Large claims management companies (CMCs) have convinced the government to reinstate a cap on the fees they have to pay for regulation.
The Ministry of Justice, which regulates CMCs, had planned to remove the annual cap of £30,000 for companies with contractual relationships with clients.
Although the majority of respondents to a consultation agreed with removing the cap entirely, larger CMCs successfully argued for a new cap of £50,000.
An MoJ response said the revised figure struck an ‘appropriate balance’ between meeting regulatory costs and a fair setting of fees.
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