FCA to view CMC serving high amounts of complaints at FOS

The financial behavior body aims to consider the management companies that file large amounts of FOS complaints but reach low rates.

In a letter published yesterday (January 31), the regulator outlined its strategy to supervise the CMC for the next two years, as well as a view of the harm and risks they create.

One of the priority areas for FCA was to consider the standards of service, considering whether CMC investigates the existence and merit of each element of the potential claim before pursuing it, or advising the customer to do so.

Along with viewing companies that make large amounts of claims to FOS but have low rates, FCA will also use this work to understand the impact of the Ombudsman’s proposals on the collection of representatives.

Key problems

From the point of view of the harm and risks that CMCS create, FCA believed that deceptive advertising was a problem, the general compliance with “still unsatisfactory”.

It says: “We sometimes detect several violations of the rules in individual shares and repeatedly violate, despite our intervention.”

FCA added that it will continue to review CMCS financial actions and marketing activities of firms and will take “supervisory or enforcement actions” where necessary.

Another issue was the inappropriate search for clients with claims by firms, some of them accept potential clients of third parties, but do not conduct or not record a sufficient verification of the proper verification.

“CMC should ensure that they can legally, fairly and transparently process such data. We expect CMC to carry out appropriate checks before using the data provided by third parties.

“We expect these inspections to be permanent and will be monitored through our supervision work, as well as taking into account the search for firms,” the regulator explained.

We encourage cooperation between CMC and reacters to work together in the interests of consumers

Fca

In the city’s guard, he stated that “the unacceptable amount of CMC that have not yet registered the Chief User” on their reporting platform, Regdata, that is, their profits are overdue.

“We will perform actions against any CMC that continues to fulfill these obligations. We expect the highest managers of firms will take steps to ensure that reporting is updated, “FCA warned.

In addition, the regulator stated that he had heard anecdotal anxiety about CMCs, which submit large amounts of requests or claims in a short period of time, that is, re -re -reactants try to resolve these claims within the established restrictions.