Financial Guidance and Claims Act 2018

Overview of the Act

1. The Act ensures that members of the public are able to access free and impartial money guidance, pensions guidance and debt advice. It also ensures that they are able to access high-quality claims handling services by strengthening the regulation of claims management companies.
2. To enable this the Act makes provision for the following:
   1. Creation of a single financial guidance body and provision for the funding of debt advice in the devolved administrations
   2. Transfer of claims management regulation from the Claims Management Regulation Unit in the Ministry of Justice to the Financial Conduct Authority, as well as measures to restrict fees charged for claims management services (unless prior consent has been given)
3. The Act also makes provision for two connected purposes:
   1. Creation of a debt respite scheme (also known as a ‘Breathing Space’ scheme) by secondary regulations
   2. Introduction of a ban on cold-calling by secondary regulations
4. Regulations to create a debt respite scheme may only be made by the Secretary of State following receipt of advice on this matter from the single financial guidance body.