Clarke’s solution excludes the creation of a criminal offence but instead relies on regulation enforced by the FSA, Claims Management Regulator, Law Society and Bar Council. Rather than setting out a comprehensive regime, Clarke relies on powers to create secondary legislation and regulatory rules to bring the ban into effect.

The initial ban would be confined to claims relating to injury or death, with the Lord Chancellor empowered to extend the categories. An exception is included for payments in relation to services (eg advertising) but the Lord Chancellor may limit the sums payable to control this potential loophole.

The proposals set out by Clarke are a measured response to referral fees which, in light of the cross- party support for a ban, should have good prospects of surviving the remaining stages of this bill’s passage.

Posted by James Arrowsmith, who specialises in high value personal injury claims, extensive experience of claims relating to head injuries and serious bodily injury, psychiatric damage and injuries to children.

James Arrowsmith
0121 237 3981
jarrowsmith@brownejacobson.com

The Council has also suggested that the European Insurance and Occupational Pensions Authority (EIOPA) should have until 31 March 2013 to issue guidelines on the contents of implementation plans. With the deadline for delivery of implementation plans set for 1 June 2013, and with most firms having already begun drafting (or, at least, considering) their implementation plans, the industry will be concerned that there will be insufficient time to respond to EIOPA’s guidance before the deadline for submission, just 2 month’s later.

The FSA is yet to issue any comment in response to the Council’s proposals.

Posted by Tim Johnson, who specialises in professional indemnity claims; defending professionals in the property, legal, financial services and IT sectors; also advises in relation to insurance coverage disputes.

Tim Johnson
0115 976 6557
tjohnson@brownejacobson.com

The change will come into force on 1 January 2012 and will only apply to complaints referred to FOS on or after 1 January 2012.

How a decision – which will soon mean a binding award of up to £150,000 – can be said to be “fair and reasonable” when a court of law could not reach the same outcome remains a sore point for those in the firing line.

And that is before one considers that, in so far as time limits are concerned, there is no 15 year long-stop date, in the same way that non-regulated firms are protected from stale claims by the Limitation Act 1980.

Other pressures abound – for example, the likely increase in professional indemnity insurance premiums and the drain on capital caused by the ever increasing FSCS levies.

Whilst giving consumers confidence in dealing with an FSA regulated firm is laudable, it is very easy to see why many IFA and broker businesses are under severe pressure.

We are likely to see more attempts to judicially review its decisions. It will be interesting to see if the courts will be able to find a way through the FOS’s very wide statutory authority.

Posted by Jonathan Newbold, who specialises in professional negligence, financial services and commercial dispute resolution; advises insurers on policy wording and coverage matters.

Jonathan Newbold
0115 976 6581
jnewbold@brownejacobson.com

Now there are signs that the food industry is going to get even more respite. The Food Standards Agency (FSA) is going to be part of the government’s review of “arms length” agencies that is due to take place this autumn.

The FSA has been subject to much criticism from the food industry in recent years – particularly for it’s lobbying for mandatory traffic light labelling and restrictions on TV ads for foods high in salt, sugar and fat.

Many of those in the industry are of the view that the food industry is responsible enough to look after itself and consumers are big enough to make their own choices about what is and what is not good for them. But is the fiscal deficit really a good reason to abandon  the body which when it comes to food is charged with protecting public health and public safety?

Posted by Fiona Carter
0115 976 6224
fcarter@brownejacobson.com

The proposal includes plans to secure the reduction in the fat and saturated fat content of sausages, meat pies and pastries, to make single packs of 30g or less more widely available and increase the promotion of/encouraging consumer interest in the smaller pack sizes. For all food products the FSA want companies to increase marketing efforts towards the promotion of reduced/low-fat options.

The FSA’s proposal is in line with the European Commissions Regulation on Nutrition and Health Claims which, contrary to popular belief, is there to encourage the use of nutrition and health claims on food not stifle such use. Healthy food is an area that is set to demand a huge amount of research and development in the forthcoming years, and Europe and the Government are likely to support this. However, once developed, the healthy food has to be signed off as actually “healthy” by the rigorous scientists at the European Food Standards Agency – this is currently where the plan for a healthy Europe may come unstuck!

Posted by Fiona Carter
0115 976 6224
fcarter@brownejacobson.com