Context
The FCA is seeking views on the Terms of Reference for a Claims Management Market Study. The Market Study ToR are accompanied by a Market Study Notice. The Study is being undertaken to gather evidence to understand the root causes of practices the FCA has observed by firms in the claims management market and how they impact competition and consumer outcomes. This includes practices the FCA has observed by FCA-regulated claims management companies (CMCs) and lead generators, as well as legal professionals regulated by the Solicitors Regulation Authority (SRA) and other legal regulators. The FCA will be working closely with the SRA as it carries out the market study.
The FCA has also published a blog by Alison Walters, FCA Director of Consumer Finance, titled “Is the claims management market working?”, in which she outlines key concerns in the claims management market, highlighting poor practices by some firms and the actions taken to address them. This provides a useful backdrop to the proposed Market Study.
Key points to note and next actions
The study will inform whether interventions are needed to promote effective competition, support customer choice, and ensure the claims management services market serves consumers in the way the FCA expects.
The work will focus on claims management services provided in relation to financial services and financial products claims, and housing disrepair claims.
The FCA plans to focus on:
- Consumer journey.
- Pricing-related harms.
- Business model incentives.
- Risks created by low financial resilience in CMCs.
- Incentives created by the regulatory landscape.
The FCA plans to issue information requests to firms from June 2026, and expects to share early findings and consult on potential proposals later in 2026. If the FCA finds the market is not working well, it will consider its next steps, which may include:
- using its competition, regulatory, supervisory and enforcement powers; and
- making recommendations to the Government or other bodies, such as the SRA.
Comments should be provided by 19th June 2026, by e-mail to claimsmanagementmarketstudy@fca.org.uk.