Labour and Conservative peers are pushing to amend the Financial Services Bill so claims management companies are regulated by the Financial Conduct Authority.
The bill, currently in the House of Lords, will see the FSA broken up and replaced by the Prudential Regulation Authority and the independent market regulator, the FCA.
Claims management firms are currently regulated by the Ministry of Justice, although there has been industry concern about the resources at its disposal.
The amendment, tabled by Conservative Lord Flight (pictured), Labour Treasury spokesman in the Lords Lord Eatwell and Labour peer Baroness Hayter, would see financial CMCs added to the 27,000 firms set to be regulated by the FCA,
Highclere Financial Services partner Alan Lakey says: “This sounds like a good idea. With the FCA’s more hands-on approach, they could have one high-profile thrashing of a major offender and that would send out a tough message.”