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12. (1) In this article, “legal practitioner” has the meaning given by article 4(2).
(2) Section 4(1) of the Act does not prevent the provision of the regulated claims management service of referring details of potential claims or potential claimants to another person if—
(a)the person who refers those details (“the introducer”) provides no other regulated claims management service;
(b)the provision of the service is incidental to the introducer’s main business;
(c)the details are referred to authorised persons or legal practitioners or firms of legal practitioners;
(d)the introducer refers such details only to persons of those kinds;
(e)of the cases that the introducer refers to such persons, he is paid, in money or money’s worth, for no more than 25 cases per calendar quarter; and
(f)subject to paragraph (3), the persons to which the details are referred must be satisfied that the introducer obtains those details in a way consistent with the rules prescribed by the Regulator under paragraph 8 of the Schedule to the Act.
(3) Paragraph (2)(f) does not apply in the case of a referral to a legal practitioner or firm of legal practitioners.
Explanatory Memorandum sets out a brief statement of the purpose of a Statutory Instrument and provides information about its policy objective and policy implications. They aim to make the Statutory Instrument accessible to readers who are not legally qualified accompany any Statutory Instrument or Draft Statutory Instrument laid before Parliament from June 2004 onwards.
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