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.