Review of claims management companies

A “fundamental review” of regulation surrounding claims management companies has been launched by the Ministry of Justice and HM Treasury. The review will consider whether a new independent regulator should be provided, further powers given to the Financial Conduct Authority or extra resources given to the existing regulator, the Ministry of Justice’s Claims Management Regulation Unit.

It follows concerns that claims management companies fuel speculative claims and create a social nuisance through cold calling, and is due to be completed in early 2016.