Brokers which act as introducers on personal injury cases for solicitors and insurers will be obliged to be compliant with claims management company regulation (CMCR), Insurance Times can reveal.

Speaking at the Claims Standards Council (CSC) inaugural meeting, Mark Boleat, the claims management regulator, said: "The FSA does not regulate brokers which refer cases to insurers. That activity comes under the remit of the CMC regulator."

However, there will be cases where brokers can avoid dual regulation. Boleat said that to be exempt from regulation companies, including brokers, must show they are incidentally involved in the case, and that no more than 25 cases per quarter are being sold to insurers or solicitors.

For claims management companies regulation will include a clamp down on advertising for claims, further rules on advising claimants and a ban on offering cash incentives in return for personal injury cases.

But the CSC said it would fight for a level playing field on regulation in order to bring solicitors and insurers into line with compliance requirements.

Andrew Twambley, chairman of the CSC and senior partner at claimant law firm Amelans, declared: "We have our regulations and we will ensure that our opponents act to the same standards. We will make sure the FSA and the Law Society will start to regulate on a level playing field."

Twambley also said the CSC was compiling evidence to present to the FSA on insurer capture of third party claims.

According to the FSA, it has not previously received any complaints on third party capture, but the CSC said it was ready to investigate the sector more fully.

Twambley added: "CMCs are not allowed to offer cash incentives, but solicitors can offer incentives in terms of referral fees. We have told the Law Society which is looking at the fee."