PIMFA urges higher CMC FOS fees to protect financial services firms

FOS urged to levy a higher fee to Claims Management Companies

Sahar Nazir
clock • 1 min read

The Personal Investment Management & Financial Advice Association (PIMFA) has urged the Financial Ombudsman Service (FOS) to level the playing field between Claims Management Companies (CMCs) and financial services providers.

The trade association argued that whilst the decision to levy a fee to CMCs is welcome, "it will not achieve the policy objectives set out by the government when this power was given to the FOS". This came in response to the FOS consultation ‘Charging Claims Management Companies and other Professional Representatives'. PIMFA argued that a case fee of £250 for CMCs and Professional Representatives "does not act as a disincentive to bring forward targeted block cases against firms that have little chance of success". In its response, PIMFA said the FOS should review its approach and ...

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