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E+W+S+N.I.

Compensation Act 2006

2006 CHAPTER 29

An Act to specify certain factors that may be taken into account by a court determining a claim in negligence or breach of statutory duty; to make provision about damages for mesothelioma; and to make provision for the regulation of claims management services.

[25th July 2006]

Be it enacted by the Queen's most Excellent Majesty, by and with the advice and consent of the Lords Spiritual and Temporal, and Commons, in this present Parliament assembled, and by the authority of the same, as follows:—

Part 1 E+W+S+N.I.Standard of care

1Deterrent effect of potential liabilityE+W

A court considering a claim in negligence or breach of statutory duty may, in determining whether the defendant should have taken particular steps to meet a standard of care (whether by taking precautions against a risk or otherwise), have regard to whether a requirement to take those steps might—

(a)prevent a desirable activity from being undertaken at all, to a particular extent or in a particular way, or

(b)discourage persons from undertaking functions in connection with a desirable activity.

2Apologies, offers of treatment or other redressE+W

An apology, an offer of treatment or other redress, shall not of itself amount to an admission of negligence or breach of statutory duty.

3Mesothelioma: damagesE+W+S+N.I.

(1)This section applies where—

(a)a person (“the responsible person”) has negligently or in breach of statutory duty caused or permitted another person (“the victim”) to be exposed to asbestos,

(b)the victim has contracted mesothelioma as a result of exposure to asbestos,

(c)because of the nature of mesothelioma and the state of medical science, it is not possible to determine with certainty whether it was the exposure mentioned in paragraph (a) or another exposure which caused the victim to become ill, and

(d)the responsible person is liable in tort, by virtue of the exposure mentioned in paragraph (a), in connection with damage caused to the victim by the disease (whether by reason of having materially increased a risk or for any other reason).

(2)The responsible person shall be liable—

(a)in respect of the whole of the damage caused to the victim by the disease (irrespective of whether the victim was also exposed to asbestos—

(i)other than by the responsible person, whether or not in circumstances in which another person has liability in tort, or

(ii)by the responsible person in circumstances in which he has no liability in tort), and

(b)jointly and severally with any other responsible person.

(3)Subsection (2) does not prevent—

(a)one responsible person from claiming a contribution from another, or

(b)a finding of contributory negligence.

(4)In determining the extent of contributions of different responsible persons in accordance with subsection (3)(a), a court shall have regard to the relative lengths of the periods of exposure for which each was responsible; but this subsection shall not apply—

(a)if or to the extent that responsible persons agree to apportion responsibility amongst themselves on some other basis, or

(b)if or to the extent that the court thinks that another basis for determining contributions is more appropriate in the circumstances of a particular case.

(5)In subsection (1) the reference to causing or permitting a person to be exposed to asbestos includes a reference to failing to protect a person from exposure to asbestos.

(6)In the application of this section to Scotland—

(a)a reference to tort shall be taken as a reference to delict, and

(b)a reference to a court shall be taken to include a reference to a jury.

(7)The Treasury may make regulations about the provision of compensation to a responsible person where—

(a)he claims, or would claim, a contribution from another responsible person in accordance with subsection (3)(a), but

(b)he is unable or likely to be unable to obtain the contribution, because an insurer of the other responsible person is unable or likely to be unable to satisfy the claim for a contribution.

(8)The regulations may, in particular—

(a)replicate or apply (with or without modification) a provision of the Financial Services Compensation Scheme;

(b)replicate or apply (with or without modification) a transitional compensation provision;

(c)provide for a specified person to assess and pay compensation;

(d)provide for expenses incurred (including the payment of compensation) to be met out of levies collected in accordance with section 213(3)(b) of the Financial Services and Markets Act 2000 (c. 8) (the Financial Services Compensation Scheme);

(e)modify the effect of a transitional compensation provision;

(f)enable the Financial Services Authority to amend the Financial Services Compensation Scheme;

(g)modify the Financial Services and Markets Act 2000 in its application to an amendment pursuant to paragraph (f);

(h)make, or require the making of, provision for the making of a claim by a responsible person for compensation whether or not he has already satisfied claims in tort against him;

(i)make, or require the making of, provision which has effect in relation to claims for contributions made on or after the date on which this Act is passed.

(9)Provision made by virtue of subsection (8)(a) shall cease to have effect when the Financial Services Compensation Scheme is amended by the Financial Services Authority by virtue of subsection (8)(f).

(10)In subsections (7) and (8)—

(a)a reference to a responsible person includes a reference to an insurer of a responsible person, and

(b)transitional compensation provision” means a provision of an enactment which is made under the Financial Services and Markets Act 2000 and—

(i)preserves the effect of the Policyholders Protection Act 1975 (c. 75), or

(ii)applies the Financial Services Compensation Scheme in relation to matters arising before its establishment.

(11)Regulations under subsection (7)—

(a)may include consequential or incidental provision,

(b)may make provision which has effect generally or only in relation to specified cases or circumstances,

(c)may make different provision for different cases or circumstances,

(d)shall be made by statutory instrument, and

(e)may not be made unless a draft has been laid before and approved by resolution of each House of Parliament.

Part 2 E+WClaims Management Services

4Provision of regulated claims management servicesE+W

(1)A person may not provide regulated claims management services unless—

(a)he is an authorised person,

(b)he is an exempt person,

(c)the requirement for authorisation has been waived in relation to him in accordance with regulations under section 9, or

(d)he is an individual acting otherwise than in the course of a business.

(2)In this Part—

(a)authorised person” means a person authorised by the Regulator under section 5(1)(a),

(b)claims management services” means advice or other services in relation to the making of a claim,

(c)claim” means a claim for compensation, restitution, repayment or any other remedy or relief in respect of loss or damage or in respect of an obligation, whether the claim is made or could be made—

(i)by way of legal proceedings,

(ii)in accordance with a scheme of regulation (whether voluntary or compulsory), or

(iii)in pursuance of a voluntary undertaking,

(d)exempt person” has the meaning given by section 6(5), and

(e)services are regulated if they are—

(i)of a kind prescribed by order of the Secretary of State, or

(ii)provided in cases or circumstances of a kind prescribed by order of the Secretary of State.

(3)For the purposes of this section—

(a)a reference to the provision of services includes, in particular, a reference to—

(i)the provision of financial services or assistance,

(ii)the provision of services by way of or in relation to legal representation,

(iii)referring or introducing one person to another, and

(iv)making inquiries, and

(b)a person does not provide claims management services by reason only of giving, or preparing to give, evidence (whether or not expert evidence).

(4)For the purposes of subsection (1)(d) an individual acts in the course of a business if, in particular—

(a)he acts in the course of an employment, or

(b)he otherwise receives or hopes to receive money or money's worth as a result of his action.

(5)The Secretary of State may by order provide that a claim for a specified benefit shall be treated as a claim for the purposes of this Part.

(6)The Secretary of State may specify a benefit under subsection (5) only if it appears to him to be a United Kingdom social security benefit designed to provide compensation for industrial injury.

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Modifications etc. (not altering text)

Commencement Information

I1S. 4 wholly in force; s. 4 not in force at Royal Assent see s. 16; s. 4(2)(3)(5)(6) in force (1.12.2006) by S.I. 2006/3005, art. 3; s. 4(1)(4) in force at 23. 4.2007 by S.I. 2007/922, art. 3

5The RegulatorE+W

(1)The Secretary of State may by order designate a person (“the Regulator”)—

(a)to authorise persons to provide regulated claims management services,

(b)to regulate the conduct of authorised persons, and

(c)to exercise such other functions as are conferred on the Regulator by or under this Part.

(2)The Secretary of State may designate a person only if satisfied that the person—

(a)is competent to perform the functions of the Regulator,

(b)will make arrangements to avoid any conflict of interest between the person's functions as Regulator and any other functions, and

(c)will promote the interests of persons using regulated claims management services (including, in particular, by—

(i)setting and monitoring standards of competence and professional conduct for persons providing regulated claims management services,

(ii)promoting good practice by persons providing regulated claims management services, in particular in relation to the provision of information about charges and other matters to persons using or considering using the services,

(iii)promoting practices likely to facilitate competition between different providers of regulated claims management services, and

(iv)ensuring that arrangements are made for the protection of persons using regulated claims management services (including arrangements for the handling of complaints about the conduct of authorised persons)).

(3)F1. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

(4)The Regulator shall—

(a)comply with any directions given to him by the Secretary of State;

(b)have regard to any guidance given to him by the Secretary of State;

(c)F2. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

(d)try to meet any targets set for him by the Secretary of State;

(e)provide the Secretary of State with any report or information requested (but this paragraph does not require or permit disclosure of information in contravention of any other enactment).

(5)F3. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

(6)The Secretary of State may pay grants to the Regulator (which may be on terms or conditions, including terms and conditions as to repayment with or without interest).

(7)A reference in this Part to the Regulator includes a reference to a person acting on behalf of the Regulator or with his authority.

(8)The Secretary of State may by order revoke a person's designation under subsection (1).

(9)While no person is designated under subsection (1) the Secretary of State shall exercise functions of the Regulator.

(10)The Secretary of State may by order transfer (whether for a period of time specified in the order or otherwise) a function of the Regulator to the Secretary of State.

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Amendments (Textual)

F1S. 5(3) repealed (1.1.2010) by Legal Services Act 2007 (c. 29), ss. 187, 210, 211, Sch. 19 para. 3(4), Sch. 23 (with ss. 29, 192, 193) (as amended by 2009 c. 25, Sch. 21 para. 97, Sch. 23 Pt. 9); S.I. 2009/3250, {art. 2(i)(xii) (with arts. 6, 9)}

F2S. 5(4)(c) repealed (1.1.2010) by Legal Services Act 2007 (c. 29), ss. 187, 210, 211, Sch. 19 para. 3(5)(b), Sch. 23 (with ss. 29, 192, 193) (as amended by 2009 c. 25, Sch. 21 para. 97, Sch. 23 Pt. 9); S.I. 2009/3250, {art. 2(i)(xii) (with arts. 6, 9)}

F3S. 5(5) repealed (1.1.2010) by Legal Services Act 2007 (c. 29), ss. 210, 211, Sch. 23 (with ss. 29, 192, 193) (as amended by 2009 c. 25, Sch. 21 para. 97, Sch. 23 Pt. 9); S.I. 2009/3250, {art. 2(i)(xii) (with arts. 6, 9)}

6ExemptionsE+W

(1)The Secretary of State may by order provide that section 4(1) shall not prevent the provision of regulated claims management services by a person who is a member of a specified body.

(2)The Secretary of State may by order provide that section 4(1) shall not prevent the provision of regulated claims management services—

(a)by a specified person or class of person,

(b)in specified circumstances, or

(c)by a specified person or class of person in specified circumstances.

(3)Provision by virtue of subsection (1) or (2) may be expressed to have effect subject to compliance with specified conditions.

(4)Section 4(1) shall not prevent the provision of regulated claims management services by a person who is established or appointed by virtue of an enactment.

(5)For the purposes of this Part a person is “exempt” if, or in so far as, section 4(1) does not, by virtue of this section, prevent him from providing regulated claims management services.

7Enforcement: offenceE+W

(1)A person commits an offence if he contravenes section 4(1).

(2)A person who is guilty of an offence under subsection (1) shall be liable—

(a)on conviction on indictment—

(i)to imprisonment for a term not exceeding two years,

(ii)to a fine, or

(iii)to both, or

(b)on summary conviction—

(i)to imprisonment for a term not exceeding [F412 months]F4,

(ii)to a fine not exceeding [F5the statutory maximum]F5, or

(iii)to both.

[F6(3)In relation to an offence committed before the commencement of section 154(1) of the Criminal Justice Act 2003 the reference in subsection (2)(b)(i) to 12 months is to be read as a reference to 6 months.F6]

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Amendments (Textual)

F4Words in s. 7(2)(b)(i) substituted (7.3.2008) by Legal Services Act 2007 (c. 29), ss. 187, 211, Sch. 19 para. 5(2)(a) (with ss. 29,192,193); S.I. 2008/222, art. 2(l)

F5Words in s. 7(2)(b)(ii) substituted (7.3.2008) by Legal Services Act 2007 (c. 29), ss. 187, 211, Sch. 19 para. 5(2)(b) (with ss. 29,192,193); S.I. 2008/222, art. 2(l)

8Enforcement: the RegulatorE+W

(1)The Regulator may apply to the court for an injunction restraining a person from providing regulated claims management services if he is not—

(a)an authorised person,

(b)an exempt person, or

(c)the subject of a waiver in accordance with regulations under section 9.

(2)In subsection (1) “the court” means the High Court or a county court.

(3)The Regulator may—

(a)investigate whether an offence has been committed under this Part;

(b)institute criminal proceedings in respect of an offence under this Part.

(4)For the purpose of investigating whether an offence has been committed under this Part the Regulator may require the provision of information or documents.

(5)On an application by the Regulator a judge of the High Court, Circuit judge or justice of the peace may issue a warrant authorising the Regulator

[F7(a)]F7 to enter and search premises on which a person conducts or is alleged to conduct regulated claims management business, for the purposes of investigating whether an offence has been committed under this Part.[F8, and

(b)to take possession of any written or electronic records found on the search for the purposes of subsection (6).]

F8(6)The Regulator may take copies of written or electronic records found on a search by virtue of subsection (5) for a purpose specified in subsection (3)(a) or (b).

(7)In subsections (4) to (6) a reference to the Regulator includes a reference to a person authorised by him in writing.

(8)The Secretary of State shall make regulations—

(a)specifying matters of which a judge or justice of the peace must be satisfied, or to which he must have regard, before issuing a warrant under subsection (5), and

(b)regulating the exercise of a power under or by virtue of subsection (4) or (5) (whether by restricting the circumstances in which a power may be exercised, by specifying conditions to be complied with in the exercise of a power, or otherwise).

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Amendments (Textual)

Commencement Information

I2S. 8 wholly in force; s. 8 not in force at Royal Assent see s. 16; s. 8(8) in force (1.12.2006) by S.I. 2006/3005, art. 3; s. 8(1)-(7) in force at 23. 4.2007 by S.I. 2007/922, art. 3

9RegulationsE+W

(1)The Secretary of State shall make regulations about—

(a)authorisations under section 5(1);

(b)the functions of the Regulator.

(2)The Schedule specifies particular provision that may be made by the regulations.

(3)Transitional provision of regulations under this section may, in particular, make provision about the extent to which functions under this Part or under the regulations may be exercised in respect of matters arising before the commencement of a provision made by or by virtue of this Part.

10Obstructing the RegulatorE+W

(1)A person commits an offence if without reasonable excuse he obstructs the Regulator in the exercise of a power—

(a)under section 8(4) to (6), or

(b)by virtue of paragraph 14 of the Schedule.

(2)A person who is guilty of an offence under subsection (1) shall be liable on summary conviction to a fine not exceeding level 5 on the standard scale.

11Pretending to be authorised, &c.E+W

(1)A person commits an offence if he falsely holds himself out as being—

(a)an authorised person,

(b)an exempt person, or

(c)the subject of a waiver in accordance with regulations under section 9.

(2)A person commits an offence if—

(a)he offers to provide regulated claims management services, and

(b)provision by him of those services would constitute an offence under this Part.

(3)For the purposes of subsection (2) a person offers to provide services if he—

(a)makes an offer to a particular person or class of person,

(b)makes arrangements for an advertisement in which he offers to provide services, or

(c)makes arrangements for an advertisement in which he is described or presented as competent to provide services.

(4)A person who is guilty of an offence under subsection (1) or (2) shall be liable—

(a)on conviction on indictment—

(i)to imprisonment for a term not exceeding two years,

(ii)to a fine, or

(iii)to both, or

(b)on summary conviction—

(i)to imprisonment for a term not exceeding [F912 months]F9,

(ii)to a fine not exceeding [F10the statutory maximum]F10, or

(iii)to both.

(5)Where a person commits an offence under this section by causing material to be displayed or made accessible, he shall be treated as committing the offence on each day during any part of which the material is displayed or made accessible.

[F11(6)In relation to an offence committed before the commencement of section 154(1) of the Criminal Justice Act 2003 the reference in subsection (4)(b)(i) to 12 months is to be read as a reference to 6 months.F11]

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Amendments (Textual)

12The Claims Management Services TribunalE+W

F12. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

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Amendments (Textual)

13Appeals and references to TribunalE+W

(1)A person may appeal to the [F13 First-tier Tribunal (“the Tribunal”)]F13 if the Regulator—

(a)refuses the person's application for authorisation,

(b)grants the person authorisation on terms or subject to conditions,

(c)imposes conditions on the person's authorisation,

(d)suspends the person's authorisation, or

(e)cancels the person's authorisation.

(2)The Regulator may refer to the Tribunal (with or without findings of fact or recommendations)—

(a)a complaint about the professional conduct of an authorised person, or

(b)the question whether an authorised person has complied with a rule of professional conduct.

(3)On a reference or appeal under this section the Tribunal—

(a)may take any decision on an application for authorisation that the Regulator could have taken;

(b)may impose or remove conditions on a person's authorisation;

(c)may suspend a person's authorisation;

(d)may cancel a person's authorisation;

(e)may remit a matter to the Regulator;

(f)may not award costs.

[F14(3A)In the case of appeals under subsection (1), Tribunal Procedure Rules—

(a)shall include provision for the suspension of decisions of the Regulator while an appeal could be brought or is pending;

(b)shall include provision about the making of interim orders;

(c)shall enable the Tribunal to suspend or further suspend (wholly or partly) the effect of a decision of the Regulator;

(d)shall permit the Regulator to apply for the termination of the suspension of a decision made by the Regulator.]

F14(4)F15. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

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Amendments (Textual)

Commencement Information

I3S. 13 partly in force; s. 13 not in force at Royal Assent see s. 16; s. 13(1)(3)(4) in force (23.1.2007) by S.I. 2007/94, art. 3

14InterpretationE+W

In this Part—

  • action” includes omission,

  • authorised person” has the meaning given by section 4,

  • claim” has the meaning given by section 4,

  • claims management services” has the meaning given by section 4,

  • exempt person” has the meaning given by section 6(5),

  • regulated claims management services” shall be construed in accordance with section 4(2)(e),

  • specified”, in relation to an order or regulations, means specified in the order or regulations, and

  • the Regulator” means (subject to section 5(7)) the person designated under section 5(1) or, where no person is designated or in so far as is necessary having regard to any order under section 5(10), the Secretary of State.

15Orders and regulationsE+W

(1)An order or regulations under this Part—

(a)may make provision that applies generally or only in specified cases or circumstances,

(b)may make different provision for different cases or circumstances, and

(c)may include transitional, incidental or consequential provision.

(2)An order or regulations under this Part shall be made by statutory instrument.

(3)An order under section 4(2)(e)—

(a)may not be made unless the Secretary of State has consulted—

(i)the Office of Fair Trading, and

(ii)such other persons as he thinks appropriate, and

(b)may not be made unless a draft has been laid before and approved by resolution of each House of Parliament.

(4)An order under section 4(5) may not be made unless a draft has been laid before, and approved by resolution of, each House of Parliament.

(5)An order under section 5 may not be made unless a draft has been laid before, and approved by resolution of, each House of Parliament.

(6)F16. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

(7)The first order made under section 6 may not be made unless a draft has been laid before, and approved by resolution of, each House of Parliament.

(8)An order under section 6 which has the effect of removing or restricting an exemption from section 4(1) may not be made unless a draft has been laid before, and approved by resolution of, each House of Parliament.

(9)Any other order under section 6 shall be subject to annulment in pursuance of a resolution of either House of Parliament.

(10)Regulations under section 8 or 9 may not be made unless a draft has been laid before, and approved by resolution of, each House of Parliament.

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Amendments (Textual)

Part 3 E+W+S+N.I.General

16CommencementE+W+S+N.I.

(1)The preceding provisions of this Act, other than sections 1, 2 and 3, shall come into force in accordance with provision made by order of the Secretary of State.

(2)An order under subsection (1)—

(a)may make provision generally or only for specified purposes,

(b)may make different provision for different purposes,

(c)may make transitional, consequential or incidental provision, and

(d)shall be made by statutory instrument.

(3)Section 3 shall be treated as having always had effect.

(4)But the section shall have no effect in relation to—

(a)a claim which is settled before 3rd May 2006 (whether or not legal proceedings in relation to the claim have been instituted), or

(b)legal proceedings which are determined before that date.

(5)Where a claim is settled on or after that date and before the date on which this Act is passed, a party to the settlement may apply to a relevant court to have the settlement varied; and—

(a)a court is a relevant court for that purpose if it had, or would have had, jurisdiction to determine the claim by way of legal proceedings,

(b)an application shall be brought as an application in, or by way of, proceedings on the claim, and

(c)a court to which an application is made shall vary the settlement to such extent (if any) as appears appropriate to reflect the effect of section 3.

(6)Where legal proceedings are determined on or after that date and before the date on which this Act is passed, a party to the proceedings may apply to the court to vary the determination; and—

(a)the court” means the court which determined the proceedings,

(b)the application shall be treated as an application in the proceedings, and

(c)the court shall vary the determination to such extent (if any) as appears appropriate to reflect the effect of section 3.

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Subordinate Legislation Made

P1S. 16(1) power partly exercised: 1.12.2006 appointed for specified provisions by {S.I. 2006/3005}, art. 3; 23.1.2007 for specified provisions by {S.I. 2007/94}, art. 3; 23.4.2007 for specified provisions by {S.I. 2007/922}, art. 3

17ExtentE+W

(1)This Act shall extend to England and Wales only.

(2)But section 3 (and section 16(3) to (6)) shall extend to—

(a)England and Wales,

(b)Scotland, and

(c)Northern Ireland.

18Short titleE+W

This Act may be cited as the Compensation Act 2006.

Section 9

SCHEDULEE+WClaims Management Regulations

IntroductionE+W

1In this Schedule “regulations” means regulations under section 9.E+W

2Regulations made by virtue of a provision of this Schedule may confer a discretion on the Regulator.E+W

Waiver of requirement for authorisationE+W

3(1)Regulations may permit the Regulator to waive the requirement for authorisation, as mentioned in section 4(1)(c), in specified cases or circumstances.E+W

(2)Regulations by virtue of this sub-paragraph may permit waiver in relation to a person only—

(a)if the Secretary of State intends to exempt the person under section 6, and

(b)for a single period not exceeding six months.

(3)The regulations may, in particular, permit or require the Regulator to provide for waiver to be subject to a condition of a kind specified in the regulations.

Grant of authorisationsE+W

4(1)Regulations shall prescribe the procedure for applying to the Regulator for authorisation.E+W

(2)Regulations may, in particular, require the provision of information or documents relating to the applicant or to any person who appears to the Regulator to be connected with the applicant.

5(1)Regulations shall require the Regulator not to grant an application for authorisation unless satisfied of the applicant's competence and suitability to provide regulated claims management services of the kind to which the application relates.E+W

(2)For that purpose the Regulator shall apply such criteria, and have regard to such matters, as the regulations shall specify.

(3)Regulations by virtue of sub-paragraph (2) may, in particular—

(a)refer to a provision of directions, guidance or a code given or issued under section 5(4);

(b)relate to persons who are or are expected to be employed or engaged by, or otherwise connected with, the applicant;

(c)relate to—

(i)criminal records;

(ii)proceedings in any court or tribunal;

(iii)proceedings of a body exercising functions in relation to a trade or profession;

(iv)financial circumstances;

(v)management structure;

(vi)actual or proposed connections or arrangements with other persons;

(vii)qualifications;

(viii)actual or proposed arrangements for training;

(ix)arrangements for accounting;

(x)practice or proposed practice in relation to the provision of information about fees;

(xi)arrangements or proposed arrangements for holding clients' money;

(xii)arrangements or proposed arrangements for insurance.

6Regulations may—E+W

(a)provide for authorisation to be on specified terms or subject to compliance with specified conditions;

(b)permit the Regulator to grant authorisation on terms or subject to conditions;

(c)permit the Regulator to grant an application for authorisation only to a specified extent or only in relation to specified matters, cases or circumstances.

7Regulations may—E+W

(a)enable the Regulator to charge—

(i)fees in connection with applications for, or the grant of, authorisation;

(ii)periodic fees for authorised persons;

(b)specify the consequences of failure to pay fees;

(c)permit the charging of different fees for different cases or circumstances (which may, in particular, be defined wholly or partly by reference to turnover or other criteria relating to an authorised person's business);

(d)permit the waiver, reduction or repayment of fees in specified circumstances;

(e)provide for the amount of fees to be prescribed or controlled by the Secretary of State;

(f)make provision for the manner in which fees are to be accounted for;

(g)make provision for the application of income from fees (which may, in respect of a time when the Secretary of State is exercising functions of the Regulator under section 5(9) or (10), include provision permitting or requiring payment into the Consolidated Fund).

Conduct of authorised personsE+W

8(1)Regulations shall require the Regulator to prescribe rules for the professional conduct of authorised persons.E+W

(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;

(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.E+W

(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;

(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.E+W

(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.

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.E+W

(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 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—E+W

(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.

EnforcementE+W

13Regulations may permit or require the Regulator to take action of a specified kind for the purpose of assessing compliance with terms or conditions of authorisations.E+W

14(1)Regulations may enable the Regulator, for the purpose of investigating a complaint about the activities of an authorised person or for the purpose of assessing compliance with terms and conditions of an authorisation, to require the provision of information or documents.E+W

(2)The Regulations may provide that on an application by the Regulator a judge of the High Court, Circuit judge or justice of the peace may issue a warrant authorising the Regulator

[F17(a)to enter and search premises on which a person conducts or is alleged to conduct regulated claims management business, for the purposes of—

(i)investigating a complaint about the activities of an authorised person, or

(ii)assessing compliance with terms and conditions of an authorisation, and

(b)to take possession of written or electronic records found on the search for the purposes of taking copies in accordance with regulations under sub-paragraph (3).]

F17(3)Regulations may enable the Regulator to take copies of written or electronic records found on a search by virtue of sub-paragraph (2) for a purpose specified in that subsection.

(4)Regulations may enable the Regulator to impose conditions on, suspend or cancel a person's authorisation if—

(a)a requirement imposed by virtue of sub-paragraph (1) is not complied with, or

(b)an attempt to exercise a power by virtue of sub-paragraph (2) or (3) is obstructed.

(5)In this paragraph a reference to the Regulator includes a reference to a person authorised by him in writing.

(6)Regulations shall—

(a)specify matters of which a judge or justice of the peace must be satisfied, or to which he must have regard, before issuing a warrant under sub-paragraph (2),

(b)regulate the exercise of a power under or by virtue of sub-paragraph (1), (2) or (3) (whether by restricting the circumstances in which a power may be exercised, by specifying conditions to be complied with in the exercise of a power, or otherwise).

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Annotations are used to give authority for changes and other effects on the legislation you are viewing and to convey editorial information. They appear at the foot of the relevant provision or under the associated heading. Annotations are categorised by annotation type, such as F-notes for textual amendments and I-notes for commencement information (a full list can be found in the Editorial Practice Guide). Each annotation is identified by a sequential reference number. For F-notes, M-notes and X-notes, the number also appears in bold superscript at the relevant location in the text. All annotations contain links to the affecting legislation.

Amendments (Textual)

15Regulations may make provision about the exercise by the Regulator of a power under section 8.E+W

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