Claims Management Regulator

ministry-of-justice

The Claims Management Regulation Unit was set up in April 2007. It has been responsible for regulating Claims Management Companies (CMCs) through the Claims Management Regulation (CMR) under the Compensation Act 2006, Part 2.

The areas that are covered by regulation under the Compensation Act 2006 include financial products, such as Payment Protection Insurance (PPI), also personal injury and employment.

Regulatory objectives of the Claims Management Regulation Unit:

  • Helping to improve ‘access to justice’
  • Ensuring consumers interests are protected and promoted fairly
  • Protecting and promoting the public interest
  • Ensuring there is ‘competition’ and good working practices
  • Improving standards and the conduct of authorised persons and firms

The Regulatory Consultative Group

The Claims Management Regulation Unit also consults with trade associations, including the PFCA, banking associations, consumer groups and regulators. They share best practice and new sector developments, in particular, addressing issues associated with the poor management of PPI claims

Other industry regulators and bodies with whom information is shared:

  • Financial Ombudsman Service
  • Financial Conduct Authority
  • Financial Services Compensation Scheme
  • Information Commissioners Office
  • Legal Ombudsman
  • Solicitors Regulation Authority

What they regulate under the Compensation Act 2006:

  • Personal Injury (PI)
  • Financial products and services, such as PPI
  • Criminal injuries compensation
  • Employment
  • Industrial injuries disablement benefit
  • Housing disrepair

The types of financial claims management activities which are regulated:

These can be found in the PFCA’s Code of Practice.