Detail of outcome
The response to the consultation paper summarises the responses that were received to the initial consultation paper and sets out the final financial penalties scheme that is to be implemented by the Regulator by the end of 2014.
In December 2013, the Compensation Act 2006 was amended by the Financial Services (Banking Reform) Act 2013 to give the Secretary of State power to make regulations that would enable the Claims Management Regulator (CMR) to impose a financial penalty on any regulated claims management company found to be in breach of the conditions of authorisation. As a result, the Regulator’s enforcement toolkit is to be expanded accordingly.
The proposed expansion means that the Regulator will have the option to impose a financial penalty as an alternative or in addition to its current powers to vary, suspend or cancel a regulated claims management companies (CMCs) authorisation for a breach of the conditions of authorisation.
The consultation paper sets out the proposed financial penalties scheme that would be implemented by the Regulator and is aimed at all regulated CMCs providing regulated claims management services within England and Wales, the Regulatory Consultative Group (RCG), The First-Tier (claims management services) Tribunal and any other party with an interest in claims management matters.