Part 2: Claims Management Services Transfer of regulation of claims management services to FCA Section 27: Transfer to FCA of regulation of claims management services
Subsection (2) amends Section 1H of the Financial Services and Markets Act 2000 so that references in the Financial Conduct Authority’s statutory objectives to "regulated financial services" includes services provided by authorised persons in communicating, or approving the communication by others of, invitations to engage in claims management activity.
	Subsection (3) amends section 21 of the 2000 Act so that a person cannot communicate an invitation or inducement to engage in controlled claims management activity unless authorised. A new subsection (10A) and (10B) is inserted into Section 21. They set out what constitutes a controlled claims management activity. Subsection (2) also amends the reference in Paragraph 25 of Schedule 2 to the 2000 Act so as to enable the order-making power in that paragraph to apply in respect of those provisions only.
	Subsection (4) amends Section 22 of the 2000 Act so that the Treasury is able to specify ‘claims management’ activity as a "specified activity" for the purposes of that Act and the Financial Services and Markets Act 2000 (Regulated Activities) Order 20011. It adds an additional subsection (1B) to Section 22, which clarifies that an activity is a regulated activity for the purpose of the Act if it is an activity of a specified kind which is carried on by way of business and relates to a claim of a specified kind.
	Subsection (5) amends section 137R of the 2000 Act so that the Financial Conduct Authority may make rules about the communication, or the approval of another person’s communications by authorised persons, of invitations or inducements to engage in claims management activity.
	Subsection (6) amends Section 243C (Complaints to the Financial Conduct Authority by consumer bodies) of the 2000 Act 2000 to enable a designated consumer body to make a complaint to the Financial Conduct Authority in respect of the market in Great Britain for claims management services where the market is damaging the interests of consumers.
	Subsections (7), (8) and (9) amend provisions in the 2000 Act relating to the Financial Conduct Authority’s competition powers. The relevant competition powers under Part 16A of the 2000 Act will apply to claims management services in Great Britain.
	Subsection (10) inserts into Section 417 (definitions) a definition of "regulated claims management activity" for the purpose of the 2000 Act.
	Subsection (11) inserts a new Section 419A into the 2000 Act defining claims management services. It also inserts a new Section 419B which enables the Treasury to specify by Order circumstances in which a person is, or is not, carrying on a regulated claims management activity in Great Britain.
	Subsection (12) amends Section 429 to specify that orders made under new Sections 419B and 21(10B) are subject to the affirmative procedure. Subsection (9) also inserts a new subsections (7A) and (7B) which provide that any first order made under section 419A(4) in relation to treating specified benefits as a claim for the purposes of section 419A is subject to the affirmative procedure.
	Subsection (13)(a) clarifies that the power in paragraph 25 of Schedule 2 to the 2000 Act applies to claims management activities as specified under Section 22(1B). This ensures that the Treasury is able to make such consequential, transitional or supplemental provision as it considers appropriate for the purposes of, or connected with, any provision made under the new section 22(1B).
	Subsection (13)(b) amends paragraph 26 of Schedule 2 to the 2000 Act meaning an order made under section 22(1B) is subject to the affirmative procedure.
	Subsection (14) enables the Secretary of State to put into place a transfer scheme for staff, property, assets and liabilities of the Claims Management Regulation Unit to the Financial Conduct Authority and from the Office of Legal Complaints to Financial Ombudsman Service to put into place a similar transfer scheme. This subsection will extend to England and Wales only.
	Subsection (15) introduces the transitional provisions set out in Schedule 5.