Claims management companies must be more specific on separate permissions and competency when they come under the remit of the FCA, according to HM Treasury.
Under rules proposed in the Treasury’s latest consultation paper, claims management companies will operate under six sectors – housing disrepair, industrial injuries disablement benefit, personal industry, financial products and services, criminal injury compensation, and employment.
The Treasury warns the regulator will look for demonstration of specific and suitable competency for the sector in which the company decides to operate.
The Treasury says: “This will make it possible for the FCA to take into account the different types of work across each sector and different activities.”
Companies will require separate permissions depending on the specific activities and sectors of their operation, with some also requiring several permissions.
Regulated areas for claims management companies currently cover marketing and communications, advertising, referrals and introductions of claims, and representation.