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PFS response to FCA Claims Management phoenixing consultation paper
Publication date:
17 May 2021
Last updated:
25 February 2025
Author(s):
Personal Finance Society
In response to the FCA’s consultation paper exploring ways to prevent claims management phoenixing, Keith Richards, CEO of the Personal Finance Society, said: “Last year I received 40 complaints about the conduct of claims management companies in less than a week and shared this evidence with the regulator.
“The FCA is right to be concerned about individuals connected with a wound-up financial services firm reappearing in connection with a claims management company.
“Individuals should not be able to financially benefit from their own past conduct, which caused consumers to be out of pocket.
“It is appalling that of the 250 claims management companies the FCA regulates with permission to manage financial services claims, at least 18 are linked with businesses that could allow individuals to benefit from their past firms’ poor conduct.
“The cost of poor practices at a minority of claims management companies impacts public trust and pushes up the cost of financial advice. Phoenixing must stop.”
This document is believed to be accurate but is not intended as a basis of knowledge upon which advice can be given. Neither the author (personal or corporate), the CII group, local institute or Society, or any of the officers or employees of those organisations accept any responsibility for any loss occasioned to any person acting or refraining from action as a result of the data or opinions included in this material. Opinions expressed are those of the author or authors and not necessarily those of the CII group, local institutes, or Societies.
