MEMA Scope · Assessment
Do claims management companies need FCA authorisation?
A company finds, refers, advises on, investigates or represents consumers in claims such as financial services, personal injury, housing disrepair, benefits, criminal injury or employment claims. Review the initial view below and answer a few questions to refine it.
- Personalised to your business
- FCA rule references
- Follow-up questions available
Potential regulated activity identified
Claims management may require FCA authorisation
Claims management activities in Great Britain are regulated by the FCA and generally need authorisation.
Route to consider: Direct authorisation (full permission)
Why this was flagged
- 1Seeking out claimants, referring claims and advising on, investigating or representing claims are specified claims management activities.
- 2Taking a share of compensation is a typical feature of claims management.
Questions still to resolve
Answer to refine the view. The result updates as you go.
- ?
Do your claims fall within one of the listed types: financial services or products, personal injury, housing disrepair, specified benefits, criminal injury or employment?
- ?
Do you operate in Great Britain?
- ?
Do you only generate and refer leads to a regulated firm and do no advice, investigation or representation?
Regulatory basis to examine
Your next steps
- 1Confirm which claim types and activities you carry on
- 2Check client agreement, fee disclosure and complaints handling against CMCOB
- 3Review financial promotions and lead-generation arrangements
- 4Check capital resources and professional indemnity insurance requirements
Where applications for this model most often fall short
- Client agreements and fee disclosure that meet CMCOB
- Lead generation due diligence
- Professional indemnity insurance and capital resources
This is an initial indication from published FCA material, not an FCA determination or legal advice.
If authorisation is required, check the firm’s governance, policies, resources and application preparedness.
MEMA Scope gives an initial view from published FCA material. It is not legal advice or an FCA determination. Automatic matching and typed questions use AI only to choose a profile and to answer from vetted guidance; the assessment itself is never written by AI.
About this business model
A company finds, refers, advises on, investigates or represents consumers in claims such as financial services, personal injury, housing disrepair, benefits, criminal injury or employment claims.
Claims management activities in Great Britain are regulated by the FCA and generally need authorisation.
This page gives an initial view from published FCA and legislation sources. It is not an FCA determination or legal advice. Not your business model? Describe your business in MEMA Scope.
Claims management company: frequently asked questions
Do claims management companies need FCA authorisation?
Seeking out, referring and identifying claims, and advising on, investigating or representing claims of the specified types, are regulated claims management activities that the FCA authorises.
Is lead generation for claims regulated?
Seeking out persons who may have a claim and referring their details are specified activities in their own right, so lead generation for claims can be caught.
What could change the answer for claims management companies?
Claims management activities in Great Britain are regulated by the FCA and generally need authorisation. It can change depending on the answers to questions such as: Do your claims fall within one of the listed types: financial services or products, personal injury, housing disrepair, specified benefits, criminal injury or employment? Do you operate in Great Britain? Do you only generate and refer leads to a regulated firm and do no advice, investigation or representation?
Which FCA rules should claims management companies look at first?
Start with: Claims management activities; FCA: claims management companies; CMCOB: application and purpose. This is an initial view from published FCA material, not an FCA determination.
What are the first steps for claims management companies?
Confirm which claim types and activities you carry on. Check client agreement, fee disclosure and complaints handling against CMCOB. Review financial promotions and lead-generation arrangements. Check capital resources and professional indemnity insurance requirements.
Businesses we check
MEMA Scope covers 32 common business models. Each page explains whether that kind of business may need FCA authorisation, the rules to look at and the routes to consider.
Consumer credit
- Do car dealers offering finance need FCA authorisation?
- Do motor finance brokers need FCA authorisation?
- Do retailers offering buy now pay later need FCA authorisation?
- Do consumer lenders need FCA authorisation?
- Do debt collectors and debt administrators need FCA authorisation?
- Do debt management and debt advice firms need FCA authorisation?
- Do credit lead generators and comparison sites need FCA authorisation?
- Do rent-to-own and vehicle leasing providers need FCA authorisation?
- Do credit brokers introducing customers to lenders need FCA authorisation?
Payments and e-money
- Do payments apps and payment processors need FCA authorisation?
- Do small payment institutions need FCA authorisation?
- Do e-money issuers and digital wallets need FCA authorisation?
- Do agents of payment institutions need FCA authorisation?
- Do open banking providers need FCA authorisation?
- Do money transfer and remittance businesses need FCA authorisation?
- Do marketplaces handling payments need FCA authorisation?
Insurance
Mortgages
Investments and wealth
- Do financial advisers need FCA authorisation?
- Do discretionary investment managers need FCA authorisation?
- Do investment platforms and wealth-tech firms need FCA authorisation?
- Do crowdfunding and peer-to-peer lending platforms need FCA authorisation?
- Do corporate finance boutiques need FCA authorisation?
Want a consultant to look at your facts?
Book a free scoping call and we will map the permissions, evidence and timeline for your firm.
Phone: 0330 133 0811
Email: contact@memaconsultants.com