{
  "url": "https://openlegislation.uk/draft-compensation-exemptions-order-2006/article-6",
  "json_url": "https://openlegislation.uk/draft-compensation-exemptions-order-2006/article-6.json",
  "legislation": "ukdsi/2006/0110754018",
  "legislation_title": "The Compensation (Exemptions) Order 2006",
  "legislation_url": "https://openlegislation.uk/draft-compensation-exemptions-order-2006",
  "path": "article/6",
  "kind": "article",
  "number": "6",
  "heading": "Charities and not-for-profit advice agencies",
  "text": "(1) Section 4(1) of the Act does not prevent the provision of a regulated claims management service by a not for profit body, that is, a body that, by or under its constitution—\n(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\n(b) subject to paragraph (2), 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.\n(2) A body is not prevented from being a not-for-profit body for the purposes of paragraph (1) if its constitution permits:\n(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;\n(b) in the case of a not-for-profit body that is a charity, the payment to a member of a benefit to which he is entitled because he is a beneficiary of the charity; or\n(c) the purchase, out of the body’s funds, of indemnity insurance for trustees of the body.",
  "extent": null,
  "status": null,
  "version": "current",
  "annotations": [],
  "outstanding_effects": [],
  "provenance": {
    "source": "legislation.gov.uk",
    "source_url": "https://www.legislation.gov.uk/ukdsi/2006/0110754018/article/6",
    "retrieved_at": "2026-10-30T15:20:35.359741+00:00"
  },
  "licence": "Open Government Licence v3.0",
  "licence_url": "https://www.nationalarchives.gov.uk/doc/open-government-licence/version/3/",
  "attribution": "Contains public sector information licensed under the Open Government Licence v3.0. Source: legislation.gov.uk, The National Archives."
}