Christopher Ross White, the director of a Swansea based company dealing in PPI claims management, has given an undertaking preventing him from running a company for nine years from 2 March*2017.

On 3 October 2015, following an investigation by the Ministry of Justice Claims Management Regulation Unit, the company was found to be in breach of parts of the Compensation (Claims Management Services) Regulations 2006 and a fine was imposed upon the company.

The business subsequently went into liquidation on 2 November 2015 owing ?1,209,601 to creditors, including the ?567,423 Ministry of Justice fine.

Following complaints from the general public, the Ministry of Justice Claims Management Regulation Unit had earlier carried out an investigation into Rock Law?s procedures and found that it failed to comply with the conditions of it?s authorisation and meet the standards of the Conduct of Authorised Persons Rules (CAPR) 2014.

Rock Law:
was contracting with clients during the initial sales call or shortly afterwards, not allowing clients sufficient time to consider pre-contractual documentation
failed to monitor sales agents and failed to exercise sufficient control over them and/or failed to ensure that the training of staff was adequate resulting in staff giving misleading content during sales calls
failed to maintain appropriate records and audit trails showing the company had conducted itself responsibly overall, acted with professional diligence and complied with the rules; as a consequence of the lack of records, was unable to evidence compliance with the CAPR.

Sue Macleod, an Insolvency Service Chief Investigator of Insolvent Investigations, Midlands & West said:

The Compensation (Claims Management Services) Regulations 2006 are there to ensure the general public is offered protection from over zealous sales techniques by agents for companies operating within the claims management sector.

Director?s have a duty to ensure they exercise reasonable skill, care and diligence over company operations and that they do not allow the company to breach legislation resulting in financial penalties which impact upon the company continued success. This should serve as a warning to other directors who may feel tempted to breach legislation intended to serve as protection for the public.