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MoJ shuts one in five chasers

The Ministry of Justice has closed around one in five claim management companies in the last year and almost doubled the number of MoJ staff responsible for regulating claim firms.

A freedom of information request submitted by the Law Society Gazette found the MoJ’s Claims Management Regulation department cancelled the authorisation of 734 claim firms in the year to the end of March, brining the total number of authorised claim firms to 3,018.

The number of MoJ staff allocated to regulating claim firms has risen from 32 in 2007, when the MoJ took over claim management regulation, to 57.

The MoJ has set up a dedicated team to deal with poor practices by rogue claim firms which solicit claims for missold payment protection insurance.

The MoJ launched an investigation last month into claim firms after providers complained of a wave of invalid compensation claims on behalf of customers allegedly missold PPI.

Claim firms accounted for over three-quarters of PPI claims received by the Financial Services Compensation Scheme between 2008 and 2011. Claim firms also accounted for nearly half of all cases received by the Financial Ombudsman Service during 2011.

Highclere Financial Services partner Alan Lakey says: “I want to see the MoJ take more action, particularly where claim firms are bringing unfounded complaints.”



Chris Cummings: Aifa is in a tragic position

Former Aifa director general Chris Cummings says the IFA trade body is in a “tragic” position and is urging advisers to rally behind the organisation. Aifa made an operating deficit of £194,419 for the year to June 30, 2011. It has seen significant changes in the past 12 months. In February, the Association of Mortgage […]


Barclays CEO Bob Diamond agrees to stricter bonus terms

Barclays chief executive Bob Diamond has agreed to a change in the terms of his £2.7m deferred bonus for 2011 following pressure from shareholders. Earlier this month the Association of British Insurers issued an “amber top” alert to its members over Diamond’s £17.7m pay packet. Investor group Pensions & Investment Research Group also advised its […]

Bolton stays with fund to 2014

Fidelity China special situations investment trust manager Anthony Bolton is extending his minimum management tenure by a further year. He will run the £517.9m fund until April 2014, a year later than his original minimum management tenure, which was due to expire in April 2013. It gives the firm an extra year to find a […]

Japan: the Land of the Rising Dividends

By George Boyd-Bowman, Fund Manager at Neptune Many Western investors have long bemoaned the lack of a true dividend culture in Japan, claiming the corporate culture is not tilted in favour of shareholders. Yet today, in the Land of the Rising Sun, we see a fresh impetus to focus on shareholder returns, which is leading […]


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