UK Offence Report

The Legal Aid, Sentencing and Punishment of Offenders Act 2012 (Referral Fees) Regulations 2013

UK Statutory Instrument 2013 No. 1635 — creates 1 criminal offence.

1offences created
0recorded in force
0revoked
Made
2 July 2013
In force from
Not determined
Extent
Not stated
Subject
Corporate, financial services, company law, employment, charity, electoral and tax
Made under
And Wales The Legal Aid, Sentencing and Punishment of Offenders Act 2012, Legal Aid, Sentencing and Punishment of Offenders Act 2012

Explanatory note

(This note is not part of the Regulations) — published with the instrument by the department that made it. © Crown copyright, reused under the Open Government Licence v3.0.

These Regulations apply various provisions of the Financial Services and Markets Act 2000 (c. 8) (the “2000 Act”) to enable the Financial Conduct Authority (the “FCA”) to enforce the rules against referral fees contained in sections 56 to 60 of the Legal Aid, Sentencing and Punishment of Offenders Act 2012 (c. 10) (the “2012 Act”). These rules prohibit the payment and the receipt of any fee for the referral to another person of claims for damages in connection with personal injury or death. The rules may be enforced against referral fees authorised persons (as defined in regulation 2 and the Schedule), which are primarily those conducting insurance and insurance mediation or those in the same group such authorised persons. Enforcement action may also be taken in certain circumstances against the approved persons of referral fees authorised persons (approved persons include for example persons in certain senior management roles). Part 2 of these Regulations makes provision in respect of the FCA under these Regulations. In particular it confers on the FCA functions in relation to the supervision of, compliance with and monitoring of these Regulations and section 56 of the 2012 Act. Part 3 provides for certain payments to be treated as referral fees unless the referral fees authorised person shows that the payment was not made as a referral fee. Part 4 provides for referral fees authorised persons to give the FCA information at the FCA’s direction and for the restrictions on disclosure of information in the 2000 Act to apply. Part 5 applies the provisions of the 2000 Act on investigations with appropriate modifications. Part 6 provides for disciplinary measures and offences for breach of the rules against referral fees and provisions imposed by or under these Regulations. Regulations 14 and 15 enable the FCA to publish a statement of a breach of the Regulations by an referral fees authorised person or approved person. Regulation 16 enables the FCA to impose financial penalties for breach of the Regulations by such persons. Regulations 17 and 18 enable the FCA to restrict permission under the 2000 Act to carry out activities regulated under the 2000 Act or suspend or restrict approval of performance of functions controlled under the 2000 Act. Regulation 19 makes it an offence to mislead the FCA. Part 7 applies Part 25 of the 2000 Act concerning injunctions and restitution with appropriate modifications. Part 8 sets out procedural requirements to be followed by the FCA when taking disciplinary action under Part 6. Part 9 applies the provisions in the 2000 Act on hearings and appeals before the Upper Tribunal. Part 10 provides that referral fees authorised persons will be regulated persons for the purposes of rules against referral fees provided for in sections 56 to 60 of the 2012 Act. An impact assessment has not been prepared for this instrument, as impacts were considered as part of the impact assessment for the 2012 Act. That can be found at www.justice.gov.uk/downloads/legislation/bills-acts/legal-aid-sentencing/referral-fees-ia.pdf. and is published with the Explanatory Memorandum alongside these Regulations on www.legislation.gov.uk.

Offences created by this instrument

What Parliament said about it

Contributions, debates and written statements mentioning this instrument by name. Parliamentary material is reused under the Open Parliament Licence v3.0.

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