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PIMFA WEEKLY NEWS BULLETIN | 24 May 2021 Dear Nigel,
Welcome to the PIMFA Bulletin; grab a coffee and take 10 minutes to read this week's latest industry news impacting you and your firm.
PIMFA welcomes FCA plans to stop Claims Management Companies from ‘Phoenixing’
PIMFA has welcomed proposals from the FCA that would ban claims management companies from managing FSCS claims where they have a relevant connection to the claim; a practice known as ‘phoenixing’ . PIMFA has called for the practice of phoenixing to be banned for some time, not least in our policy paper published late last year. Simon Harrington, Senior Policy Adviser at PIMFA, said: “This is an extremely welcome intervention from the FCA. As we set out in our paper on FSCS reform last year, it is of the utmost importance that the ways in which firms are able to transfer risk onto the FSCS and exploit for their own potential gain should be reviewed. “This consultation and, we hope, the forthcoming policy statement, is a significant step in addressing this market distortion. While it is step in a much longer journey towards lower levies, it is still extremely welcome and a credit to the FCA that they have listened.”