PERG 2.4A Link between regulated claims management activities and Great Britain

Under section 22(1B) of the Act, a claims management activity specified in the Regulated Activities Order is only a regulated activity if it is carried on by way of business in Great Britain.

1. (1)

   Article 89F(3) of the Regulated Activities Order provides that a person is to be treated as carrying on a regulated claims management activity when either or both of the conditions in (2) and (3) are met.

2. (2)

   The condition in this paragraph is that the activity is carried on by a person who is:

   1. (a)

      a natural person who is ordinarily resident in Great Britain; or

   2. (b)

      a person, other than a natural person, who is constituted under the law of a part of Great Britain.

3. (3)

   The condition in this paragraph is that the activity is carried on in respect of a claimant or potential claimant who is:

   1. (a)

      a natural person who is ordinarily resident in Great Britain; or

   2. (b)

      a person, other than a natural person, who is constituted under the law of a part of Great Britain.

Ordinary residence is to be determined for these purposes by reference to the Statutory Residence Test set out in Schedule 45 to the Finance Act 2013:

1. (1)

   at the time of the facts giving rise to the claim or potential claim; or

2. (2)

   at the time when the activity is carried out in respect of that claimant or potential claimant.

Accordingly, the following list gives examples of activity which would be regulated claims management activity if carried on by way of business and where no exemption or exclusion applies:

1. (1)

   a sole trader in England and Wales advising a natural person who is ordinarily resident in Northern Ireland in relation to a financial services or financial product claim;

2. (2)

   a company incorporated in Northern Ireland advising a natural person who is ordinarily resident in Scotland in relation to a personal injury claim;

3. (3)

   a company incorporated in France advising a natural person who is ordinarily resident in England in relation to a financial services or financial product claim;

4. (4)

   a company incorporated in Scotland investigating a personal injury claim for a natural person who is ordinarily resident in Germany; and

5. (5)

   a company incorporated in India seeking out details of claimants with personal injury claims who are ordinarily resident in Great Britain.