Wealth management lobby group PIMFA has described the Financial Conduct Authority’s (FCA) proposals to create greater transparency and control costs for consumers that deal with Claims Management Companies (CMC) as “right and proportionate”.

In its response to the FCA consultation on restricting CMC charges PIMFA notes that in the event of a consumer receiving a bad outcome, it is right they should be adequately compensated.

But, the current avenues available to consumers are dominated by companies which often offer poor transparency about the nature of their services and often don’t provide value for money.