1Claims Management RegulationBulletin No.20

August 2013

CMR business bulletins aim to highlight current developments and provide an update on issues that are of interest or affect claims management services.

This bulletin includes updated guidance on the rules businesses need to comply with when advertising and marketing their services; a joint regulatory statement on the referral fee ban; a reminder about new conduct rules which came into force on 8 July 2013; and a link to the CMR 2012/13 Annual Report.

Marketing Guidance These relationships are formally underpinned by memoranda of understanding (MoUs) as well If telesales calls, text messages or emails, or website as specific working documents which facilitate advertisements are made about your business, information sharing, evidence gathering and updated guidance about what you need to consider enforcement action; ensuring effective regulation of when marketing and advertising regulated claims all firms and markets within our respective remit.management services is now available.

This can be found on the Whats New section at Reminder recent rule changeswww.justice.gov.uk/claims-regulation. On the 8 July 2013, a number of changes to the

Conduct of Authorised Persons Rules came into The guidance gives details of the relevant Conduct effect. These changes include: Rules and provides an outline of other legislation to highlight your obligations when using different you must now refer to being regulated by the types of marketing to advertise regulated claims Claims Management Regulator rather than the management services. It also includes a checklist to Ministry of Justice this includes websites; assist you to ensure your marketing is compliant. your standard terms and conditions must be clear

and published prominently on your website; Referral Fee Ban: Regulatory you must obtain the clients written signature on a Relationships contract prior to any fee being taken; The following joint statement about enforcement of you must inform all of your contracted clients of the referral fee ban has been issued in conjunction any variation or suspension to your authorisation with the Solicitors Regulation Authority and the within 14 days of the action being taken. Financial Conduct Authority:

Please see the details of these changes at: www.As part of our approach to coordinating justice.gov.uk/downloads/claims-regulation/cmr-enforcement of the provisions of the Legal Aid bulletin/rules-guidance-bulletin-june-2013.pdfSentencing and Punishment of Offenders (LASPO) Act 2012 we have established a robust working relationship with our regulatory counterparts; the Solicitors Regulation Authority (SRA) and the Financial Conduct Authority (FCA).

CMR 2012/13 Annual Report Unfair contract terms helpThe Claims Management Regulation Annual Report The Office of Fair Trading recently launched their 2012-13 has now been published. It is available on Unfair Terms Hub at: www.oft.gov.uk/business-our website at: www.justice.gov.uk/downloads/ advice/unfairterms/publications/corporate-reports/cmr/cmr-annual- . report-2013.pdf This new resource introduces the Unfair Terms in

Consumer Contracts Regulations 1999 (UTCCRs) in The report includes summaries of the work of a more accessible format for businesses.the Claims Management Regulation (CMR) Unit; developments in the claims market, analysis of the Contracts you have with consumers must comply industry, an overview of complaints and details of with the UTCCRs as well as our Rules of Conduct. enforcement action taken during the year. We recommend that you use this resource if you

are reviewing your consumer contracts or looking to

Business visits to a consumers home draft new terms. Any breaches of the UTCCRs also constitute a breach of our rules. If you employ agents to visit customers in their

homes you must comply with The Cancellation of Contracts made in a Consumers Home or Place of Employment tribunal feesWork etc. Regulations 2008 see: www.legislation. From 29 July 2013 all employment tribunal claims and gov.uk/uksi/2008/1816/contents/made?sort=title Employment Appeal Tribunal appeals are required to

pay a fee or provide an application for fee remission.These regulations apply to any contract between a consumer and a business which is made during a visit Further information can be found on the Employment by the business. Fees Factsheet at: www.justice.gov.uk/downloads/

tribunals/employment/et-fees-factsheet.pdfPlease note that even if agents only collect signed packs, there may be circumstances where the regulations apply. For example, if the consumer hasnt signed the paperwork before the visit and the contract is made while your agent waits, the regulations will apply.

In particular, the regulations require you to leave a notice of the right to cancel with the client during the visit. Failure to comply constitutes a breach of the Conduct of Authorised Persons Rules 2013 (General Rule 5).