Compensation Bill [HL]

moved Amendment No. 35:"Page 8, line 23, leave out from ““Regulations”” to end of line 35 and insert ““shall require the Regulator not to grant an application for authorisation unless satisfied of the applicant’s competence and suitability to provide regulated claims management services of the kind to which the application relates." (2)   For that purpose the Regulator shall apply such criteria, and have regard to such matters, as the regulations shall specify. (3)   Regulations by virtue of sub-paragraph (2) may, in particular— (a)   refer to a provision of directions, guidance or a code given or issued under section 3(4); (b)   relate to persons who are or are expected to be employed or engaged by, or otherwise connected with, the applicant; (c)   relate to— (i)   criminal records; (ii)   proceedings in any court or tribunal; (iii)   proceedings of a body exercising functions in relation to a trade or profession; (iv)   financial circumstances; (v)   management structure; (vi)   actual or proposed connections or arrangements with other persons; (vii)   qualifications; (viii)   actual or proposed arrangements for training; (ix)   arrangements for accounting; (x)   practice or proposed practice in relation to the provision of information about fees; (xi)   arrangements or proposed arrangements for holding clients’ money; (xii)   arrangements or proposed arrangements for insurance.”” The noble Baroness said: Amendment No. 35 makes it clear that regulations will require the regulator to satisfy himself of the competence and suitability of an applicant before granting authorisation. It also puts the regulator under a duty to apply the criteria set out in regulations. During the debates in Grand Committee, noble Lords made a number of helpful suggestions about what these minimum criteria should be. The amendment specifies the areas to which the criteria should relate. We want to retain flexibility of the regulatory framework to ensure it can respond to the changing nature of the market, so the precise detail will be expanded in regulations and of course more criteria can be added. As I have already mentioned, in addition to information about the company, the controlling individuals in that company will be required to provide personal information to which I have already referred. They will also be required to make a statement of competence demonstrating that they have the knowledge and skills required to provide the regulated service, including details of relevant experience. The applicant, person or organisation will be required to certify that they have read and understood the rules and codes of practice, and sign a declaration that they comply, and will continue to comply, with them. The regulator will then assess an application, and will make a judgment, based on all the evidence available, about whether or not to grant authorisation. That will take account of both the applicant’s fitness and competence to provide the regulated service, and compliance with the rules and codes of practice. The procedure I have outlined will allow a robust assessment of the competence and suitability of applicants—something which I know concerns the noble Lord, Lord Hunt of Wirral. I hope he will welcome the amendment as helping to ensure that only those who meet the standards are allowed to offer regulated claims management services to consumers. I beg to move.