Question to the HM Treasury:

To ask the Chancellor of the Exchequer, what discussions he has had with representatives of the Financial Conduct Authority on its 2021 consultation on proposals to ban claim management companies from handling FSCS claims where they had a relevant connection to the claim.

Consumers should have confidence that firms are acting in their best interests when using claims management companies (CMCs) to help them obtain compensation. The Government welcomes the FCA’s consultation on proposals to prevent the practice of ‘phoenixing’, which intend to ensure that CMCs are not seeking to profit from past misconduct of individuals connected with the CMC. The Government looks forward to the outcome of the FCA’s consultation.