View more on these topics

MP support growing to transfer claim firm regulation to the FCA

Cross-party support among MPs is mounting for the regulation of claims management firms to be moved from the Ministry of Justice to the FCA.

All Party Parliamentary Group on financial services and insurance chair Jonathan Evans is leading a group of 10 MPs pushing the MoJ for change.

He says Justice Secretary Chris Grayling has ordered a departmental review to examine proposals for a change of regulator.

Evans says: “I believe claims management firms need a serious regulator. It is perfectly clear the MoJ does not have the capacity, expertise or resource to be able to properly regulate CMCs. The MoJ register firms and deals with technical issues on details without proper conduct regulation. I believe it should be the FCA, it is the obvious place.”

Conservative MP Heather Wheeler and Evans have held meetings with Grayling and FCA director of supervision Clive Adamson over the proposal.

Evans says: “Chris Grayling said he would arrange for someone to look at it in the department and I anticipate someone is now considering it. We will follow it up because it was clear there are a number of other parliamentarians who support our initiative and want to join what we said.”

The use of financial claims firms has rocketed since the payment protection insurance misselling scandal exploded in 2011.

Debt charity Debt Support Trust director Stuart Carmichael says he backs calls for the FCA to take over the regulation of claims firms as it is a more strict regulator than the MoJ.

He says: “I think the FCA’s policies are possibly the strictest and most direct of all the regulators out there now. And that can only be a good thing for consumers. The barriers to entry with the MoJ are low so it would be good for a tighter regime to monitor them.”

Recommended

Bob-Young-MS-CUTOUT-250x255.jpg

Remember the lessons of the past

There was much wailing and gnashing of teeth around the recent launch of Magellan Homeloans given the new lender will be offering products to those borrowers who have experienced adverse credit. Part of me thinks this is understandable especially when we talk about ‘sub-prime’ mortgages given there is a fear of returning to the days […]

UK-Currency-Money-Pounds-Notes-700x450.jpg
32

Shawbrook sets up fast-track bridging team

Shawbrook Bank has launched a short term lending team, which will exclusively manage those deals that require a fast turnaround. The new team will be made up of three lending managers and a lending officer and has been formed after an increase in demand for short-term loans. As Shawbrook looks to bring more bridging products […]

Pension savings-2015

Overseas transfer charge

By Jim Grant, Senior Product Insight & Technical Support Analyst, Royal London Transfers to overseas pension schemes are not recognised transfers unless the transfer is to a Qualifying Recognised Overseas Pension Scheme (QROPS). A transfer to an overseas pension scheme that isn’t a QROPS is therefore an unauthorised payment and taxed accordingly. However, even if the […]

Retirement - thumbnail

(Another) downhill stroll — retirement planning

A report published this morning by the CIPD (CIPD Employee Outlook March 2015) provides yet more interesting data to the changing landscape of retirement planning. It should be remembered that we are in a period of genuine flux here given that the default retirement age was scrapped three years ago, and new pension freedoms come online in April. Both of these alterations will have a huge impact on how employees plan for their retirement.

Newsletter

News and expert analysis straight to your inbox

Sign up