Compensation Bill [HL]

moved Amendment No. 14:"Page 3, line 3, leave out sub-paragraphs (i) to (iii) and insert—" ““(i)   setting and monitoring standards of competence and professional conduct for persons providing regulated claims management services, (ii)   promoting good practice by persons providing regulated claims management services, in particular in relation to the provision of information about charges and other matters to persons using or considering using the services, (iii)   promoting practices likely to facilitate competition between different providers of regulated claims management services,”” The noble Baroness said: My Lords, Amendment No. 14 seeks to address concerns raised in Grand Committee. The amendment replaces many of the criteria that the Secretary of State may take into account when designating a person to act as regulator. Significant concerns were raised by noble Lords that the provisions in the Bill should be made clearer in relation to his responsibility to ensure that authorised persons meet high standards of competence and professional conduct when providing regulated claims management services. The amendment also makes clear that the regulator will ensure that those providing regulated claims management services provide information to claimants about charges and other related matters. I think we all agree that it is vital that we deal with this as it is an area of particular concern to noble Lords. Consumers are not necessarily advised of free, alternative means of pursuing their claims, and that it not acceptable. It is a matter about which I know the noble Lords, Lord Hunt and Lord Goodhart, feel very strongly. When people are considering making a claim, they need to be able to make an informed choice about the best way forward on the basis of complete and transparent information about the options. For example, if they are pursuing a claim for a mis-sold endowment policy, they need to understand the implications of 25 per cent or more of their compensation being taken as a fee by the intermediary. That could increase the shortfall on their mortgage significantly and could be avoided if they used the free, alternative scheme available and pursued the claim directly themselves. We have also clarified the regulator’s role in relation to competition. On that point, I undertook to seek a view from the Office of Fair Trading. Competition enforcement officials in the OFT have confirmed that they do not have a responsibility for competition in relation to any regulator designated under Clause 3. Therefore, there is a role for the designated person to ensure that any practices in relation to regulated claims management services meet competition requirements. I hope that the amendment meets the concerns raised by noble Lords—I am grateful to them for doing so—and that it gives the reassurance they were seeking. I beg to move.