FCA Authorisation for Claims Management Companies
Get an instant readiness verdict for FCA authorisation. Answer a few quick questions tailored to your business activity.
- Takes 2-3 minutes
- Tailored to your activity
- Designed by ex-FCA specialists
Claims Management at a glance
- Authorisation route
- Permission for the specific regulated claims management activities you carry on (seeking out and referrals, or advice, investigation and representation), by claim sector.
- Capital & resources
- Income-based prudential resources requirement. Professional indemnity insurance is required only where you carry on advice, investigation or representation in relation to personal-injury claims; firms holding client money hold additional resources.
- Typical timeline
- The FCA usually assesses a complete application within 6 months; up to 12 months if it is incomplete.
1. Select your primary activity
Do you have a clear business plan and target market for the permissions you want?
The FCA expects firms to clearly define their target market and show how the business model supports good customer outcomes and regulatory compliance.
Your instant verdict
Answer the questions to see your live readiness verdict.
Speak to our ex-FCA team about your plans.
Readiness score
Your current readiness across the key FCA authorisation pillars.
Top actions
Prioritised actions to close gaps and improve your readiness.
Likely timeline
Usually within 6 months for a complete application (up to 12 months if incomplete).
MEMA support plan
How we can support you from application to approval and beyond.
View support options →Not sure you need authorisation at all? Try the free MEMA Scope perimeter check first. This is an indicative self-assessment, not regulatory advice. For a fuller assessment, book a free scoping call.
What the FCA assesses for a claims management company
Claims management companies are regulated by the FCA and must meet the claims management conduct rules. The FCA looks closely at how leads are sourced, how customers are treated, and whether the firm has the people and controls to run the activity properly.
The 11 questions in this check
Business Model & Scope
Do you have a clear business plan and target market for the permissions you want?
The FCA expects firms to clearly define their target market and show how the business model supports good customer outcomes and regulatory compliance.
Business Model & Scope
Are the regulatory permissions you are applying for correctly scoped for what you will actually do?
Applications are commonly delayed when the permissions requested are broader than the business model, or miss activities the firm will carry on.
People & Accountability
Do you have people with the right experience for the senior roles your regime requires?
The regulator assesses whether the individuals running the activity are competent, capable and fit and proper, with responsibilities clearly allocated (under the SM&CR, the PSD/e-money individual regime or the money laundering rules, depending on your activity).
Financial Resources & Safeguarding
Do you have the capital, safeguarding approach, and financial resources documented for the activity you want to carry on?
The FCA expects appropriate capital planning, safeguarding arrangements (where relevant) and evidence of sufficient financial resources to support the proposed activity.
Compliance Oversight
Do you have ongoing compliance oversight, monitoring, and complaints handling in place?
The FCA expects clear responsibility for compliance, active monitoring of risk and controls, and effective arrangements for handling customer complaints.
Systems & Controls
Do you have the systems, records and financial crime controls the activity requires?
Firms must evidence adequate systems and controls, record keeping, and (where in scope) financial crime and AML arrangements proportionate to the business.
Governance & Accountability
Is there clear board or senior management oversight and accountability for the regulated business?
The regulator expects governance arrangements that give senior management effective oversight, with clear individual accountability.
Ownership & Establishment
Have you mapped your controllers and beneficial owners, and is the firm's mind and management in the UK?
The FCA assesses controllers, beneficial owners and group structure, and expects the firm to be capable of effective supervision with its head office and key functions in the UK (a Threshold Condition, or the equivalent condition under the PSRs/EMRs/MLRs).
Application Readiness
Are your application pack and supporting documents drafted and ready to submit?
A complete, consistent application pack with the required supporting documents materially reduces the risk of delay or a request for more information.
Lead Generation & Marketing
Can you evidence that your lead generation and marketing is compliant?
The FCA scrutinises how claims firms source leads and market, including the ban on unsolicited marketing calls for claims management services without consent (PECR reg 21A) and, for personal-injury claims, the referral-fee ban.
Fees & Client Money
Does your fee model meet the fee cap rules, and are client-money arrangements in place if you hold client money?
Financial-services claims firms are subject to a fee cap, and firms holding client money must meet additional prudential and client-money requirements.
Common pitfalls
- Unclear or non-compliant lead generation and marketing sources
- Fee, disclosure or client-money arrangements that do not meet the conduct rules
- Limited evidence of senior management experience and oversight
Read more on our FCA authorisation service, see how we support claims management firms, or work through the full authorisation readiness checklist.
FAQ
Do all claims management companies need FCA authorisation?
Firms carrying on regulated claims management activity in England, Wales and Scotland generally need FCA authorisation. This tool gives an indicative readiness view, not a definitive answer for your firm.
What does the FCA focus on for CMCs?
Lead generation and marketing practices, fee transparency, customer treatment, senior management competence, and prudential resources (professional indemnity insurance applies only to advice, investigation or representation in personal-injury claims).
How long does FCA authorisation take for a claims management company?
The FCA usually assesses a complete application within 6 months; up to 12 months if it is incomplete. Incomplete applications and slow replies to the FCA's questions are what stretch the timeline in practice.
How many FCA applications are refused?
The FCA publishes this. For new firm authorisations in 2025/26 it recorded 6 refusals, 185 rejections (applications that did not include the minimum information) and 389 withdrawals. In 2024/25 it was 12 refusals, 157 rejections and 506 withdrawals. Formal refusals are rare, but a much larger number of applications are rejected as incomplete or withdrawn before a decision. Source: FCA data OE-M02.
How accurate is my result?
It is an indicative readiness view based on your answers, designed by ex-FCA specialists. It is not a prediction of the FCA's decision or a substitute for a full assessment.
Is this a compliance check?
No. It is a quick self-assessment to help you understand your readiness and the gaps to close before you apply. It is not regulatory advice.
How is my data used?
Your answers power your live result. If you ask for the PDF report we email it to you and may contact you about your results. See our privacy policy for details.
What happens after I submit?
You get the PDF readiness report by email, and you can book a free scoping call with our ex-FCA team to talk through the gaps.