The Department for Constitutional Affairs has received almost 1,200 applications from claim-chasers ahead of its regulation of the sector, with a significant number of firms applying to work in financial services.
The deadline for ensuring firms are authorised by April, when regulation starts, passed last week, by which time the DCA had received 1,176 applications.
A DCA spokesman says a late rush of applications, which doubled in the last week, and the fact that applications are still being received means it is too early to suggest a specific start date for regulation.
The spokesman says over 75 per cent are seeking authorisation to deal with personal injury claims, with the rest made up of financial services, criminal injuries and employment matters. But he expects some of the personal injury firms to also venture into financial services.
Directors of firms acting outside of authorisation could face prison sentences of up to two years.
A DCA spokesman says: “We are still seeing applications coming through and a significant number are from firms involved in financial services.”
Baronworth Investment Services director Colin Jackson says: “I am thrilled that at last these guys are facing regulation although it should have happened sooner. Some firms are better than others but two years in prison is too good for a number of these individuals.”