Legislation

Brief details are given here of the legislation which establishes claims management regulation: the Compensation Act 2006 and the Regulations and Orders made under the Act.

The rules made by the Claims Management Regulator, including those which govern the conduct of authorised claims management businesses.

Compensation Act 2006
The regulatory regime for claims management services has been established under Part 2 of the Compensation Act 2006.  A person may not provide claims management services unless he is authorised or exempt.

• Compensation Act 2006

The Final Regulatory Impact Assessment, published in November 2005, includes information about the background to the legislation. 

• Final Regulatory Impact Assessment

Regulations
Compensation (Claims Management Services) Regulations 2006

These Regulations cover –

• Arrangements in respect of grant of authorisation.

• Arrangements for waiving the requirement for authorisation.

• Arrangements for setting fees.

• Provision for the Regulator to require authorised persons to have professional indemnity insurance.

• Provision for the Regulator to make rules for the professional conduct of authorised persons.

• Arrangements for complaints handling.

• Provision for the Regulator to audit or investigate businesses.

Compensation (Claims Management Services) (Amendment) Regulations 2008
These Regulations set out the requirements for businesses representing clients in the personal injury sector to obtain professional indemnity insurance.

Orders
Compensation (Regulated Claims Management Services) Order 2006
This Order defines the scope of regulation in terms of the services and kinds of claim that are covered.
A wide range of services is covered including seeking out potential claimants, advising claimants, making representations and carrying out investigations. The sectors that are covered are –

• Personal injury.

• Criminal injuries compensation.

• Employment matters.

• Housing disrepair.

• Financial products and services.

• Industrial injury disablement benefits.

Compensation (Specification of Benefits) Order 2006
This Order provides that a claim for any of a number of specified benefits, (collectively called industrial injury disablement benefits), shall be treated as a claim for the purposes of Part 2 of the Compensation Act 2006.

Compensation (Exemptions) Order 2007

Compensation (Exemptions) Amendment (No 1) Order 2007
These Orders set out the activities and businesses that are exempt from the requirement to seek authorisation to provide regulated claims management services.
The exemptions are explained in more detail in the:

Who needs to be authorised under the Compensation Act 2006 Guidance Note.

Commencement Orders
The Compensation Act 2006 (Commencement No 1) Order 2006 
This Order brought into effect on 1 December 2006 section 4 (2), (3), (5) and (6), sections 5 & 6, section 8(8), sections 9, 14 and 15 and the Schedule.

The Compensation Act 2006 (Commencement No 2) Order 2007
This Order brought into effect on 23 January 2007 section 12 and section 13(1), (3) and (4).

The Compensation Act 2006 (Commencement No 3) Order 2007 
This Order brought into effect on 23 April 2007 section 4 (1) and (4), section 7, section 8 (1-7), section 10 and section 11.

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Publications

Please contact us if you would like any of our documents in another language or format.

Rules for Authorised Claims Management Businesses

Information on the Rules that authorised claims management businesses must comply with is available on the Conduct of Business page.

Other Rules and Codes of Practice

• Trade Union Code of Practice, November 2006

Enforcement

• Claims Management Regulation - Enforcement Policy (PDF 0.7Mb)
  

Policy and analysis

• Claims Management Regulation – Publication of Regulatory Action Policy
• Claims Management Regulation - Annual Report 2009/2010 
• Claims Management Regulation - Impact of Regulation third Year Assessment 
• Claims Management Regulation Annual Review 2008/2009, July 2009
• Impact of Regulation Assessment - Update, July 2009
• Claims Management Regulation Annual Review 2007/2008
• Impact of Regulation – One Year Assessment, April 2008
• Impact of Regulation, August 2007
• The Claims management regulation Baseline study, April 2007

Consultations

• Proposals for amendments to the Conduct of Authorised Persons Rules consultation and consultation response
  
• Claims Management Regulation Consultation on Fees Determination 2012/13 (closed 23 December 2011)
• Claims mangement regulation proposal to amend rule 6(B) of the conduct rules
• Claims management regulation - regulation fees paid by claims management businesses
• OFT Consultation on S.77, 78 & 79 Consumer Credit Act 1974 Guidance (closed 21 April 2010)
• Claims Management Regulation Consultation on the Fees Determination 2010-2011
  Earlier closed consultations are listed in the Archive.