FCA reminder could be 'final warning' to CMCs

04 Nov 2020

A Financial Conduct Authority letter to claims management company CEOs could foreshadow hefty enforcement action according to Insurance Post.

In an article that highlights how CMCs have demonstrated a poor attitude to regulatory obligations, BLM's head of fraud, Sarah Hill commented on the findings that show how CMCs may seek to exploit claimants and said, "This is a welcome step taken by the FCA as part of their supervision strategy for CMCs. The connection between claims farming and insurance fraud has rapidly accelerated as CMCs venture into new areas to generate business. We have witnessed first-hand the harm to consumers who have been misled into making claims for compensation and the consequences that ensue when things go horribly wrong. Regulation and education are key to protecting the vulnerable consumer."

Click here to read the full article on the Insurance Post website.

 

 

 

<< Back

Disclaimer: This document does not present a complete or comprehensive statement of the law, nor does it constitute legal advice. It is intended only to highlight issues that may be of interest to customers of BLM. Specialist legal advice should always be sought in any particular case.

Related Expertise


Related Sectors


Related contacts


Sarah Hill

Sarah Hill

Partner, head of fraud practice group and head of office,
Birmingham


Who to contact


For more information about any of our news releases, please contact:

Natalie King
 +44 20 7638 2811
+44 20 7920 0361
Email Natalie

Jo Murray
+44 20 7638 2811
+44 20 7865 4849
Email Jo

Fasiha  Khan 
+44 161 236 2002
+44 161 838 6324
Email Fasiha

|

Not what you are looking for? Click here!