CMCOB 8.1 Application and purpose

Threshold Conditions (COND)

Guidance applies with necessary modifications to reflect the Claims Management Order (see Note 1).

Note 1

A firm is treated as having a claims management temporary permission on and after 1 April 2019 to carry on regulated claims management activity under the Claims Management Order if it met the conditions set out in Chapter 5 of Part 3 of that Order at that date. According to article 83(9) of the Claims Management Order section 55B(3) of the Act (The threshold conditions) does not require the FCA to ensure that the firm will satisfy, and continue to satisfy, in relation to regulated claims management activity for which it has a claims management temporary permission, the threshold conditions for which the FCA is responsible. The FCA can, however, exercise its power under section 55J of the Act (variation or cancellation on initiative of regulator) or under section 55L of the Act (imposition of requirements by the regulator) in relation to a firm if, among other things, it appears to the FCA that the firm is failing, or is likely to fail, to satisfy the threshold conditions in relation to the regulated claims management activity for which it has a claims management temporary permission for which the FCA is responsible. The guidance in COND should be read accordingly.

Supervision Manual (SUP)

SUP 6 (Applications to vary and cancel Part 4A permission and to impose, vary or cancel requirements) applies with necessary modifications to reflect Chapters 2 and 5 of Part 3 of the Claims Management Order (see Note 2).

Note 2

If a firm with claims management temporary permission applies to the FCA under section 55A of the Act for permission to carry on a regulated activity or under section 55H or 55I of the Act to vary a permission that the firm has otherwise than by virtue of the Claims Management Order by adding a regulated activity to those to which the permission relates, the application may be treated by the FCA as relating also to some or all of the regulated activities for which the firm has claims management temporary permission.

For a firm with only claims management temporary permission: SUP 15.5.1R, SUP 15.5.2G, SUP 15.5.4R, SUP 15.5.5R are modified so that the words “reasonable advance”, “and the date on which the firm intends to implement the change of name” and “and the date of the change” are omitted.