(1) The Financial Services and Markets Act 2000 is amended as follows.

(2) In section 1H (interpretation provisions for FCA's objectives) -

(a) in subsection (2), at the end of paragraph (c) insert "or to engage in claims management activity", and

(b) in subsection (8), at the appropriate place insert -

""engage in claims management activity" has the meaning given in section 21;".

(3) In section 21 (restrictions on financial promotion) -

(a) in subsection (1) -

(i) the words from "to engage" to the end become paragraph (a), and

(ii) at the end of that paragraph insert ", or

(b) to engage in claims management activity.",

(b) after subsection (10) insert -

"(10A) "Engaging in claims management activity" means entering into or offering to enter into an agreement the making or performance of which by either party constitutes a controlled claims management activity.

(10B) An activity is a "controlled claims management activity" if -

(a) it is an activity of a specified kind,