The Ministry of Justice (MoJ) has been responsible for directly regulating the activities of businesses providing claims management services since April 2007 under Part 2 of the Compensation Act 2006.

The Compensation Act defines claims management services as “advice or other services in relation to the making of a claim”. Secondary legislation defines the scope of regulation including the regulated sectors and the regulated activities subject to the authorisation regime.

Any business providing regulated claims management services in England and Wales is, unless exempt, required to be authorised irrespective of their registered address or location of the business

Regulatory objectives

The regulatory objectives of the claims management regulation regime are:

• Protecting and promoting the interests of consumers;
• Protecting and promoting the public interest;
• Improving standards of competence and conduct of authorised persons;
• Improving access to justice;
• Promoting practices to facilitate competition between different providers • of regulated claims management services.

Who and what we regulate

The claims sectors subject to Compensation Act 2006 regulation are:

• Personal injury;
• Industrial Injuries Disablement Benefit;
• Financial products/services;
• Employment;
• Criminal injuries compensation;
• Housing disrepair.

The types of claims management activities regulated include:

• Advertising for, or seeking out (for example direct marketing) persons who may have a cause of action;
• Advising a claimant or potential claimant in relation to his claim or cause of action;
• Referring details of a claim/claimant or cause of action for a fee to another person;
• Investigating or commissioning investigation of a claim with a view to • using results in pursuit of the claim;
• Representing the claimant.