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<p>A number of reforms have or are being made to strengthen the effectiveness of regulation
of claims management companies (CMCs). These include a ban on CMCs offering financial
rewards or similar benefits to potential claimants as an inducement to make a claim;
the publication of CMCs under investigation and subject to enforcement action; key
changes to the conduct rules to ensure that claims are substantiated before being
pursued and any data received through telemarketing is legally obtained; the appointment
of the first two independent non-executive board members to the executive-led Claims
Management Regulation Board to provide a greater element of external challenge; expanding
the Regulator’s enforcement tools with a new power to impose financial penalties for
conduct breaches; and bringing consumer complaints against CMCs within the remit of
the Legal Ombudsman. The Government is committed to improving the ability to root
out and punish bad practices by CMCs, better protect the consumers who use their services
or are subjected to their marketing practices; and to help organisations that are
on the receiving end of high volumes of unsubstantiated claims.</p>
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