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Compensation Act

The Compensation Act 2006 received Royal Assent on 25 July 2006. Part 2 of the Act provides the statutory framework for the regulation of claims management services. In line with the Government's commitment to bring the Act into force as soon as possible a third commencement order has been made. This brings into force the prohibition and offences sections. From 23 April 2007 providing a regulated claims management service without authorisation, an exemption, being subject to a waiver or an individual acting otherwise than in the course of business will be prohibited. Those providing claims management services will be required to give consumers clear advice about the validity of their claim, options for funding the costs and provide a complaints mechanism if things go wrong. The claims regulation website at www.claimsregulation.gov.uk provides a register of all authorised persons. This order follows the Compensation Act 2006 (Commencement No.1) (SI 2006/3005 (C. 107)) that came into force on 1 December 2006 allowing regulation to commence. The Compensation Act 2006 (Commencement No. 2) (SI 2007/94 (C.5)) came into force on 23 January 2007 formally establishing the Claims Management Services Tribunal.