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Draft Order laid before Parliament under section 429(1), (3), (4)(d) and (e), (7A) and (7B) of, and paragraph 26(2) of Schedule 2 to, the Financial Services and Markets Act 2000, for approval by resolution of each House of Parliament. D R A F T S T A T U T O R Y I N S T R U M E N T S
2018 No.
FINANCIAL SERVICES AND MARKETS
Financial Services and Markets Act 2000 (Claims Management
Activity) Order 2018
Made - - - - *** Coming into force in accordance with article 1(2) and (3)
CONTENTS
PART 1
Introductory provisions
- Citation, commencement, interpretation and extent 4
- Carrying on a regulated claims management activity in Great Britain 5
PART 2
Amendments to secondary legislation made under the 2000 Act 3.–7. The Financial Services and Markets Act 2000 (Regulated Activities) Order 2001 6 8.–38. The Financial Services and Markets Act 2000 (Financial Promotion) Order 2005 13
PART 3
Transitional provisions CHAPTER 1 Interpretation
- Interpretation 21 CHAPTER 2 Authorisation and regulation of 2006 Act authorised persons
- Meaning of “relevant person” 22
- Applications for authorisation made to the Regulator: authorisation by the FCA 22
- Applications for authorisation made to the Regulator: appeal of decision 23
- Proposal by the Regulator to vary authorisation: determination by the FCA 24
- Variation of authorisation by the Regulator: appeal of decision 24
51. Penalties for conduct for which the Regulator has not given notice of
- Proposal by the Regulator to cancel authorisation: determination by the FCA
- Cancellation of authorisation by the Regulator: appeal of decision
- Proposal by the Regulator to suspend authorisation: determination by the FCA
- Suspension of authorisation by the Regulator: appeal of decision
- Notice by the Regulator of proposed direction
- Compliance with information requirement imposed by the Regulator
- proposed penalty
- penalty 52. Penalties for conduct for which the Regulator has given notice of proposed
- appeal of decision 53. Penalties for conduct for which the Regulator has given penalty decision:
- penalty due 54. Penalties for conduct for which the Regulator has given penalty decision:
- before that date 55. Investigation and prosecution after 1st April 2019 in relation to conduct
- Regulator 56. Unprofessional conduct: continuation of investigation commenced by the
- Regulator and institution of criminal proceedings 57. Offences under the 2006 Act: continuation of investigation commenced by the
- Continuation of criminal proceedings instituted by the Regulator
- Continuation of injunction applications made by the Regulator
- Continuation of application made by the Regulator for a search warrant
- Retention of records seized by an officer of the Regulator
- Decision notices
- Conditions and directions
- Fees and invoices
- Continuation of appeals commenced before 1st April Appeals and references
- Right to appeal after 1st April 2019 against a decision of the Regulator
- Continuation of references made by the Regulator to the First-tier Tribunal
- Interpretation Complaints: the Legal Ombudsman and the Financial Ombudsman Service
- Complaints made before 1st April 2019 not concluded by that date
- that date 70. Complaints made on or after 1st April 2019 about acts or omissions before
- Procedure for dealing with relevant complaints
- Determination of relevant existing complaints
- Determination of relevant new complaints
- Funding and charges
- Surplus fees
- Exemption from liability in damages
- Privilege
- Record-keeping and reporting requirements relating to relevant complaints
- 79 Information and reports
CHAPTER 4 Saving and supplemental provisions SECTION 1 General provision
- General scope of saving provisions 55 SECTION 2 Primary legislation
- Courts and Legal Services Act 1990 56
- Compensation Act 2006 56
- Legal Services Act 2007 57 1 10. Legal Aid, Sentencing and Punishment of Offenders Act 2012 57 SECTION 3 Secondary legislation
- Compensation (Claims Management Services) Regulations 2006 57 11 2. Damages-Based Agreements Regulations 2013 58
PART 7
Review
- Review 58 The Treasury make the following Order in exercise of the powers conferred by sections 21(5), (6), (10B) and (12A)( a ), 22(1B)( b ), 419A(4), 419B( c ) and 428(3) of, and paragraph 25 of Schedule 2 to, the Financial Services and Markets Act 2000( d ) (“the 2000 Act”). In the opinion of the Treasury, one of the effects of the following Order is that an activity which is not a regulated activity (within the meaning of the 2000 Act) will become a regulated activity. In accordance with section 429(1), (3), (4) (d) and (e), (7A) and (7B)( e ) of, and paragraph 26(2) of Schedule 2 to, the 2000 Act, a draft of this Order has been laid before and approved by a resolution of each House of Parliament. PART 1
Introductory provisions
Citation, commencement, interpretation and extent
1. —(1) This Order may be cited as the Financial Services and Markets Act 2000 (Claims Management Activity) Order 2018. ( a ) Subsections (10B) and (12A) of section 21 was inserted by section 27(3) of the Financial Guidance and Claims Act 2018 (c. 1 0) (“the 2018 Act”). See subsection (15) for the meaning of “specified”. ( b ) Subsection (1B) of section 22 was inserted by section 27(4) of the 2018 Act c. 10. See subsection (5) for the meaning of “specified”. ( c ) Sections 419A and 419B were inserted by section 27(11) of the 2018 Act. ( d ) 2000 c. 8. ( e ) In section 429, subsection (4)(e) was amended, and subsections (7A) and (7B) were inserted, by section 27(12) of the 2018 Act.
(2) This Order comes into force on the day after the day on which it is made for the purpose only of— (a) enabling the Financial Conduct Authority— (i) to make rules; (ii) to give guidance; (iii) to impose requirements or make directions; (iv) to approve rules; (v) to make a designating instrument pursuant to article 85; (vi) to claim legal professional privilege or, in Scotland, confidentiality of communications pursuant to article 87; and (b) enabling the Financial Ombudsman Service— (i) to make rules; (ii) to make standard terms; and (iii) to claim legal professional privilege or, in Scotland, confidentiality of communications pursuant to article 87. (3) This Order comes into force on 1st April 2019 for all other purposes. (4) In this Order “the 2000 Act” means the Financial Services and Markets Act 2000. (5) Subject to paragraph (6), this Order extends to England and Wales and Scotland. (6) Articles 90, 9 3, 95, 96, 101, 102 and 103 extend to England and Wales only. Carrying on a regulated claims management activity in Great Britain
2. —(1) A person is to be treated as carrying on a regulated claims management activity in Great Britain when the activity is carried on— (a) by a person who is— (i) an individual who is ordinarily resident in Great Britain; or (ii) a person, other than an individual, who is constituted under the law of England and Wales or Scotland; or (b) in respect of a claimant or pursuer, or potential claimant or potential pursuer who is— (i) an individual who is ordinarily resident in Great Britain; or (ii) a person, other than an individual, who is constituted under the law of England and Wales or Scotland. (2) For the purposes of this article— (a) a person is “ordinarily resident” in Great Britain if that person satisfies the requirements of the Statutory Residence Test as set out in Schedule 45 to the Finance Act 2013( a ) either— (i) at the time of the facts giving rise to the claim or potential claim; or (ii) at the time when the regulated claims management activity is carried out in respect of that claimant or pursuer or potential claimant or potential pursuer; (b) the references to the “the UK” in the Statutory Residence Test in Schedule 45 are to be read as if they were expressed as references to “Great Britain”. ( a ) 2013 c. 29.
premises under a term of a tenancy agreement or lease or under the common law relating to nuisance or negligence, but does not include claims for statutory nuisance under section 82 of the Environmental Protection Act 1990( a ); (f) “a claim for a specified benefit” means a claim for one of the following benefits— (i) industrial injuries benefit, within the meaning given by section 94 of the Social Security Contributions and Benefits Act 1992( b ); (ii) any supplement or additional allowance, or increase of benefit or allowance to which a recipient of an industrial injuries benefit may be entitled under that Act or any other Act; (iii) a benefit under a scheme referred to in paragraph 2 or 4 of Schedule 8 to that Act; or (iv) a benefit under the Pneumoconiosis etc. (Workers’ Compensation) Act 1979( c ). (g) “criminal injury claim” means a claim under the Criminal Injuries Compensation Scheme established under the Criminal Injuries Compensation Act 1995( d ); (h) “employment related claim” includes a claim in relation to wages and salaries and other employment related payments and claims in relation to wrongful or unfair dismissal, redundancy, discrimination and harassment; (i) “investigating” means carrying out an investigation into, or commissioning the investigation of, the circumstances, merits or foundation of a claim; and (j) “representing” means representation in writing or orally, regardless of the tribunal, body or person before which or to whom the representation is made. (3) A person is to be treated as carrying on a regulated claims management activity in Great Britain when the activity is carried on— (a) by a person who is— (i) an individual who is ordinarily resident in Great Britain; or (ii) a person, other than an individual, who is constituted under the law of England and Wales or Scotland; or (b) in respect of a claimant or potential claimant who is— (i) an individual who is ordinarily resident in Great Britain; or (ii) a person, other than an individual, who is constituted under the law of England and Wales or Scotland. (4) For the purposes of this article— (a) a person is “ordinarily resident” in Great Britain if that person satisfies the requirements of the Statutory Residence Test as set out in Schedule 45 to the Finance Act 2013 ( e ) either— (i) at the time of the facts giving rise to the claim or potential claim; or (ii) at the time when the regulated claims management activity is carried out in respect of that claimant or potential claimant; (b) the references to the “UK” in the Statutory Residence Test in Schedule 45 are to be read as if they were expressed as references to “Great Britain”. 89G. Seeking out, referrals and identification of claims or potential claims ( a ) 1990 c. 43. ( b ) 1992 c. 4. ( c ) 1979 c. 41. ( d ) 1995 c. 53. ( e ) 2013 c. 29.
(1) Each of the following is a specified kind of activity when carried on in relation to a claim of a kind specified in paragraph (2)— (a) seeking out persons who may have a claim, unless that activity constitutes the communication of an invitation or inducement to engagement in claims management activity within the meaning of section 21 (restrictions on financial promotion)( a ) of the Act; (b) referring details of— (i) a claim or potential claim; or (ii) a claimant or potential claimant to another person (including to a person having the right to conduct litigation); and (c) identifying— (i) a claim or potential claim; or (ii) a claimant or potential claimant. (2) The kinds of claim are— (a) a personal injury claim; (b) a financial services or financial product claim; (c) a housing disrepair claim; (d) a claim for a specified benefit; (e) a criminal injury claim; and (f) an employment related claim. 89H. Advice, investigation or representation in relation to a personal injury claim Each of the following activities is a specified kind of activity when carried on in relation to a personal injury claim— (a) advising a claimant or potential claimant; (b) investigating a claim; and (c) representing a claimant. 89I. Advice, investigation or representation in relation to a financial services or financial product claim Each of the following activities is a specified kind of activity when carried on in relation to a financial services or financial product claim— (a) advising a claimant or potential claimant; (b) investigating a claim; and (c) representing a claimant. 89J. Advice, investigation or representation in relation to a housing disrepair claim Each of the following activities is a specified kind of activity when carried on in relation to a housing disrepair claim— (a) advising a claimant or potential claimant; (b) investigating a claim; and (c) representing a claimant. 89K. Advice, investigation or representation in relation to a claim for a specified benefit ( a ) Section 21 was amended by the 2018 Act, section 27(4). There are other amendments, but none is relevant.
(3) There is excluded from articles 89G to 89M any activity which is carried on in Scotland by— (a) a legal practitioner; (b) a firm, organisation or body corporate that carries on the claims management activity through or under the supervision of a legal practitioner where that firm, organisation or body corporate is— (i) a firm of solicitors; (ii) an incorporated practice; or (iii) a licensed legal services provider and the activity is a legal service as defined within section 3 of the Legal Services (Scotland) Act 2010( a ). (4) For the purposes of paragraph (3) “legal practitioner” means— (a) a person who is qualified to practise as a solicitor under section 4 of the Solicitors (Scotland) Act 1980( b ); (b) an advocate who is a member of the Faculty of Advocates; (c) a European lawyer as defined in the European Communities (Services of Lawyers) Order 1978 or the European Communities (Lawyer’s Practice) (Scotland) Regulations 2000( c ); or (d) a registered foreign lawyer within the meaning of section 65 of the Solicitors (Scotland) Act 1980. (5) But an activity mentioned in paragraph (1) or (3) is only excluded from articles 89G to 89M if the legal practitioner concerned carries on the claims management activity in the ordinary course of legal practice pursuant to the professional rules to which that legal practitioner is subject. (6) The exclusions in this article are to be read as if they were expressed as exemptions for the purposes of the following provisions of the Financial Guidance and Claims Act 2018 — (a) section 32(5)(b) (PPI claims: interim restriction on charges imposed by legal practitioners after transfer of regulation to the FCA); and (b) section 33(11) (legal services regulators’ rules: charges for claims management services). 89O. Claims management activity conducted by a charity or not-for-profit agency (1) There is excluded from articles 89G to 89M any activity carried on by a charity or a not-for-profit agency. (2) In this article “charity” means— (a) a charity as defined by section 1(1) of the Charities Act 2011( d ) or the Charities and Trustee Investment (Scotland) Act 2005( e ); or (b) a body registered in the Scottish Charity Register. (3) In this article “not-for-profit agency” means a body that by or under its constitution— (a) is required to apply the whole of its net income, and any expendable capital, after payment of outgoings for charitable or public purposes; and (b) is prohibited from distributing, directly or indirectly, any part of its net income by way of profits or its assets among any of its members. ( a ) 2010 asp 16. ( b ) 1980 c. 46. ( c ) S.S.I. 2000/121. ( d ) 2011 c. 25. ( e ) 2005 asp 10.
(4) But a body is not prevented from being a not-for-profit agency for the purposes of paragraph (3) if its constitution permits— (a) the payment, out of the body’s funds, of reasonable and proper remuneration for goods or services supplied to the body by a member; or (b) in the case of a not-for-profit body that is a charity, the payment to a member to which the member is eligible because that member is a beneficiary of the charity; or (c) the purchase, out of the body’s funds, of indemnity insurance for trustees of the body. 89P. Claims management activity conducted by a person appointed by a statutory or other public body There is excluded from articles 89G to 89M any activity carried on by— (a) any person established or appointed by virtue of an enactment; (b) an Independent Complaints Reviewer; or (c) an Independent Case Examiner in the course of carrying out that individual’s duties. 89Q. Claims management activity conducted by the Motor Insurers’ Bureau There is excluded from articles 89G to 89M any activity carried on by the Motor Insurers’ Bureau in the course of carrying on its functions (being the company limited by guarantee mentioned in section 95(2) (notification of refusal of insurance on grounds of health) of the Road Traffic Act 1988( a )). 89R. Claims management activity conducted by a medical defence union There is excluded from articles 89G to 89M any activity carried on by— (a) the Medical Protection Society Limited for its members; (b) the Medical Defence Union Limited for its members; or (c) the Medical and Dental Defence Union of Scotland Limited for its members. 89S. Claims management activity conducted an independent trade union (1) There is excluded from articles 89G to 89M any activity carried on by an independent trade union for – (a) a member (including a retired member or a student member) of an independent trade union; (b) a member of the family of a member referred to in sub-paragraph (a); or (c) a former member of the trade union to whom the trade union may, under its rules, provide claims management services, or a member of the family of such a former member. (2) In paragraph (1), “independent trade union” has the same meaning as in the Trade Union and Labour Relations (Consolidation) Act 1992( b ). (3) For the purposes of paragraph (1) – (a) subject to sub-paragraph (b), whether a person is or has been a member (including a retired member or a student member) of a trade union is to be decided in accordance with the rules of that trade union; (b) “member” of a trade union does not include a person who, under those rules, is a member only for the purpose of pursuing a claim or claims; and ( a ) 1988 c. 52. ( b ) 1992 c. 52.
(i) the making of a counterclaim against the claimant arising out of the same set of facts as the claim referred to in sub-paragraph (a); or (ii) the making of a claim against a third party (whether for contribution, as a subrogated claim, or otherwise) which is incidental to, or consequent on, the claim referred to in sub-paragraph (a).”. The Financial Services and Markets Act 2000 (Financial Promotion) Order 2005
8. The Financial Services and Markets Act 2000 (Financial Promotion) Order 2005( a ) is amended as follows. 9. In article 2 (interpretation: general), in the appropriate place, insert— ““controlled claims management activity” has the meaning given in article 4( 3 );”. 10. In article 4 — (a) in the heading of the article, after “controlled activities” insert “, controlled claims management activities”; (b) after paragraph (2) insert— “( 3 ) For the purposes of section 21(10B)( b ) of the Act, a controlled claims management activity is an activity carried on in Great Britain of a kind specified in paragraph 11A of Schedule 1.”. 11. In article 8 (interpretation: solicited and unsolicited real time communications)— (a) in paragraph (3), in sub-paragraph (b) after “controlled activities or investments” insert “or controlled claims management activities”; and (b) in paragraph (4), in sub-paragraph (b) after “any investment activity” insert “or any claims management activity”. 12. In paragraph (1) of article 11 (combination of different exemptions) in sub-paragraph (b) for “11” substitute “11A”. 13. In article 12 (communications to overseas recipients)— (a) in paragraph (1) for “paragraphs (2) and (7)” substitute “paragraphs (2), (7) and (8)”; and (b) after paragraph (7) insert— “(8) Paragraph (1) does not apply to any communication in respect of a controlled claims management activity.”. 14. In paragraph (1) of article 13 (communications from customers and potential customers)— (a) in sub-paragraph (a)— (i) after “controlled investment” insert “or controlled claims management activity”; (ii) omit “or”; (b) at the end of sub-paragraph (b) insert “; or”; and (c) after sub-paragraph (b) insert— “(c) in order that the customer can be supplied with services in respect of a controlled claims management activity by that supplier.”. 15. In paragraph (2) of article 14 (follow up non-real time communications and solicited real time communications) in sub-paragraph (d) after “and the same controlled investment” insert “or relates to the same controlled claims management activity”. ( a ) S.I. 2005/1529. ( b ) Section 21(10B) was inserted by Financial Guidance and Claims Act 2018 (c. 10) section 27(3)(b).
16. In paragraph (1A) of article 15 (introductions) after sub-paragraph (c) insert— “(d) paragraph 11A of that Schedule.”. 17. In article 16 (exempt persons) in paragraph (1) sub-paragraph (c) after “controlled activity” insert “or controlled claims management activity”. 18. In article 17 (generic promotions)— (a) at the end of sub-paragraph (a) omit “and”; (b) at the end of sub-paragraph (b) insert “; and”; (c) after sub-paragraph (b) insert— “(c) does not identify (directly or indirectly) any person as a person who carries on a controlled claims management activity.”. 19. In article 19 (investment professionals) after paragraph (6) insert — “(7) Paragraph (1) does not apply to any communication in respect of a controlled claims management activity.”. 20. In article 20 (communications by journalists) in paragraph (3)— (a) in sub-paragraph (b) after “paragraph (4)” insert “or to a controlled claims management activity”; (b) in sub-paragraph (c) after “controlled investment” insert “or who carries on or engages in the controlled claims management activity”. 21. In article 27 (application of exemptions in Part 6) after sub-paragraph (b) insert— “(c) a controlled claims management activity.”. 22. In article 28 (one off non-real time communications and solicited real time communications) in paragraph (3) sub-paragraph (a) after “investment activity” insert “or controlled claims management activity”. 23. In article 28A (one off unsolicited real time communications) after paragraph (3) insert— “(4) Paragraph (1) does not apply to any communication in respect of a controlled claims management activity.”. 24. In article 30 (overseas communicators: solicited real time communications) after paragraph (2) insert— “(3) Paragraph (1) does not apply to any communication in respect of a controlled claims management activity.”. 25. In article 31 (overseas communicators: non-real time communications to previously overseas customers) after paragraph (3) insert— “(4) Paragraph (1) does not apply to any communication in respect of a controlled claims management activity.”. 26. In article 32 (overseas communicators: unsolicited real time communications to previously overseas customers) after paragraph (3) insert— “(4) Paragraph (1) does not apply to any communication in respect of a controlled claims management activity.”. 27. In article 33 (overseas communicators: unsolicited real time communications to knowledgeable customers) after paragraph (4) insert— “(5) Paragraph (1) does not apply to any communication in respect of a controlled claims management activity.”. 28. Article 36 (nationals of EEA States other than United Kingdom) is renumbered as paragraph (1) of that article and after the renumbered paragraph (1) insert—
(ii) a director of a company, or a member of a limited liability partnership, that provides the service and is that individual’s employer. (2) In paragraph (1) “legal practitioner” means— (a) a solicitor or barrister of any part of England and Wales or Northern Ireland; (b) a Fellow of the Chartered Institute of Legal Executives; (c) a European lawyer, as defined in the European Communities (Services of Lawyers) Order 1978( a ) or the European Communities (Lawyer’s Practice) Regulations 2000( b ); (d) a registered foreign lawyer, as defined in section 89(9) of the Courts and Legal Services Act 1990( c ); (e) any other member of a legal profession, of a jurisdiction other than England and Wales, that is recognised by the Law Society of England and Wales or the General Council of the Bar as a regulated legal profession. (3) The financial promotion restriction does not apply to a communication which relates to a controlled claims management activity when that communication is made in Scotland by— (a) a legal practitioner; (b) a firm, organisation or body corporate that carries on the controlled claims management activity through or under the supervision of a legal practitioner where that firm, organisation or body corporate is— (i) a firm of solicitors; (ii) an incorporated practice; or (iii) a licensed legal services provider and the activity is a legal service as defined within section 3 of the Legal Services (Scotland) Act 2010( d ). (4) In paragraph (3) “legal practitioner” means— (a) a person who is qualified to practise as a solicitor under section 4 of the Solicitors (Scotland) Act 1980( e ); (b) an advocate who is a member of the Faculty of Advocates; (c) a European lawyer as defined in the European Communities (Services of Lawyers) Order 1978 or the European Communities (Lawyer’s Practice) (Scotland) Regulations 2000( f ); or (d) a registered foreign lawyer within the meaning of section 65 of the Solicitors (Scotland) Act 1980. (5) A communication mentioned in paragraph (1) or (3) is only excluded from the financial promotion restriction if the legal practitioner concerned carries on the controlled claims management activity in the ordinary course of legal practice pursuant to the professional rules to which that legal practitioner is subject. 7 3C. Communications made by a charity or not-for-profit agency (1) The financial promotion restriction does not apply to any communication which relates to a controlled claims management activity when that communication is made by a charity or not-for-profit agency. (2) In this article “charity” means— ( a ) S.I. 1978/1910. ( b ) S.I. 2000/1119. ( c ) 1990 c. 41. ( d ) 2010 asp 16. ( e ) 1980 c. 46. ( f ) S.S.I. 2000/121.
(a) a charity as defined by section 1(1) of the Charities Act 2011( a ) or the Charities and Trustee Investment (Scotland) Act 2005( b ); or (b) a body registered in the Scottish Charity Register. (3) In this article “not-for-profit agency” means a body that by or under its constitution– (a) is required to apply the whole of its net income, and any expendable capital, after payment of outgoings for charitable or public purposes; and (b) is prohibited from distributing, directly or indirectly, any part of its net income by way of profits or its assets among any of its members. (4) But a body is not prevented from being a not-for-profit agency for the purposes of paragraph (3) if its constitution permits— (a) the payment, out of the body’s funds, of reasonable and proper remuneration for goods or services supplied to the body by a member; or (b) in the case of a not-for-profit body that is a charity, the payment to a member to which the member is eligible because that member is a beneficiary of the charity; or (c) the purchase, out of the body’s funds, of indemnity insurance for trustees of the body. 7 3D. Communications made by a person appointed by a statutory or other public body The financial promotion restriction does not apply to any communication which relates to a controlled claims management activity when that communication is made by— (a) any person established or appointed by virtue of an enactment; (b) an Independent Complaints Reviewer; or (c) an Independent Case Examiner when the communication is made in the course of carrying out that individual’s duties. 7 3E. Communications made by the Motor Insurers’ Bureau The financial promotion restriction does not apply to any communication which relates to a controlled claims management activity when that communication is made by the Motor Insurers’ Bureau in the course of carrying its functions (being the company limited by guarantee mentioned in section 95(2) (notification of refusal of insurance on grounds of health) of the Road Traffic Act 1988( c )). 73F. Communications made by a medical defence union The financial promotion restriction does not apply to any communication which relates to a controlled claims management activity when that communication is made by— (a) the Medical Protection Society Limited for its members; (b) the Medical Defence Union Limited for its members; or (c) the Medical and Dental Defence Union of Scotland Limited for its members. 73G. Communications made by an independent trade union (1) The financial promotion restriction does not apply to any communication which relates to a controlled claims management activity when that communication is made by an independent trade union for — (a) a member (including a retired member or a student member) of an independent trade union; ( a ) 2011 c. 25. ( b ) 2005 asp 10. ( c ) 1988 c. 52.
(e) the introducer, in obtaining and referring those details has complied with the provisions of the Data Protection Act 2018 ( a ), the Privacy and Electronic Communications (EC Directive) Regulations 2003( b ), the General Data Protection Regulation (EU) of the European Parliament and of the Council 2016/679( c ) and the Consumer Protection from Unfair Trading Regulations 2008( d ). (2) Paragraph 1(e) does not apply in the case of a referral to a legal practitioner or firm, organisation or body corporate that carries on the activity through legal practitioners. (3) In this article “legal practitioner” has the meaning given by article 73B(2) or (4).”.
37. After article 73J (inserted by article 36) insert— “PART 7
REVOCATIONS”
38. After paragraph 11 of Schedule 1 (controlled activities) insert— “PART 1A
CONTROLLED CLAIMS MANAGEMENT ACTIVITY
11A. —(1) A claims management activity carried out in Great Britain is a controlled claims management activity. (2) For the purposes of this paragraph, a claims management activity is one of the following activities: (a) seeking out persons who may have a claim, referring details of a claim or potential claim or a claimant or potential claimant to another person (including a person having the right to conduct litigation), or identifying a claim or potential claim or a claimant or potential claimant in respect of— (i) a personal injury claim; (ii) a financial services or financial product claim; (iii) a housing disrepair claim; (iv) a claim for a specified benefit; (v) a criminal injury claim; or (vi) an employment related claim. (b) advising a claimant or potential claimant, investigating a claim or representing a claimant in respect of a personal injury claim; (c) advising a claimant or potential claimant, investigating a claim or representing a claimant in respect of a financial services or financial product claim; (d) advising a claimant or potential claimant, investigating a claim or representing a claimant in respect of a housing disrepair claim; (e) advising a claimant or potential claimant, investigating a claim or representing a claimant in respect of a claim for a specified benefit; ( a ) 2018 c. 12. ( b ) S.I. 2003/2426. ( c ) Regulation (EU) 2016/679. ( d ) S.I. 2008/1277.
(f) advising a claimant or potential claimant, investigating a claim or representing a claimant in respect of a criminal injury claim; or (g) advising a claimant or potential claimant, investigating a claim or representing a claimant in respect of an employment related claim. (3) In this paragraph— (a) “claimant” includes, in civil proceedings in Scotland, a pursuer; (b) “defendant” includes, in civil proceedings in Scotland, a defender; (c) “personal injury claim” means a claim for personal injury within the meaning of the Civil Procedure Rules 1998( a ) in England and Wales and an action for damages for, or arising from, personal injuries within the meaning set out in section 8(7) of the Civil Litigation (Expenses and Group Proceedings) (Scotland) Act 2018 ( b ) in Scotland; (d) “financial services or financial product claim” includes a claim made under section 75 of the Consumer Credit Act 1974( c ); (e) “housing disrepair claim” means a claim under section 11 of the Landlord and Tenant Act 1985( d ) or section 4 of the Defective Premises Act 1972( e ) in England and Wales or an application in respect of the repairing standard under section 22 of the Housing (Scotland) Act 2006( f ), or 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 does not include claims for statutory nuisance under section 82 of the Environmental Protection Act 1990( g ); (f) “a claim for a specified benefit” means a claim for one of the following benefits— (i) industrial injuries benefit, within the meaning given by section 94 of the Social Security Contributions and Benefits Act 1992( h ); (ii) any supplement or additional allowance, or increase of benefit or allowance to which a recipient of an industrial injuries benefit may be entitled under that Act or any other Act; (iii) a benefit under a scheme referred to in paragraph 2 or 4 of Schedule 8 to that Act; or (iv) a benefit under the Pneumoconiosis etc. (Workers’ Compensation) Act 1979( i ). (g) “criminal injury claim” means a claim under the Criminal Injuries Compensation Scheme established under the Criminal Injuries Compensation Act 1995( j ); (h) “employment related claim” includes a claim in relation to wages and salaries and other employment related payments and claims in relation to wrongful or unfair dismissal, redundancy, discrimination and harassment; (i) “investigating” means carrying out an investigation into, or commissioning the investigation of, the circumstances, merits or foundation of a claim; and (j) “representing” means representation in writing or orally, regardless of the tribunal, body or person before which or to whom the representation is made. (4) In this paragraph, a person is to be treated as carrying on a controlled claims management activity in Great Britain when the activity is carried on— ( a ) S.I. 1998/3132. ( b ) 2018 asp 10. ( c ) 1974 c. 39. Section 75 was amended by S.I. 1983/1878 and 2010/1010. ( d ) 1985 c. 70. ( e ) 1972 c. 35. ( f ) 2006 asp 1. ( g ) 1990 c. 43. ( h ) 1992 c. 4. ( i ) 1979 c. 41. ( j ) 1995 c. 53.
