SCHEDULEClaims Management Regulations
Conduct of authorised persons
8
1
Regulations shall require the Regulator to prescribe rules for the professional conduct of authorised persons.
2
Regulations under sub-paragraph (1) shall include provision—
a
about the manner in which rules are to be prepared and published (which may, in particular, include provision requiring—
i
consultation;
ii
the submission of a draft to the Secretary of State for approval);
b
about the consequences of failure to comply with the rules (which may, in particular, include—
i
provision for rules to be treated as conditions of authorisations;
F2ia
provision enabling the Regulator to require an authorised person to pay a penalty;
ii
provision enabling the Regulator to impose conditions on, suspend or cancel authorisations).
9
1
Regulations shall enable the Regulator to issue one or more codes of practice about the professional conduct of authorised persons.
2
Regulations under sub-paragraph (1) shall include provision—
a
about the manner in which a code is to be prepared and published (which may, in particular, include provision requiring—
i
consultation;
ii
the submission of a draft to the Secretary of State for approval);
b
about the consequences of failure to comply with a code (which may, in particular—
i
provide for compliance with a code to be treated as a condition of authorisations;
F3ia
enable the Regulator to require an authorised person to pay a penalty;
ii
enable the Regulator to impose conditions on, suspend or cancel authorisations).
10
1
Regulations shall provide for the Regulator to investigate complaints about the professional conduct of an authorised person.
2
Regulations under sub-paragraph (1) shall enable the Regulator to—
a
impose conditions on a person's authorisation;
b
suspend a person's authorisation;
c
cancel a person's authorisation.
F13
Regulations under sub-paragraph (1) may enable the Regulator to require an authorised person to pay a penalty.
11
1
Regulations may require, or permit the Regulator to require, an authorised person to take out a policy of professional indemnity insurance in respect of his actions in the course of providing or purporting to provide regulated claims management services.
2
Regulations under sub-paragraph (1) may, in particular—
a
make provision about the level or nature of insurance cover to be provided by the policy;
b
include provision about failure to comply (which may, in particular, provide for compliance to be treated as a condition of authorisations or enable the Regulator F4to require the payment of a penalty by an authorised person or to impose conditions on, suspend or cancel authorisations).
12
1
Regulations may require the Regulator to establish a scheme to compensate a client of an authorised person where—
a
money is paid to the authorised person in complete or partial satisfaction of the client's claim, and
b
the client is unable to obtain all or part of the money because the authorised person becomes insolvent or is otherwise unable or unwilling to pay.
2
In particular, regulations may make provision—
a
about the purchase of bonds or other forms of insurance or indemnity;
b
about the funding of the scheme (which may include the application of part of fees charged in accordance with paragraph 7 and may not include payments, or other financial assistance, by a Minister of the Crown);
c
about procedure in connection with compensation (including criteria to be applied);
d
about the amount of compensation.