How to apply for authorisation to become a regulated claims company, understanding the fee structure, and how and when to pay fees.
Apply for authorisation
You can apply for authorisation online or by completing a paper form. You’ll find both options in the application area.
The Claims Management Regulator (CMR) usually processes applications within 45 days. However, it can take up to 3 months if the regulator needs to get in touch for more information. Please note that this timescale does not include any time during which we are waiting for information from you.
When you apply, make sure that:
- your company is fully formed and Companies House records are up to date (if you’re a limited company)
- you supply proof of identity (a copy of your passport or driving licence)
- you provide proof of residential address (2 utility bills, such as gas, electricity, water or council tax)
- you provide any additional information indicated by the form in relation to your specific business model. For example, if you intend to have a contract with your client you will need to provide a copy (or draft) of all of your client paperwork with the application form
- you complete the application form correctly
To become an authorised claims management company (CMC), you must complete an assessment of your competence and suitability (PDF, 128KB, 5 pages) . If you are granted authoirsation you must then follow all of the regulations and guidelines.
Renew your authorisation
The regulator will contact you at the start of each new year. You’ll need to supply information about your business turnover so CMR can work out how much your fee should be. This takes about a month.
CMR will then invoice you at the start of March, giving you 30 days to settle the bill.
You can renew your authorisation online.
Fees for authorised CMCs
Authorised CMCs need to pay:
- a one-off application fee of £2,000
- an annual fee (based on your business turnover)
|Annual turnover||Annual fee|
|£5,000 to £14,999||£350|
|£15,000 to £24,999||£500|
|£25,000 to £74,999||£650|
|£75,000 to £88,889||£800|
Larger businesses pay an amount based on their turnover:
- 0.900% of annual turnover up to £1 million.
- Plus 0.800% of annual turnover between £1 million and £5 million.
- Plus 0.750% of annual turnover above £5 million.
For more details, view our Fees Determination 2017-2018 (PDF, 287KB, 3 pages) .
Legal Ombudsman complaint handling fees
We also collect fees for the Legal Ombudsman which now handles service complaints about CMCs. The fees payable by CMCs for complaint handling are set out in the schedule of the The Legal Services Act 2007 (Claims Management Complaints) (Fees) Regulations 2014 and have been amended by the The Legal Services Act 2007 (Claims Management Complaints) (Fees) (Amendment) Regulations 2017.
Pay your fees
You can pay by cheque, postal order or banker’s draft made payable to Ministry of Justice.
If you’re paying your annual fee, write the authorisation number on the back of the cheque or postal order.
If you don’t pay your fees, you won’t be able to operate as a claims management company and your authorisation may be cancelled.
If you have any problems with paying fees, contact firstname.lastname@example.org.