‘As a regulator what you’re saying when you resort to price capping is that we’ve been unable to create a marketplace in which the normal market forces of supply and demand lead to healthy competition and pricing that is fair and reasonable for consumers.’
The discussion paper also asks to what level its recommendations should be aligned with previous proposals from The Financial Conduct Authority (FCA) around fee caps for claims management companies.
In relation to these latest proposals, the SRA is continuing to hold discussions to build knowledge and information working with those in the industry.
In a statement on the SRA’s website, Paul Philip, SRA Chief Executive, said: ‘This is an important piece of work for consumers and the firms we regulate. Fees have to be set at a level that means the cost is affordable for people seeking redress, while ensuring that this is still a viable area of work for firms that provide this service for those who need it. So although the number of law firms involved may be small, the impacts for consumers could be significant.
‘I would urge firms currently providing claims management in this area, and others who may be thinking about doing so, to read the discussion paper and let us know what you think.’
A webinar explaining the SRA’s thinking will be held on Wednesday 4th August at 12.30pm. Click here to register.
Views on the discussion paper are invited by 29th September.