept me fully informed, then out of the blue I got a call saying they have won all my pension back plus more and within days it hit my account. Thrilled with their effort and professionalism. I dealt with a few different staff and all were informative, polite and helpful. I great end to a terrible situation. 100% genuine review and I cannot recommend them enough. Thank you.
Grace Anderson
2022-03-11
Pension Claim Consulting were a Godsend. I was told about them by a friend who had also invested in a pension. They kept me informed on the progress of my claim with regular updates and answered my queries with patience and professionalism. There percentage for on behalf was also lower than expected. I can't thank them enough
adrian buck
2022-03-10
Keith Wilkins
2022-03-09
Very thorough and achieved the goal regarding compensation in full. Took a while but was worth the wait
Mark Holmes
2022-03-08
Excellent service. Great result.
michael dixon
2022-03-08
I was approached by Pension Claim Consulting after the company that was handle ing my SIPP had been investigated by the Financial Ombudsmen and informed me i had a case, with this information given to me i agreed to let them represent me in trying to reclaim my investment. All through the process i was informed of every step and on a regular basis even though it took many months the outcome was successful and i was reimbursed fully. This is a fantastic company to work with and dedicated staff who know their business. Many Thanks. Mike Dixon.
Roderick Turnbull
2022-03-08
Important Information!

You are not required to use our services to pursue your claim. You can also seek further advice or shop around subject to any time limits within which a claim must be made.

It is possible for you to present the claim for free, either to the firm or person against whom you wish to complain or to the statutory ombudsman (Financial Ombudsman Service or Pension Ombudsman Service) or the Financial Services Compensation Scheme, whichever is applicable to your claim.