NEWS...
Limitation Act Consultation Imminent
The Ministry of Justice is intending to review the limitations period, as well reduce the limit from six years to three across the board. It is thought that the Ministry believes this would streamline legislation and give a clear guideline.
However, what the Ministry did not consider before this was the impact such a huge reduction would have on the industry – which is why the CSA began lobbying against any change.
This proved fruitful, with the Ministry agreeing to hold a wider consultation rather than go ahead with any change.
Angela Wright, from the Civil Law and Justice Division of the Ministry of Justice explained: "The present position is that it remains our intention that the 'Limitation Bill' be published in draft as part of the provisions of the Civil Law Reform Bill later this year. As a draft bill, the Civil Law Reform Biill will then be open to pre-legislative scrutiny."
When published, the draft bill will be accompanied by an 'Impact Assessment' to ensure the effects of any reform are properly understood. The Ministry is aware that the industry is concerned about any changes to the limitation periods and is currently preparing to consult in the near future with various industry bodies to help prepare the impact assessment.
It is too early to know whether the legislation will be introduced to Parliament. Publication of a draft bill does not guarantee introduction in the next session.
Either way, this is a huge step forward and a good indication of what we can expect in the coming months. The CSA is working closely with the CCUA on preparing an industry response to the impact assessment and the CSA is urging members to respond directly to the Ministry of Justice when the Impact Assessment is released.
For further information, contact Claire Aynsley, Head of Membership and Compliance on 0191 271 8043 or Claire@csa-uk.com.
Original article courtesy of CSA. For further information visit www.csa-uk.com.
