The FCA has revealed more than 600 so-called ‘ambulance chaser’, or claims management companies (CMCs), have registered with the authority.

From next month all CMCs serving customers in England, Scotland and Wales must be authorised by the FCA to continue to operate legally.

Some claim managers, including CMCs that are incorporated in Scotland, and only serve Scottish customers, will be entering regulation for the first time.

CMCs have until the end of this month to register for temporary permission.

If they fail to register with the the regulator before then they will not be able to continue operating.

An FCA warning stated: “Firms should not leave it to the last minute to register to avoid potential problems or delays.

“They will have to demonstrate they meet minimum standards to operate.

“Once registered, CMCs must comply with FCA standards and could face action if they don’t.” 

It added: “We aim to ensure CMCs are trusted providers of high quality, good value services that help customers pursue legitimate claims for redress and benefits the public interest.”

Yesterday the FCA confirmed the number of firms so far registered was 629.