Claims management companies (CMCs) - so-called ‘ambulance chasers’ - can now register for the temporary permission they need to operate when the FCA takes over regulation.

From April all CMCs set up or serving customers in England, Scotland and Wales will have to be authorised by the FCA to continue operating 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 March to register for temporary permission.

This will allow them to continue operating legally until they are fully FCA-authorised.

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.”