• Welcome to the LegalBeagles Consumer and Legal Forum. Please register to get the most out of the forum. Registration is free and only needs a username and email address.
  • Please note that LegalBeagles is a public forum and the main areas are accessible to all, and as such, please take care your username or posts do not identify you. There is no need to post claim numbers, names or precise amounts to get support with your case. When uploading documents please ensure that you have properly redacted your personal details. Thank you.

Financial Guidance and Claims Bill ( cap on charges and move to FCA )

Collapse
X
  • Filter
  • Time
  • Show
Clear All
new posts

  • Financial Guidance and Claims Bill ( cap on charges and move to FCA )

    http://services.parliament.uk/bills/...andclaims.html

    This afternoon after PMQ's in HoC - Then after 3pm in HoL

    Claims Management Services
    1. 16. Transfer to FCA of regulation of claims management services
    2. 17. Power of FCA to make rules restricting charges for claims management
      services




    Part 2 Claims Management Services

    16 Transfer to FCA of regulation of claims management services

    (1) 20The Financial Services and Markets Act 2000 is amended as follows.
    (2) In section 21 (restrictions on financial promotion)—
    (a) in subsection (1)—
    (i) the words from “to engage” to the end become paragraph (a),
    and
    (ii) 25at the end of that paragraph insert “, or
    (b) to engage in claims management activity.”,
    (b) after subsection (10) insert—
    “(10A) “Engaging in claims management activity” means entering into
    or offering to enter into an agreement the making or
    30performance of which by either party constitutes a controlled
    claims management activity.
    (10B) An activity is a “controlled claims management activity” if—
    (a) it is an activity of a specified kind,
    (b) it is, or relates to, claims management services, and
    (c) 35it is carried on in England or Wales.”, and
    (c) after subsection (12) insert—
    “(12A) Paragraph 25 of Schedule 2 applies for the purposes of
    subsection (10B) with the references to section 22 in sub-
    paragraph (3) of that paragraph being read as references to
    40subsection (10B).”
    (3) In section 22 (regulated activities)—
    Financial Guidance and Claims BillPage 12

    (a) after subsection (1A) insert—
    “(1B) An activity is also a regulated activity for the purposes of this
    Act if it is an activity of a specified kind which—
    (a) is carried on by way of business in England or Wales,
    5and
    (b) is, or relates to, claims management services.”, and
    (b) in subsection (3) for “subsection (1) or (1A)” substitute “subsections (1)
    to (1B)”.
    (4) In section 234C (complaints to the FCA by consumer bodies)—
    (a) 10in subsection (1), after “financial services” insert “or of a market in
    England and Wales for claims management services”, and
    (b) in subsection (5)—
    (i) in paragraph (a), at the end insert “(and “market in England and
    Wales” is to be construed accordingly)”, and
    (ii) 15in paragraph (b), after “financial services” insert “, or of a
    market in England and Wales for claims management
    services,”.
    (5) In section 234I (FCA’s functions under Part 4 of the Enterprise Act 2002)—
    (a) in subsection (2)(b), after “services” insert “or to the provision of claims
    20management services in England and Wales”, and
    (b) in subsection (6)(a), after “financial services” insert “or in England and
    Wales of claims management services”.
    (6) In section 234J(2) (FCA’s functions under the Competition Act 1998), after
    “financial services” insert “or relate to the provision of claims management
    25services in England and Wales”.
    (7) In section 234M(1) (function of keeping market under review), after “services”
    insert “and the market in England and Wales for claims management services”.
    (8) In section 417(1) (definitions), at the appropriate place insert—
    • ““regulated claims management activity” means activity of a kind
      30specified in an order under section 22(1B) (regulated activities:
      claims management services);”.

    (9) After section 419 insert—
    “419A Claims management services

    (1) In this Act “claims management services” means advice or other
    35services in relation to the making of a claim.
    (2) In subsection (1) “other services” includes—
    (a) financial services or assistance,
    (b) legal representation,
    (c) referring or introducing one person to another, and
    (d) 40making inquiries,
    but giving, or preparing to give, evidence (whether or not expert
    evidence) is not, by itself, a claims management service.
    (3) In this section “claim” means a claim for compensation, restitution,
    repayment or any other remedy or relief in respect of loss or damage or
    Financial Guidance and Claims BillPage 13

    in respect of an obligation, whether the claim is made or could be
    made—
    (a) by way of legal proceedings,
    (b) in accordance with a scheme of regulation (whether voluntary
    5or compulsory), or
    (c) in pursuance of a voluntary undertaking.
    (4) The Treasury may by order provide that a claim for a specified benefit
    is to be treated as a claim for the purposes of this section.
    (5) The Treasury may specify a benefit under subsection (4) only if it
    10appears to the Treasury to be a social security benefit, payable under
    the law of any part of the United Kingdom, designed to provide
    compensation for industrial injury.
    419B Carrying on claims management activity in England or Wales

    (1) The Treasury may by order make provision as to the circumstances in
    15which a person is, or is not, to be treated as carrying on—
    (a) a regulated claims management activity, or
    (b) an activity of a kind specified in an order under section 21(10B),
    in England or Wales.
    (2) Subsections (2) to (5) of section 419 apply in relation to an order under
    20subsection (1) as they apply in relation to an order under subsection (1)
    of that section, but as if the references to regulated activities in
    subsection (2) of that section were references to regulated claims
    management activities or, as the case may be, to activities of a kind
    specified in an order under section 21(10B).”
    (10) 25In section 429 (parliamentary control of statutory instruments)—
    (a) in subsection (1)(a) (orders subject to affirmative procedure), for “or
    419” substitute “, 419 or 419B”,
    (b) in subsection (4)—
    (i) in paragraph (e), for “or (10)” substitute, “, (10) or (10B)”,
    (ii) 30omit the “or” at the end of paragraph (f), and
    (iii) after paragraph (g) insert “; or
    (h) it adds one or more activities to those that are
    controlled claims management activities for the
    purposes of section 21.”, and
    (c) 35after subsection (7) insert—
    “(7A) An order to which, if it is made, subsection (7B) will apply is not
    to be made unless a draft of the order has been laid before
    Parliament and approved by a resolution of each House.
    (7B) This subsection applies to an order under section 419A(4) if—
    (a) 40it is the first order to be made, or to contain provisions
    made, under that subsection; or
    (b) it adds one or more benefits to those that are specified
    benefits for the purposes of section 419A.”
    (11) In Schedule 2 (regulated activities)—
    (a) 45in paragraph 25 (order making power), in sub-paragraph (1)—
    (i) in the opening words for “or (1A)” substitute “to (1B)”;
    Financial Guidance and Claims BillPage 14

    (ii) in paragraph (f) at the end insert “, including provision which
    applies (with or without modification) provision in this Act or
    other primary or subordinate legislation that relates to
    investment activity or financial services to a regulated activity
    5that does not relate to investment activity or financial services.”,
    and
    (b) in paragraph 26 (parliamentary control), in sub-paragraph (1) for “or
    (1A)” substitute “to (1B)”.
    (12) Schedule 4 contains provision about transfer schemes where an order is made
    10under section 22(1B) of the Financial Services and Markets Act 2000 (inserted
    by subsection (3)(a)).
    (13) Schedule 5 contains transitional provision relating to this section.
    17 Power of FCA to make rules restricting charges for claims management
    services


    (1) 15The Financial Services and Markets Act 2000 is amended as set out in
    subsections (2) and (3).
    (2) After section 137FBB insert—
    “137FC FCA general rules: charges for claims management services

    (1) The power of the FCA to make general rules includes power to make
    20rules prohibiting authorised persons from—
    (a) entering into a specified regulated claims management
    agreement that provides for the payment by a person of charges
    which, taken with charges payable under an agreement treated
    by the rules as being connected with the regulated claims
    25management agreement (if any), are specified charges, and
    (b) imposing specified charges on a person in connection with the
    provision of a service which is, or which is provided in
    connection with, a specified regulated claims management
    activity.
    (2) 30The FCA must make rules by virtue of subsection (1) in relation to all
    regulated claims management agreements, and all regulated claims
    management activities, which concern claims in relation to financial
    products or services.
    (3) The rules must be made with a view to securing an appropriate degree
    35of protection against excessive charges for the provision of a service
    which is, or which is provided in connection with, a regulated claims
    management activity.
    (4) The rules may specify charges by reference to charges of a specified
    class or description, or by reference to charges which exceed, or are
    40capable of exceeding, a specified amount.
    (5) In relation to an agreement entered into, or charge imposed, in
    contravention of the rules, the rules may (amongst other things)—
    (a) provide for the agreement, or obligation to pay the charge, to be
    unenforceable or unenforceable to a specified extent;
    (b) 45provide for the recovery of amounts paid under the agreement
    or obligation;
    Common Sense .... if in doubt, use it !

    “We may not win by protesting, but if we don’t protest we will lose. If we stand up to them, there is always a chance we will win.” Hetty Bower

    Any support I provide is offered without liability, if you are unsure please seek professional legal guidance.

    If we have helped you we'd appreciate it if you can leave a review on our Trust Pilot page

    Find Solicitors offering fixed fees on our sister site - JustBeagle.com
    Tags: None

Announcement

Collapse
No announcement yet.
Loading...

upgrade to vip

Want exclusive access to forums, more privacy and a live chat box? Upgrade to become a bigger part of our community.

only £15/yr

Offers available. No subscription traps.

sign up now



Search and Compare fixed fee legal services and find a solicitor near you.

Find a Law Firm


Working...
X