Fifty First Report Contents

Instruments of interest

Draft Civil Liability Act 2018 (Financial Conduct Authority) (Whiplash) Regulations 2021

Civil Liability (Specification of Authorised Persons) Regulations 2021 (SI 2021/326)

40.Section 6 of the Civil Liability Act 2018 (“the 2018 Act”) restricts the settlement of whiplash claims without a medical report. In our 49th report25 we commented on the new simplified online system for claiming damages for whiplash injuries and set out concerns raised by the Motor Accident Solicitors Society about the proposed tariff-based approach. These latest two instruments enable the implementation of the restrictions under the 2018 Act: The draft Civil Liability Act 2018 (Financial Conduct Authority) (Whiplash) Regulations 2021 provide the Financial Conduct Authority (FCA) with powers to enforce the ban on pre-medical offers to settle whiplash claims, while SI 2021/326 establishes the authorised persons dealing with whiplash claims to whom the FCA’s regulatory powers will apply. According to HM Treasury, the FCA will have to authorise the persons dealing with whiplash claims.

Money Laundering and Terrorist Financing (Amendment) (High-Risk Countries) Regulations 2021 (SI 2021/392)

41.These Regulations amend the Money Laundering, Terrorist Financing and Transfer of Funds (Information on the Payer) Regulations 2017 (“the MLRs”)26 in relation to business relationships and transactions involving so-called “high-risk third countries”. These countries are currently listed in a Commission Delegated Regulation27 which became retained EU law on 31 December 2020, and businesses must take extra customer due diligence measures when dealing with these countries. Following EU Exit and the end of the Transition Period, this instrument revokes the Commission Delegated Regulation and replaces references to it in the MLRs with reference to a freestanding list of countries in a new Schedule 3ZA to the MLRs. According to HM Treasury (HMT), this will allow the UK to take its own view on which countries are high-risk in relation to money laundering and terrorist financing. HMT says that in future the Schedule will be updated periodically by way of further regulations, for example to reflect changes made by the Financial Action Task Force (FATF)28 to its lists.

Meat Preparations (Amendment and Transitory Modification) (England) (EU Exit) (Amendment) Regulations 2021 (SI 2021/366)

42.This instrument amends an earlier instrument29 to extend the temporary removal of the requirement for meat preparations, such as raw sausages, hamburgers, meatballs and peppered steak, imported from the European Economic Area (EEA) into England to be deep frozen to a temperature of minus 18 degrees until 30 September 2021. Without this extension, the temporary measure would have expired on 31 March, and it would have been illegal for traders to import chilled meat preparations from the EEA from 1 April. The Department for Environment, Food and Rural Affairs (Defra) says that the extension brings policy in line with the revised timetable for the phased introduction of import controls on goods arriving from the EEA, as announced on 11 March,30 providing a consistent approach towards imports and preventing disruption to businesses and consumers.

43.We note the absence of a level playing field for businesses from Great Britain (GB) in this area: because the EU has not reciprocated the temporary measures introduced by this instrument, GB businesses have been unable to export chilled meat preparations, such as raw sausages, to the EEA since 1 January 2021.

44.Defra told us that Scotland and Wales have made equivalent legislation, so that there is a GB wide approach, while Northern Ireland (NI) can continue to import chilled meat preparations from the EU under the NI Protocol. In addition, a six-month grace period until 30 June 2021 allows the movement of ‘restricted and prohibited’ meat products, including chilled meat preparations, from GB to NI. With regard to the end of this grace period, Defra says that the Trade and Cooperation Agreement allows the UK and the EU to cooperate on avoiding unnecessary Sanitary and Phytosanitary barriers to trade in agri-food goods and that the Department is “focused on the need for a long-term solution to this issue”, adding that “the UK government will consider what is the appropriate response to take in line with obligations under the protocol; working with industry, government and the EU”.

25 Draft Whiplash Injury Regulations 2021 and Civil Procedure (Amendment No.2) Rules 2021 (SI 2021/196), 49th Report, Session 2019–21 (HL Paper 245).

27 Commission Delegated Regulation (EU) 2016/1675.

28 The FATF, of which the UK is a member, is an inter-governmental body established in 1989 that sets international standards with the aim of preventing money laundering and terrorist financing activities.

29 Meat Preparations (Amendment and Transitory Modification) (England) (EU Exit) Regulations 2020 (SI 2020/1666).

30 Border Controls, Statement UIN HLWS833, 11 March 2021.

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