FCA sets out proposals to stop 'particularly egregious' CMC phoenixing

Proposals published today

The Financial Conduct Authority (FCA) has made plans to stop advisers phoenixing into claims management companies (CMC).

The consultation paper, published on Monday (17 May), outlined its proposals for new rules on CMCs. Claims management company phoenixing occurs when an individual from a wound-up firm reopens under a new guise, or appears in connection with a CMC that deals with its old clients, to avoid liabilities of the old firm. The FCA described claims management phoenixing as "particularly egregious". The FCA said consumers will suffer fewer losses if claims management phoenixing was stopped. Where those losses do occur, however, it said some claims can be resolved differently. Therefore, und...