It launched a discussion paper, ‘Restricting fees for some claims management services’, this week, setting out its approach and asking to what extent its rules should be aligned with the proposals of the Financial Conduct Authority (FCA), which regulates the vast majority of this sector.
Under the Financial Guidance and Claims Act 2018, the SRA’s rules must prevent excessive fees being charged for claims management activities connected to financial products or services.
Paul Philip, SRA Chief Executive, said: ‘This is an important piece of work for consumers and the firms we regulate.
‘Fees have to be set at a level that means the cost is affordable for people seeking redress, while ensuring that this is still a viable area of work for firms that provide this service for those who need it. So although the number of law firms involved may be small, the impacts for consumers could be significant.
‘I would urge firms currentlyproviding claims management in this area, and others who may be thinking about doing so, to read the discussion paper and let us know what you think.’
View the discussion paper at bit.ly/3xvpg5N and submit your views by 29 September.
The SRA will hold a webinar on its thinking in this area, on 14 July at 12.30pm. Register here: bit.ly/3hTYz4m.
