EXPLANATORY NOTE

(This note is not part of the Regulations)

These Regulations are made in consequence of the commencement of section 161 of the Legal Services Act 2007 (c. 29) (“the 2007 Act”), which confers responsibility on the Legal Ombudsman for considering service complaints about companies regulated by the Claims Management Services Regulator under Part 2 of the Compensation Act 2006 (c. 29) (“the 2006 Act”). By virtue of section 5(9) of the 2006 Act the Secretary of State exercises the functions of the Claims Management Services Regulator (“the Regulator”).

These regulations amend the Compensation (Claims Management Services) Regulations 2006 (S.I. 2006/3322) (“the 2006 Regulations”) to ensure that those regulations are compatible with the legislative requirements imposed by Part 6 of the 2007 Act in relation to the ombudsman scheme provided for by that Part.

Regulation 2 of these Regulations omits regulations 27 and 28 of the 2006 Regulations which deal with redress and complaint handling, as that will now be dealt with in accordance with the ombudsman scheme, and amends regulation 29 to make it clear that in giving directions about future complaints the Regulator must not direct an authorised person to make redress. Regulation 2 also inserts a new provision into the 2006 Regulations requiring the Regulator to share information with the Legal Ombudsman, its board and staff where this is necessary in order for the discharge of their functions under the 2007 Act.

An impact assessment has not been prepared for this instrument as no impact on the private or voluntary sector is foreseen.