Justice minister stripped of powers over referral fee blunder

Justice Minister Jonathan Djanogly has been stripped of powers to regulate claims management firms.

Djanogly had been under fire after it emerged that he was heir to a £300m family business and that he had failed to declare his teenage children were shareholders in his brother-in-law’s businesses.

The two firms that advertise claims and are part of an industry that Djanogly regulated in government. Claims management companies hand over referral fees to pull in business, something which Djanogly was regulating.

The powers to regulate claims management firms will now be handed over to Justice Secretary Ken Clarke, reports the Guardian.