1. Proposals for changes to the SIA Approved Contractor Scheme 1

2. 2 Background Context Implementation of business licensingImplementation of business licensing Elements of ACS moved into business licensingElements of ACS moved into business licensing Assessment contracts expire March 2015Assessment contracts expire March 2015 Current arrangements for ACS 8-9 years oldCurrent arrangements for ACS 8-9 years old Developing views of approved contractors and buyersDeveloping views of approved contractors and buyers SIA Board has agreed a set of proposalsSIA Board has agreed a set of proposals Assumptions We will continue to operate the ACS alongside business licensing Opportunities may arise to extend the scope of voluntary approval

3. Development work 3 Proposals ACS Survey 2013 Forums Previous ACS reviews ACS Strategy and Standards Group ACS Strategy and Standards Group SIA strategic consultative group SIA strategic consultative group

4. 4 There are companies achieving high scores who are not performing for the other 363 days of the year. Why not consider unannounced audits? There needs to be a clear benefit for ACS companies compared with standard regulated businesses, otherwise - what's the point? I would not like the industry to go backwards Not enough inspections take place by the SIA to enforce ACS The ACS needs to adapt. That adaptation needs to look at how the assessment process is completed. We are already audited to death compared to most industries. Some industry views We have invested a lot of money in the ACS

5. Factors for consideration Overall cost of Business licensing and ACS Cost burden is very different for large and small businesses Protection of the public and raising standards Differentiation Scoring and benchmarking Buyer views Scheme viability 5

6. Some key proposals 1.Refine the purpose of the ACS as ‘to protect the public through recognising and promoting excellence’ and position the ACS as the security industry hallmark of excellence. 2.Maintain and enhance the benefits of the ACS where feasible 3.Tighten eligibility criteria to require a minimum period of successful trading for new ACS applicants. 6

7. Proposals – ACS assessment 1.Retain and update the ACS standard but discontinue the use of the ACS workbook, assessing approved contractors directly against the ACS standard. 2.Introduce two elements to assessment Inspect approved contractors against core requirements on an unannounced, risk-assessed basis Assess directly against the ACS standard on a planned, risk- assessed basis 3.The SIA may undertake both assessment and inspection but also use subcontractors or a managed service provider 4.Review the passport route to approval – current passport schemes may not be compatible with the proposed changes. 7

8. Future assessment Assessment at least once every three years Supplemented by unannounced/short-notice inspections- Head Office and/or site visits Reporting by exception – reduced report We could publish more detailed information on scoring and benchmarking 8

9. Potential savings Overall reduction in assessment duration for lower risk companies Reporting costs minimised Reduced need to prepare for assessment- indirect costs 9

10. Your views… 1.What are the risk factors we should consider indetermining the frequency and duration ofassessment/inspection? 1.What are the risk factors we should consider in determining the frequency and duration of assessment/inspection? 2.What factors should we consider when planning andconducting unannounced inspections of yourbusinesses? 2.What factors should we consider when planning and conducting unannounced inspections of your businesses? 3.What should be the minimum period of successfultrading for (new) ACS applicants? 3.What should be the minimum period of successful trading for (new) ACS applicants? 4.Are there any other changes you think we shouldimplement to the ACS? 4.Are there any other changes you think we should implement to the ACS? 10

11. How will they fit together? Business LicensingACS Nature: MandatoryVoluntary Scope: 4,000 licensed businessesCurrently 764 Aim: Reduce criminality and poor business practice Recognise and promote excellent security provision Requirements: Fit and properQuality of service Benefits to security supplier: Licence to trade Fair competition ACS mark Licence dispensation Eligible for contracts Differentiation from 4,000 Competency for business licence Insurance discount Future benefits? 11