Apply to become a claims management company

Explain where your firm will fit within the market and how your products and services compare to competitors.

This should include:

• an overview of the activity (regulated and unregulated) your firm will carry out, including the types of claim you intend to handle
• how you'll source potential claims/generate leads
• an end-to-end customer journey covering the process and lifecycle of the lead generation and claims processing activity
• what agreements are in place to support the referral/recommendation of potential claims
• any applicable supporting legislation you'll need to comply with, for example:
  • GDPR (General Data Protection Regulations)
  • DPA (Data Protection Act)
  • PECR (the Privacy and Communication (EC Directive) Regulations)
  • the cold calling ban
  • the Legal Aid Sentencing and Punishment of Offenders Act 2012 (LASPO)
  • the referral fee ban
• an overview of the systems and controls in place to ensure that claims are of a high quality, and that the full merits of a case are known 
• how you'll reduce the likelihood that consumers make spurious claims
• how you'll comply with all direct marketing legislation and the consent/opt in-out requirements
• why you're satisfied that your fees and charges represent fair value
• copies of your financial promotions and website content, even where it's in draft, and including both regulated and unregulated content
• a clear explanation of how you'll ensure consumers know the difference between any regulated and unregulated activity you carry out and what this means for them
• copies of any letters or templates you'll send to consumers
• your communication strategies including the type and frequency of communications you'll send
• any fact find surveys or scripts you plan to use
• how many employees your firm will have completing claims management activity, as well as your organisation’s structure and job role responsibilities

You need to make your capital structure clear, ensuring that your funding arrangements are confirmed and evidenced. 

If you plan to hold and control client money alongside any claims management permission, please provide/explain:

• your client money policy and procedures that demonstrate your compliance with all CASS13 requirements, including but not limited to:
  • confirmation of who will oversee and enforce all our client asset requirements at your firm
  • what training and experience this individual has to carry out this function on behalf of the firm
  • what arrangements the firm has made for reconciliation to continue when this individual is absent
  • a copy of the client bank account acknowledgement letter signed by a qualified representative of the bank and the firm

For advice, investigation and representation permission applications:

• how you've calculated your prudential resource requirement where applying for any advice, investigation and representation permission, with evidence that you meet this requirement in line with CMCOB 7.3 in our Handbook
  • we know this is a long chapter but we urge you to read it all in preparation for providing your prudential calculations
• your pre-contract information and customer contract, including terms and conditions (if there's a separate terms document)
• a letter of authority template for each product

If you plan to hold advice, investigation and representation permissions in respect of a personal injury claim you must also:

• provide proof of your Professional Indemnity Insurance (PII)
• ensure your PII meets the requirements of CMCOB 7.4 in our Handbook