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.
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:
DOs and DON’T’s of Referring Clients to RCUK
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 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.
Does accepting a new job offer before the date of redundancy prevent a director making a claim for redundancy to the RPS
If you are looking to close your limited company, you may have attempted to strike it off by submitting a DS01 form to Companies House. This process is also sometimes referred to as dissolving or company dissolution.
A Creditors’ Voluntary Liquidation (CVL) is an official procedure whereby a company’s assets are liquidated in order to pay creditors. It’s typically initiated by directors when their company becomes insolvent and there is no hope of business recovery.
Redundancy claims are a very professional company, Caroline who is dealing with our case is friendly, compassionate and very clear in explaining everything during this difficult time. The service we have received has been amazing, Thank you.Tina Hill Director of a professional services firm