posted 3rd September 2025
If you operate or plan to set up a Claims Management Company (CMC) in the UK, obtaining FCA Authorisation is not just a legal requirement – it is essential for building trust with clients and ensuring your business can operate without interruption. Since April 2019, the regulation of claims management services has been transferred to the Financial Conduct Authority (FCA), replacing the previous Ministry of Justice framework.
This means all CMCs must now be FCA-authorised to handle claims in areas such as financial services, personal injury, housing disrepair, and more. At Meridian Legal Services, we specialise in guiding claims management companies through the complex FCA application process. We help you save time, avoid costly mistakes, and get authorised quickly.
Why FCA Authorisation Matters.
The FCA has introduced a much stricter regime compared to the old system. Claims management firms must now demonstrate that they:
- Have a robust business plan and compliance framework.
- Operate with clear governance structures and competent management.
- Treat customers fairly and provide transparent information.
- Hold adequate financial resources and insurance cover.
- Prevent harm to consumers and uphold industry integrity.
Without FCA Authorisation, a CMC cannot legally provide regulated claims management services. Attempting to do so can lead to enforcement action, fines, and criminal liability.
The FCA Application Process.
Applying for FCA Authorisation is detailed and requires careful preparation. Typically, the application involves submitting:
- Regulatory Business Plan – outlining your business model, market, and compliance strategy.
- Compliance Monitoring Programme – showing how you will oversee client handling and staff conduct.
- Financial Projections – proving that your business is financially sustainable.
- Policies & Procedures – covering complaints handling, data protection, anti-money laundering, and more.
The FCA may also conduct interviews and request further evidence. Processing times can take several months, so preparation and expert guidance from Meridian Legal Services is crucial.
Common Challenges for CMCs.
Many claims management companies underestimate the level of detail required in an FCA application. Common pitfalls include:
- Submitting incomplete or unclear documents.
- Failing to demonstrate adequate systems and controls.
- Overlooking financial and compliance requirements.
- Not aligning business practices with the FCA’s Conduct Rules.
These issues often lead to delays, rejections, or additional scrutiny, which can cost your business time and money. Meridian Legal Services will help you avoid these common challenges.
How Meridian Legal Services Can Help.
At Meridian Legal Services, we provide tailored support to ensure your claims management company achieves FCA Authorisation smoothly. Our services include:
- Preparing and reviewing your FCA application pack.
- Drafting policies and compliance frameworks that meet FCA standards.
- Advising on governance, risk management, and financial adequacy.
- Ongoing regulatory support to keep your business compliant post-authorisation.
We understand the challenges CMCs face and work with you every step of the way, ensuring your business is authorised and operates in long-term regulatory compliance.
