FCA Compliance Strategy for Claims Management Companies Key Steps for Effective Implementation.pdf

This presentation provides a detailed compliance roadmap for Claims Management Companies (CMCs) based on the Financial Conduct Authority's (FCA) Portfolio Strategy. It highlights the key risks identified by the FCA, including unclear communication with consumers, inadequate checks on customer data, and poor submission of regulatory returns. The presentation outlines a comprehensive action plan, emphasizing the importance of reviewing the FCA’s guidance, assessing current practices, and implementing a robust compliance monitoring program. Additionally, it covers the preparations required for the upcoming Consumer Duty regulations and the need for ongoing support to maintain regulatory compliance and protect consumer interests.

1. Introduction to FCA’s
Portfolio Strategy for
CMCs
Introduction to the FCA’s regulatory focus on
Claims Management Companies (CMCs).
Highlight the importance of compliance with
FCA regulations to avoid risks and penalties.
Objective:
To provide a compliance roadmap for CMCs
based on the FCA's Portfolio Strategy.

2. Key Risks Identified by the FCA
1 Unclear Consumer Communication:
Issues with communicating which services are regulated.
2 Customer Data & Lead Purchase:
Inadequate checks and documentation when purchasing
customer data or leads.
3 Inadequate Investigation:
Failure to investigate the merits of potential claims properly.
4 Poor Submission of Returns:
Not submitting quality returns on time or at all.

3. Compliance Action Plan for
CMCs
1 Review FCA’s Letter:
Understand key risks and expectations.
2 Assess Current Practices:
Identify non-compliance areas within existing policies and
procedures.
3 Training & Education:
Educate staff on regulatory requirements and best practices.

4. Implementing Compliance Measures
1 Documentation Preparation:
Develop policies, procedures, and compliance manuals.
2 Compliance Monitoring Program:
Establish a program to ensure adherence to all policies and
regulations.
3 Monitoring Consumer Outcomes:
Regularly check customer outcomes to ensure quality
service.

5. Preparing for Consumer Duty
and Ongoing Support
1 Consumer Duty Preparation:
Begin preparations for FCA’s Consumer Duty
effective from July 31, 2023.
2 Regular Review & Updates:
Update practices to align with ongoing regulatory
changes.
3 Seek Expert Support:
Partner with compliance experts for ongoing
guidance and support.

6. CONTACT US
[email protected]
03301330811

Suite 1810, Unit 3a,34-35 Hatton Gardens, Holborn, EC1N 8DX
https://www.memaconsultants.com

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