Claims Management Regulators Consultation

Claims Management Regulators – part of the Ministry of Justice – have launched a consultation today to amend the Conduct of Authorised Persons Rules 2007.

The draft proposals involve amending Client Specific Rule 6 (b) of the Conduct of Authorised Persons Rules 2007 in order to prohibit to offering of cash payments or similar benefits as an inducement to make a claim. If implemented, the amendments would prevent firms from offering cash rewards for those claimants that are accepted as having a case. Currently, the rules only prevent an immediate cash payment or similar reward, but there are practices that offer a reward that is not “immediate”.

While the report from Lord Young was focused on health & safety, this proposed amendment would affect all authorised persons, including those representing employees, and so should have some positive benefit for employers.

The consultation will remain open until 10 February 2011.

Filed under: General News, Laws & Regulations by Employment Law Clinic           Post created on: December 23rd, 2010