The Claims Standards Council (CSC) may continue to play a key role in the claims management industry, despite the government ruling it out as a potential regulator of the sector.

Speaking to the House of Lords last week about the Compensation Bill, Department for Constitutional Affairs minister Baroness Ashton said the invitation was now open to bodies such as the Law Society and the Financial Services Authority to apply for the role. If they did not take up the offer, the government should itself step in, she said.


Baroness Ashton said: 'I would encourage the CSC to consider options for continuing involvement, and to continue to contribute to identifying abuses, raising standards and helping to shape the implementation of the legislation; we need a strong trade body to provide that crucial representation for the claims management sector - a body that we can work with to ensure that regulation is applied effectively and sensibly.'


A spokesman for the CSC, whose membership includes 41 law firms, said it will consult its members over the next few weeks before a formal decision is taken about the future. He added: 'One of the options under consideration is the formation of a trade association, which many members seem to favour. The government has indicated to us that it would like the experience and knowledge of the CSC's members to continue to play a significant role.'


A Law Society spokesman said it had no intention of intervening in the situation.