CMCs warned over "excessive" fees and unclear communications

Claims Management Companies carrying out unregulated activity are being cautioned about "excessive fees" and the FCA's powers to cancel their Part 4A permissions if no regulated work is conducted in a 12-month period.

By Neasa MacErlean

The warnings come as a follow-up to a Financial Conduct Authority review of 26 companiesthat offer tax claims as part of their services. As a result of the survey (which included site visits), "some" firms have applied to cancel their permissions and about 70 per cent have stopped unregulated claims activity.