Compensation Bill [HL]

House of Commons

Session 2005 - 06
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Other Bills before Parliament

Compensation Bill [HL]

Compensation Bill [HL]
Part 2 — Claims Management Services
8

(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
5
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;
10
(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.
(4)
An authorised person may appeal to the Court of Appeal against a decision of
15
the Tribunal.
13
Interpretation
In this Part—
“action” includes omission,
“authorised person” has the meaning given by section 3,
20
“claim” has the meaning given by section 3,
“claims management services” has the meaning given by section 3,
“exempt person” has the meaning given by section 5(5),
“regulated claims management services” shall be construed in accordance
with section 3(2)(e),
25
“specified”, in relation to an order or regulations, means specified in the
order or regulations, and
“the Regulator” means (subject to section 4(7)) the person designated
under section 4(1) or, where no person is designated or in so far as is
necessary having regard to any order under section 4(10), the Secretary
30
of State.
14
Orders and regulations
(1)
An order or regulations under this Part—
(a)
may make provision that applies generally or only in specified cases or
circumstances,
35
(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 3(2)(e)—
(a)
may not be made unless the Secretary of State has consulted—
40
(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.

Compensation Bill [HL]
Part 3 — General
9

(4)
An order under section 4 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 4(3) may include provision—
(a)
for the appointment of members;
(b)
for funding;
5
(c)
for dissolution (which may include provision enabling the Secretary of
State to make provision for the transfer of property, rights and
liabilities).
(6)
An order under section 5 shall be subject to annulment in pursuance of a
resolution of either House of Parliament.
10
(7)
Regulations under section 7 or 8 may not be made unless a draft has been laid
before, and approved by resolution of, each House of Parliament.
Part 3
General
15
Commencement
15
(1)
The preceding provisions of this Act, other than section 1, 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,
20
(c)
may make transitional, consequential or incidental provision, and
(d)
shall be made by statutory instrument.
16
Extent
This Act shall extend to England and Wales only.
17
Short title
25
(1)
This Act may be cited as the Compensation Act 2006.
(2)
Nothing in this Act shall impose any charge on the people or on public
funds, or vary the amount or incidence of or otherwise alter any such charge
in any manner, or affect the assessment, levying, administration or
application of any money raised by any such charge.
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10
Compensation Bill [HL]
Schedule — Claims Management Regulations

Schedule
Section 8

Claims Management Regulations
Introduction
1
In this Schedule “regulations” means regulations under section 8.
2
Regulations made by virtue of a provision of this Schedule may confer a
5
discretion on the Regulator.
Waiver of requirement for authorisation
3     (1)
Regulations may permit the Regulator to waive the requirement for
authorisation, as mentioned in section 3(1)(c), in specified cases or
circumstances.
10
      (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 5,
and
(b)
for a single period not exceeding six months.
15
      (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 authorisations
4     (1)
Regulations shall prescribe the procedure for applying to the Regulator for
20
authorisation.
      (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
25
authorisation unless satisfied of the applicant’s competence and suitability
to provide regulated claims management services of the kind to which the
application relates.
      (2)
For that purpose the Regulator shall apply such criteria, and have regard to
such matters, as the regulations shall specify.
30
      (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 4(4);
(b)
relate to persons who are or are expected to be employed or engaged
by, or otherwise connected with, the applicant;
35
(c)
relate to—
(i)
criminal records;

Compensation Bill [HL]
Schedule — Claims Management Regulations
11

(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;
5
(vi)
actual or proposed connections or arrangements with other
persons;
(vii)
qualifications;
(viii)
actual or proposed arrangements for training;
(ix)
arrangements for accounting;
10
(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.
15
6
Regulations may—
(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;
20
(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.
7
Regulations may—
(a)
enable the Regulator to charge—
25
(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
30
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;
35
(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
40
of the Regulator under section 4(9) or (10), include provision
permitting or requiring payment into the Consolidated Fund).
Conduct of authorised persons
8     (1)
Regulations shall require the Regulator to prescribe rules for the
professional conduct of authorised persons.
45
      (2)
Regulations under sub-paragraph (1) shall include provision—

Compensation Bill [HL]
Schedule — Claims Management Regulations
12

(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);
5
(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,
10
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
15
(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,
20
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).
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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;
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(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.
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      (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
40
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—
(a)
money is paid to the authorised person in complete or partial
45
satisfaction of the client’s claim, and

Compensation Bill [HL]
Schedule — Claims Management Regulations
13

(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
5
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);
10
(c)
about procedure in connection with compensation (including criteria
to be applied);
(d)
about the amount of compensation.
Enforcement
13
Regulations may permit or require the Regulator to take action of a specified
15
kind for the purpose of assessing compliance with terms or conditions of
authorisations.
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
20
require the provision of information or documents.
      (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 to enter and search premises on which a
person conducts or is alleged to conduct regulated claims management
25
business, for the purpose of—
(a)
investigating a complaint about the activities of an authorised
person, or
(b)
assessing compliance with terms and conditions of an authorisation.
      (3)
Regulations may enable the Regulator to take copies of written or electronic
30
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
35
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.
40
      (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
45
(1), (2) or (3) (whether by restricting the circumstances in which a

Compensation Bill [HL]
Schedule — Claims Management Regulations
14

power may be exercised, by specifying conditions to be complied
with in the exercise of a power, or otherwise).
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Regulations may make provision about the exercise by the Regulator of a
power under section 7.