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Introducer Compliance Guidance

Requirement to be Authorised.

Seeking out and advising on a Directors Redundancy Claim is a regulated activity as set out the Financial Services and Markets Act 2000 and The Financial Services and Markets Act 2000 (Claims Management Activity) Order 2018. To provide  this service you must be authorised and regulated by the Financial Conduct Authority unless you can demonstrate you are exempt from authorisation. You may find the following link of use.

https://www.fca.org.uk/firms/claims-management-regulation

Exempt Referrers.

Referrers that meet certain criteria are exempt from authorisation. An exempt referrer is defined by Article 89V in Part 3 of the Financial Services and Markets Act 2000 (Claims Management Activity) Order 2018.

You are an Exempt Introducer if you meet all of the following criteria:

  • You carry on no other regulated claims management activity.
  • The activity is incidental to your main business.
  • The details are only referred to authorised persons, legal practitioners, or a firm, organisation or body corporate that provides the service through legal practitioners.
  • Of the claims that you refer to such persons, you are paid, in money or money’s worth, for no more than 25 claims per calendar quarter: and
  • In obtaining and referring those details you have complied with the provisions of the Data Protection Act 2018(33), the Privacy and Electronic Communications (EC Directive) Regulations 2003(34), the General Data Protection Regulation (EU) of the European Parliament and of the Council 2016/679(35) and the Consumer Protection from Unfair Trading Regulations 2008(36).

DOs and DON’T’s of Referring Clients to RCUK

DO

Do Identify that the Director must be/have been an employee of the company.

Do advise that the client may make a claim themselves to the RPS but establishing employment status is a complex process.

Do identify that to claim Directors Redundancy Pay the company must enter into liquidation.

Do advise that the funds received from the RPS can be used to meet liquidation costs.

Do identify if there is more than one director that may be eligible to make a RPS claim.

Do use website and social media but ensure that any reference to a Directors Redundancy Claim is limited to information that is in the public domain. Information in the public domain includes maximum weekly cap and calculation is based on age and length of service.  

Do provide RCUK with identification of any websites or social media in order that they may verify that the content is compliant.

Do advise RCUK if you refer Directors Redundancy Claims to any third parties.

Do advise RCUK if you make referrals for any other regulated claims management services.

DO NOT

Do not aggressively market RCUK’s services. The identification of a possible Directors redundancy claim should be incidental to the services you offer.

Do not use marketing material unless authorised by RCUK.

Do not refer clients unless you have obtained their consent for RCUK to contact them by telephone or e mail. If a client does not give consent, please provide the client with RCUK’s contact details and website information. Please advise the client that in contacting RCUK they should identify they have been referred by you.

Do not discuss RCUK’s fees with the client.

Do not make or give any representations, warranties or other promises concerning the claims handling services provided by RCUK including claim values or time frames.  However, Do advise that the experienced team at RCUK will be able to answer specific questions and give a financial illustration. Providing an example to clients of an award may mis manage expectations and result in the client not proceeding with RCUK’s services or proceeding with liquidating their business.

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