Part two of the Compensation Bill provides a statutory framework which involves regulation of claims management companies and services. The initial controller will be the Secretary of State who will regulate the same with a senior civil servant. Anyone providing claims management services without the right registration confirmation may be investigated by a special trading standards unit that will be established to support the provisions of the bill.

Under the Compensation Bill It will be an offence to provide claims management services without the right authority, the offence can carry a two year prison sentence so this is a positive move to eliminate bogus and unnecessary middlemen who have little if anything constructive to add to the claims process. Those who are registered and approved must provide consumers with clear advice about their claims and all the options for how the claims will be funded.

A clear and understandable complaints procedure will also need to be advised in case things go wrong. The Law is expected to come into force by early 2007 for personal injury compensation claims.