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.