Citation

1.  This Order may be cited as the Compensation (Regulated Claims Management Services) Order 2006.

Commencement

2.  This Order comes into force on the day after the day on which it is made.

Definition—“the Act”

3.  In this Order, “the Act” means the Compensation Act 2006.

Regulated services

4.—(1) For the purposes of Part 2 of the Act, services of a kind specified in paragraph (2) are prescribed if rendered in relation to the making of a claim of a kind described in paragraph (3), or in relation to a cause of action that may give rise to such a claim.

(2) The kinds of service are the following—

(a)advertising for, or otherwise seeking out (for example, by canvassing or direct marketing), persons who may have a cause of action;

(b)advising a claimant or potential claimant in relation to his claim or cause of action;

(c)subject to paragraph (4), referring details of a claim or claimant, or a cause of action or potential claimant, to another person, including a person having the right to conduct litigation;

(d)investigating, or commissioning the investigation of, the circumstances, merits or foundation of a claim, with a view to the use of the results in pursuing the claim;

(e)representation of a claimant (whether in writing or orally, and regardless of the tribunal, body or person to or before which or whom the representation is made).

(3) The kinds of claim are the following—

(a)claims for personal injuries, within the meaning in the Civil Procedure Rules 1998(2);

(b)claims under the Criminal Injuries Compensation Scheme established under the Criminal Injuries Compensation Act 1995(3);

(c)claims for a benefit specified or referred to in article 3 of the Compensation (Specification of Benefits) Order 2006(4);

(d)claims in relation to employment (including claims in relation to wages and salaries and other employment-related payments, and claims in relation to wrongful or unfair dismissal, redundancy, discrimination and harassment);

(e)claims for housing disrepair (that is, claims under section 11 of the Landlord and Tenant Act 1985(5) or section 4 of the Defective Premises Act 1972(6), claims in relation to the disrepair of premises under a term of a tenancy agreement or lease or under the common law relating to nuisance or negligence, but not claims for statutory nuisance under section 82 of the Environmental Protection Act 1990(7));

(f)claims in relation to financial products or services.

(4) In spite of paragraph (2)(c), the service of referring a claim’s or a claimant’s details to another person is not a regulated claims management service if it is not undertaken for or in expectation of a fee, gain or reward.

EXPLANATORY NOTE

(This note is not part of the Order)

Part 2 of the Compensation Act 2006 (“the Act”) regulates claims management services.

Claims management services include services in relation to claims for compensation, restitution, repayment or any other remedy or relief in respect of loss or damage, or in respect of an obligation. A person who provides “regulated claims management services” must be authorised under the Act to do so, or be exempted, or have the benefit of a waiver of the obligation to be authorised. Under section 4 of the Act a regulated claims management service is one prescribed by order by the Secretary of State.

This Order prescribes the services mentioned in article 4(2) when provided in connection with certain kinds of claim listed in article 4(3). The services include advertising for claimants, referral of claimants to legal practitioners, advice in relation to claims and investigation of claims. The kinds of claim include: personal injury claims and criminal injuries compensation claims; employment-related claims such as claims for wages, unfair dismissal and discrimination; claims for housing disrepair; claims relating to financial products or services; and industrial injuries disability benefits.

A person who provides “regulated claims management services” must be authorised under the Act to do so, or be exempted, or have the benefit of a waiver of the obligation.