Part 2: Claims Management Services Charges for claims management services Section 33: Legal services regulators’ rules: charges for claims management services
This section gives the Law Society of England and Wales, the General Council of the Bar and the Chartered Institute of Legal Executives a power to make rules to cap the amount that legal service providers can charge in connection with relevant claims management activities. The Law Society of England and Wales has a duty to make such rules in relation to relevant claims management activity which concern claims in relation to financial products or services.
	In subsection (3) the Law Society of Scotland is given a similar power to make rules to cap the amount that those it regulates can charge in relation to a relevant claims management activity, but only in cases where the claim relates to a financial product or service.
	The rules must be made with a view to securing an appropriate degree of protection against excessive charges. However, the rules cannot specify charges for a ‘reserved legal activity’ within the meaning of the Legal Services Act 2007 or for the exercise of the right of audience or conduct of litigation by a Scottish legal practitioner.
	Subsection (10) provides that in relation to agreements entered into, or charges imposed, in contravention of the rules, the rules may provide for such agreements or obligations to pay the charge to be unenforceable, amounts paid under an agreement to be recovered and compensation to be paid for any losses incurred.
	This new section does not limit any existing power of the Law Society of England and Wales, the Law Society of Scotland, the General Council of the Bar or the Chartered Institute of Legal Executives to make rules.