Moved by
Lord Faulks
65: After Clause 45, insert the following new Clause—
“Effect of rules against inducements
(1) The relevant regulator must ensure that it has appropriate arrangements for monitoring and enforcing the restriction imposed on regulated persons by section (Rules against inducements to make personal injury claims).
(2) A regulator may make rules for the purposes of subsection (1).
(3) The rules may in particular provide that, in relation to anything done in breach of that section, the relevant regulator may exercise any powers that the regulator would have in relation to anything done by the regulated person in breach of another restriction (subject to subsection (4)).
(4) A breach of section (Rules against inducements to make personal injury claims)—
(a) does not make a person guilty of an offence, and
(b) does not give rise to a right of action for breach of statutory duty.
(5) Subsection (6) applies in a case where—
(a) a regulated person has offered a benefit to a person, and
(b) it appears to the regulator that the offer of the benefit is an inducement to make a claim as mentioned in section (Rules against inducements to make personal injury claims)(1)(b).
(6) Rules under subsection (2) may provide for the offer of the benefit to the person to be treated as an inducement to make a claim as mentioned in section (Rules against inducements to make personal injury claims)(1)(b) unless the regulated person shows—
(a) that the benefit was offered for a reason other than encouraging the person to make a claim or to seek advice from a regulated person with a view to making a claim, or
(b) that the benefit is related to the provision of legal services in connection with the claim (see regulations under section (Rules against inducements to make personal injury claims)(4)).”
66: After Clause 45, insert the following new Clause—
“Inducements: interpretation
(1) In relation to an offer of a benefit which is an inducement to make a claim in civil proceedings for damages for personal injury or death or arising out of circumstances involving personal injury or death—
(a) a regulator is any person listed in column 1 below;
(b) a regulated person is any person listed in column 2;
(c) a regulator in column 1 is the relevant regulator in relation to the corresponding person in column 2.
| Regulator |
Regulated
person |
| The
General Council of the
Bar |
A
person authorised by the Council to carry on a reserved legal activity
within the meaning of the Legal Services Act
2007 |
| The
Institute of Legal
Executives |
A
person authorised by the Institute to carry on a reserved legal
activity within the meaning of the Legal Services Act
2007 |
| The
Law
Society |
A
person authorised by the Society to carry on a reserved legal activity
within the meaning of the Legal Services Act
2007 |
| A
licensing authority for the purposes of Part 5 of the Legal Services
Act 2007 (alternative business
structures) |
A
person who is licensed by the authority to carry on a reserved legal
activity |
| A
regulatory body specified for the purposes of this section in
regulations made by the Lord
Chancellor |
A
person of a description specified for the purposes of this section in
regulations made by the Lord Chancellor in relation to the body
specified under
column 1 |
(2) For the purposes of this section and sections (Rules against inducements to make personal injury claims) and (Effect of rules against inducements)—
“benefit” means—
(a) any benefit, whether or not in money or other property and whether temporary or permanent, and
(b) any opportunity to obtain a benefit;
“claim” includes a counter-claim;
“legal services” means services provided by a person which consist of or include legal activities (within the meaning of the Legal Services Act 2007) carried on by or on behalf of that person;
“personal injury” includes any disease and any other impairment of a person’s physical or mental condition.
(3) For the purposes of this section and section (Effect of rules against inducements) whether an offer of a benefit is an inducement to make a claim is to be determined in accordance with section (Rules against inducements to make personal injury claims).”
67: After Clause 45, insert the following new Clause—
“Inducements: regulations
(1) This section applies to any regulations under section (Rules against inducements to make personal injury claims) or (Inducements: interpretation).
(2) The regulations are to be made by statutory instrument.
(3) The regulations may include consequential, supplementary, incidental, transitional, transitory or saving provision.
(4) Regulations under section (Rules against inducements to make personal injury claims) may not be made unless a draft of the instrument containing the regulations has been laid before, and approved by a resolution of, each House of Parliament.
(5) A statutory instrument containing regulations under section (Inducements: interpretation) is subject to annulment in pursuance of a resolution of either House of Parliament.”