Conduct of Authorised Persons Rules. The consultation began on an informal basis last year when members of the Claims Management Regulatory Consultative Group were asked to contribute to plans to amend the rules. The consultation is now open to anyone with an interest in CMCs until 3 October 2012.

The key proposed amendments focus on:  

  • What CMCs are able to say about their regulatory status when soliciting business;
  • Pre-contractual information requirements; and
  • Client updates, including progress of their claims and any changes to costs  

Other issues addressed include fees charged by CMCs on cold calling and non ‘cash in hand’ compensation awards. Also of interest is the announcement that there will be a full ban on CMCs’ ability to offer financial rewards or other benefits as an inducement to make a claim as of April 2013. This issue was first addressed back in October 2010 as it was considered a contributory factor towards the growth of the compensation culture, something which the Jackson Civil Justice Reforms have been keen to curtail. The consultation presents those who suffer the day-to-day consequences of poor quality CMC conduct with another opportunity to move regulation in the right direction as it is clear that the regulator is listening.