Explanatory note

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.