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IP Exempt Introducer Compliance Guide – FCA Updated

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IPs remaining exempt introducers and understanding what they can and can’t do in respect of director and employee redundancy claims is extremely important if IPs are going to avoid significant risks to their regulatory licences.

It is all too easy to inadvertently breach your exempt introducer status and with little or no guidance being issued from the regulators and trade bodies RCUK have published a free downloadable guide for IPs on our website called the ‘Compliance Guidance for Insolvency Practitioners v1.6 Includes FCA Regulatory Update’.

This guide covers how by working with an authorised FCA regulated company like RCUK you can remain exempt and completely de-risk breaching your exempt introducer status.

The ‘Compliance Guidance for Insolvency Practitioners v1.6 Includes FCA Regulatory Update’ can be downloaded by clicking on the following link to the RCUK website. (Link)

In compiling the above guide it initially appeared that the exemption under the Compensation (Exemptions) Order 2007 had not been ported across into the new regulatory regime due to some conflicting information contained in the FCA’s handbook section CMCOB 2.2.2 section 3 lead generators and the definitions of regulated activity specified in article 89G of the Regulated Activities Order.

RCUK are pleased to confirm that this is not the case and the provisions have been adopted into the Financial Services and Markets Act 2000 (Claims Management Activity) Order 2018. The only minor change is now a specific requirement within the order that the introducer complies with the provisions of:

  • The Data Protection Act 2018
  • The Privacy and Electronic Communications (EC Directive) Regulations 2003
  • The General Data Protection Regulation (EU) of the European Parliament
  • The Council 2016/679 and the Consumer Protection from Unfair Trading Regulations 2008.

For completeness and your own records the relevant section of the Act are confirmed below:

The Financial Services and Markets Act 2000 (Claims Management Activity) Order 2018:

89V.    Certain providers of referrals

(1) There is excluded from article 89G the activity of referring details of a potential claim or potential claimant to another person if:

(a)the person who refers those details (“the introducer”) carries on no other regulated claims management activity;

(b)the activity is incidental to the introducer’s main business;

(c)the details are only referred to authorised persons, legal practitioners, or a firm, organisation or body corporate that provides the service through legal practitioners;

(d)of the claims that the introducer refers to such persons, that introducer is paid, in money or money’s worth, for no more than 25 claims per calendar quarter; and

(e)the introducer, in obtaining and referring those details, has complied with the provisions of the Data Protection Act 2018, the Privacy and Electronic Communications (EC Directive) Regulations 2003, the General Data Protection Regulation (EU) of the European Parliament and of the Council 2016/679 and the Consumer Protection from Unfair Trading Regulations 200).

If you would like to know more about how RCUK can assist to maintain your exempt introducer status, please contact Gary Addison at rcuk@redundancy-claims.co.uk or 01625 462587.

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