CILEx Compensation Arrangements

Why we have Compensation Arrangements

We have Compensation Arrangements because not all losses can be claimed for on a firm’s insurance. A claim can usually be made on a firm’s insurance, if the person doing your work has made a mistake and this has caused you a loss. It is not normally possible to make an insurance claim where someone in a firm has acted dishonestly.

You may be able to make a claim under the Compensation Arrangements if you suffer financial loss because someone in the firm doing your work dishonestly takes your money, or wrongly uses your money. Payments made are discretionary and based on your situation meeting certain criteria.

Who can make a claim?

We authorise firms to do legal work in specific areas of law. If the firm has carried out work for you in an area of law they are authorised to do, the Compensation Arrangements are available to you.

For example, a firm is authorised to provide conveyancing services. The firm does the legal work on your house sale, which is conveyancing. You also have a will prepared. The Compensation Arrangements would be available to you only on the house sale work.

You can check the areas of law we have authorised a firm to do in our Firm Directory.

The Compensation Arrangements will not be open to you if the firm was regulated by another regulator when the problem happened that led to your loss.

Making a claim

You can read the Consumer Guide: Accessing the Compensation Arrangements, to find out:

  • if you may be entitled to a payment under our Compensation Arrangements and
  • how to make a claim

If a consumer wishes to submit a claim, then they can download the Compensation Arrangements Claim form.

More information about the Compensation Arrangements can be obtained by contacting us at

If you are worried that a person in a firm may be acting dishonestly or taking money, contact us immediately at We have the power to close a firm, if this is appropriate, to stop money from being taken.