On 3 March 2023, the FCA published Consultation Paper CP23/6: Quarterly Consultation No 39 (CP23/6).
In CP23/6 the FCA proposes additional guidance for completing the Annual Claims Management Report form (CMC001) and minor amendments to the numbering of the fields in the form.
Introduction
In July 2022, new rules came into force prohibiting claims management companies (CMCs) from carrying out regulated claims management activity on claims and potential claims to the Financial Services Compensation Scheme (FSCS), where the CMCs have relevant connections to the claims.
As part of these rules, the FCA requires CMCs to routinely notify them of connections they have to financial services firms that could be relevant to this. As such, additions were made to CMC001, requiring firms to notify the FCA annually of relevant connections.
Proposals
In order to assist with signposting which CMCs need to complete these additional fields in CMC001, the FCA proposes the following:
- The FCA will add guidance in the ‘General notes’ section in SUP 16 Annex 45B.
- The FCA will add similar signposting under the heading ‘Relevant Connections’ before data point 35 to assist firms in knowing if the upcoming section in CMC001 is relevant to them.
- For questions 35 to 37 in CMC001, the FCS proposes to add corresponding guidance for each. This is to assist firms in answering each question in line with the requirements on relevant connections.
- Making minor additions to the guidance notes to help with signposting relevant firms elsewhere in CMC001.
- Further to the minor administrative changes in SUP 16 Annex 45A that come into force on 1 April 2023, the FCA proposes a minor change to guidance and the numbering of some fields at the end of the form.
Next steps
The deadline for comments on CP23/6 is 27 March 2023.