View more on these topics

Staffs trading standards to oversee claim-chasers

The Department for Constitutional Affairs has chosen Staffordshire County Council’s trading standards unit to supervise the regulation of claim management companies nationwide.

Head of claims management regulation Mark Boleat says it is the first time that such a body has been picked by the Government for a regulatory role. He admits there is a risk factor in the arrangement but says SCCTS has proved itself at a local level and the arrangement will be watched closely to see if it can be used more generally within Government.

He will not reveal how much SCCTS will be paid but says the contract is for less than 1m. The DCA has allocated a budget of 750,000 for claim management regulation in 2006 and 2007.

Regulated firms will pay a minimum 400 initial fee and 400 a year, with bigger claim handlers paying considerably more.

Boleat says: “This model has never been done before and there is a risk factor as their experience is local rather than national. We will be watching to see how it works.”

Boleat says the DCA has to walk a tightrope of regulating aggressive firms without adding unneeded regulation to others.

He says worries that claim companies will be left unregulated if they focus on mortgage claims in areas other than product sales – such as exit fees, for example – will be looked at before final regulations are put before Parliament in October.

Boleat says that he does not expect to still be in his part-time position after a sear and says a civil servant could take on the role.

Recommended

Schroders adds Goldman Sachs dynamic fund to its portfolios

The Schroders multi-man-ager team has added Goldman Sachs dynamic opportunities – the biggest London-listed hedge fund of funds – to all three of its multi-manager portfolios. Dynamic global opportunities is a closed-ended fund of hedge funds which raised 274m during an initial public offering in July. The fund has a relatively concentrated portfolio and is […]

Brokers wary of 20-year fixed deal

Newcastle Building Society is offering a new 20-year fixed-rate homeloan at 5.49 per cent for direct customers. Loans can be between 15,000 and 250,000 up to 90 per cent loan to value. There is a 499 completion fee and early repayment charges range from 1 per cent to 6 per cent. Purely Mortgages chief executive […]

FSA fines Berry Birch & Noble former chief

Berry Birch & Noble Insurance Brokers former chief executive Paul Harrison has been fined £17,500 by the FSA for failing to have proper systems and controls in place to protect customers’ money held by the firm.BBNIB was authorised as a general insurance broker between Januray 14 2005 and May 8 2006. In July 2005 the […]

Praise for Prudential stance

I want to congratulate the Prudential for publicly declaring that it will take steps to deal with churning. Last year, I was invited to a discussion hosted by Prudential distribution director Andy Briggs and, interestingly, the IFAs around the table debated this question quite fiercely. I recall being quite aggressive in my assertion to Andy […]

In search of value? Banks and the sectors leading Europe’s recovery

By Rob Burnett, head of European equities, Neptune  After nine years of underperformance versus quality growth, Rob Burnett, manager of the Neptune European Opportunities Fund, believes that value strategies have reached an inflection point. Watch Rob discuss why he believes value is well positioned to resume its historical trend of outperformance. Click here to watch […]

Newsletter

News and expert analysis straight to your inbox

Sign up

Comments

    Leave a comment