The Compensation (Exemptions) Order 2007
| Year | 2007 |
2007 No. 209
Consumer Protection, england and wales
The Compensation (Exemptions) Order 2007
Made 30th January 2007
Coming into force in accordance with article 2
This Order is made in exercise of the powers conferred by section 6 of the Compensation Act 20061.
A draft of this Order has been laid before Parliament in accordance with section 15(7) of that Act and approved by a resolution of each House of Parliament.
Accordingly, the Secretary of State makes the following Order:
Citation
1. This Order may be cited as the Compensation (Exemptions) Order 2007.
Commencement
2. This Order comes into force on the day after the day on which it is made.
Definition—“the Act”
3. In this Order, “the Act” means the Compensation Act 2006.
Legal practitioners
4.—(1) Section 4(1) of the Act does not prevent the provision of a regulated claims management service in the circumstances that—
(a)
(a) the service is provided—
(i) by a legal practitioner;
(ii) by a firm, organisation or body corporate that provides the service through a legal practitioner; or
(iii) by an individual who provides the service at the direction, and under the supervision, of a legal practitioner who is—
(aa) his employer or fellow employee; or
(bb) a director of a company, or a member of a limited liability partnership, that provides the service and is his employer; and
(b)
(b) the legal practitioner acts in the normal course of practice in a way permitted by the professional rules to which he is subject.
(2) In paragraph (1), “legal practitioner” means—
(a)
(a) a solicitor, barrister or advocate of any part of the United Kingdom;
(b)
(b) a Fellow of the Institute of Legal Executives;
(c)
(c) a European lawyer, as defined in the European Communities (Services of Lawyers) Order 19782;
(d)
(d) a registered foreign lawyer, as defined in section 89(9) of the Courts and Legal Services Act 19903; or
(e)
(e) any other member of a legal profession, of a jurisdiction other than England and Wales, that is recognised by the Law Society or the General Council of the Bar as a regulated legal profession.
Persons providing services regulated under the Financial Services and Markets Act 2000
5.—(1) Section 4(1) of the Act does not prevent the provision of a regulated claims management service by a person if in providing that service, he is carrying on a regulated activity for the purposes of section 19 of the Financial Services and Markets Act 20004(“FSMA”), or would be doing so except that—
(a)
(a) he is an exempt person (that is, a person who is exempt from the general prohibition under FSMA), or
(b)
(b) he has the benefit of an exclusion under the Financial Services and Markets Act 2000 (Regulated Activities) Order 20015.
(2) In paragraph (1)(a),“general prohibition” has the meaning given by FSMA.
(3) References in paragraph (1) to a regulated activity carried on by a person must be read with—
(a)
(a) section 22 of FSMA;
(b)
(b) any relevant order under that section; and
(c)
(c) Schedule 2 to FSMA.
Charities and not-for-profit advice agencies
6.—(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—
(a)
(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
(b)
(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.
(2) A body is not prevented from being a not-for-profit body for the purposes of paragraph (1) if its constitution permits:
(a)
(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;
(b)
(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
(c)
(c) the purchase, out of the body’s funds, of indemnity insurance for trustees of the body.
Independent Complaints Reviewers
7. Section 4(1) of the Act does not prevent the provision of a regulated claims management service by a person appointed from time to time by a statutory or other public body as an Independent Complaints Reviewer or Independent Case Examiner in the course of carrying out her duties under the appointment.
Motor Insurers Bureau
8. Section 4(1) of the Act does not prevent the provision of a regulated claims management service by the Motor Insurers Bureau (being the company limited by guarantee mentioned in section 95(2) of the Road Traffic Act 19886).
Medical Protection Society and medical defence unions
9. Section 4(1) of the Act does not prevent the provision of a regulated claims management service—
(a) by the Medical Protection Society Limited to its members;
(b) by The Medical Defence Union Ltd to its members; or
(c) by The Medical and Dental Defence Union of Scotland Limited to its members.
Independent trade unions
10.—(1) Section 4(1) of the Act does not prevent the provision of a regulated claims management service by an independent trade union to—
(a)
(a) a member (including a retired member or a student member) of the trade union;
(b)
(b) a member of the family of a member referred to in sub-paragraph (a); or
(c)
(c) a former member of the trade union to whom the trade union may, under its rules, provide claims management services, or a member of the family of such a former member.
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