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Dear temporary permission holder | Release Date: 4th June 2019

To read a shorter summary of this Dear temporary permission holder letter, click here.

To access the original FCA document, click here.

Long Summary

This letter issued by the Financial Conduct Authority (FCA) to the CEOs of Claims Management Companies (CMCs) outlines stringent expectations and prevalent concerns regarding the conduct and operational practices of CMCs. It underscores the FCA’s heightened regulatory focus following notable issues, particularly concerning financial promotions and client representation practices.

Regulatory Framework and Compliance Obligations

Comprehensive Overview of Regulatory Requirements:

Detailed Review of Compliance Challenges

Identification of Common Issues and Non-compliance Trends:

Specific Compliance Requirements and Recommended Actions

Mandatory Actions Required from CMCs:

Focused Areas of Compliance

Consent and Authority in Client Representation:

Transparency and Integrity in Financial Promotions:

Robustness of Systems and Controls:

Ongoing Monitoring and Consequences of Non-compliance:

Strategic Recommendations for Ensuring Compliance

Proactive Recommendations for Operational Compliance:

Concluding Remarks and Expectations

Final Notes and Urgency in Compliance:

This comprehensive summary serves as an in-depth guide for CMCs to realign their operations with FCA standards, ensuring all client interactions and promotional activities are conducted within the regulatory framework established to protect consumers and maintain market integrity.

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