The UK Treasury has proposed opening a new information gateway between the Financial Services Authority (FSA) and the Claims Management Regulator (CMR) so the two regulatory bodies can share information of mutual interest. The Treasury expects that the gateway would increase the efficiency and effectiveness of regulatory activities but would not cause significant savings or impose additional costs.

The CMR is currently part of the Ministry of Justice and is responsible for regulating the activities of claims management companies when making claims for compensation in certain sectors. It operates under the Compensation Act 2006, and claims sectors currently subject to regulation are: personal injury; financial products and services; employment; criminal injuries compensation; housing disrepair; industrial injuries; and disablement benefit. Sectors such as solicitors and insurers that are already regulated are exempt from regulation under the Compensation Act.

The information gateway would necessitate the introduction of secondary legislation to amend the Financial Services and Markets Act 2000 (Disclosure of Confidential Information) Regulations 2001. The Treasury has opened a public consultation on the proposed changes, which allow information to be passed from the FSA to the CMR. The amendments take into account that some FSA information may not be disclosed or is subject to conditions on onward disclosure because of restrictions imposed under European Directives.

The full consultation paper can be seen by clicking here. Responses must be received before 14 May 2009.

The full consultation paper can be seen by clicking here. Responses must be received before 14 May 2009.