The Compensation (Claims Management Services) Regulations 2006

PART 6 Rules and codes of practice

Rules

22.—(1) The Regulator must prescribe, in writing, rules for the professional conduct of authorised persons.

(2) Before prescribing such rules, the Regulator must consult such persons as appear to him to represent the views of persons engaged in the provision of regulated claims management services, and such other organisations, as he considers appropriate.

(3) The rules—

(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 provisions.

(4) The Regulator must not prescribe such rules unless the Secretary of State has approved a draft of the rules.

(5) Paragraph (4) has no effect while the Secretary of State is exercising the functions of the Regulator.

(6) The Regulator must publish the approved rules—

(a) on his website; and

(b) in printed form.

(7) Rules prescribed under paragraph (1) have effect only from the date on which they are published in accordance with sub-paragraph (6)(a).

Matters that the rules may cover

23.  In particular, the rules may make provision regarding—

(a) the giving of notice to clients by an authorised person whose authorisation has been suspended or cancelled, or varied in such a way that the authorised person can no longer provide a regulated claims management service to one or more clients;

(b) the accounting practices to be adopted by authorised persons who hold clients’ money; and

(c) the establishment and operation by authorised persons of schemes for the reception, investigation and rectification of complaints about their professional services.

Codes of practice

24.—(1) The Regulator may issue, by written instrument, a code of practice for the professional conduct of authorised persons or a specified class or group of authorised persons.

(2) A code of practice—

(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 provisions.

(3) Before issuing such a code, the Regulator must consult such persons as appear to him to represent the views of persons engaged in the provision of regulated claims management services, and such other organisations, as he considers appropriate.

(4) The Regulator must not issue a code of practice unless the Secretary of State has approved a draft of the code.

(5) Paragraph (4) has no effect while the Secretary of State is exercising the functions of the Regulator.

(6) The Regulator must publish an approved code of practice—

(a) on his website; and

(b) in printed form.

(7) A code of practice issued under paragraph (1) has effect only from the date on which it is published in accordance with sub-paragraph (6)(a).

Amendment etc of rules or code of practice

25.—(1) The Regulator may amend or revoke rules or a code of practice.

(2) The procedure for amending or revoking rules or a code of practice is the same as the procedure for prescribing rules or issuing such a code(1).

(3) Such an amendment or revocation may include transitional, incidental or consequential provisions.

(4) An amendment or revocation of rules or a code of practice has effect only from the date on which the text of the amendment or revocation is published.

(5) If the Regulator amends rules or a code of practice, the Regulator must, as soon as reasonably practicable, publish, in the ways set out in regulation 22(6) or 24(6), as the case requires, the text of the rules or code as amended.

Charge for supply of copies

26.  The Regulator may make a reasonable charge for supplying a printed copy of rules or a code of practice, or an instrument amending or revoking rules or a code of practice.

Redress

27.—(1) The Regulator may direct an authorised person who has failed to comply with the rules or a code of practice to make redress, in a specified way or form, to a person aggrieved by that failure.

(2) The forms of redress may include, but are not limited to—

(a) an apology;

(b) the re-doing, without charge to the aggrieved person, of work improperly done; or

(c) in a case in which the failure consists of the charging of an unjustifiable fee, the refund of all or part of the fee.

(3) For the purposes of paragraph (2)(c), a fee is unjustifiable if it should not have been charged.

(4) Before giving such a direction, the Regulator—

(a) must notify the authorised person of the proposed direction, and the reasons for giving it;

(b) must give the authorised person a reasonable opportunity to make submissions in relation to the proposed direction; and

(c) must take any such submission into account in deciding whether to give the direction.

(1)

The procedure is set out in regulations 22 and 24 respectively.