The Regulatory Enforcement and Sanctions (RES) Act 2008

The Regulatory Enforcement and Sanctions (RES) Act 2008 - Background Better Regulation Agenda Applicable to National and Local Regulators Initial proposal – Fire Authorities omitted Fire Authorities and the Fire Safety Order included after first consultation Consists of 4 main parts Philip Hampton – Chartered Accountant, worked as Finance Director for Lloyds Bank before moving to the Treasury to complete the report

The Regulatory Enforcement and Sanctions (RES) Act Part One – Statutory October 2008 Local Better Regulation Office (LBRO) established as a statutory body Duty to improve regulatory effectiveness and reduce burden on business

The Regulatory Enforcement and Sanctions (RES) Act 2008 Part two – Statutory duty April 2009 Primary Authority Scheme Aim - Consistent and co-ordinated regulatory enforcement by Local Authorities Primary Authority Scheme – duty for a local authority, proposing enforcement action, to consult with the Primary Authority Primary Authority will determine if proposed enforcement action is inconsistent with advice or guidance given and may within 5 working days, the day after it was notified of the intended action, direct a local authority not to continue with the action The local authority may not commence enforcement action during the 5 day period, may appeal to the LBRO who will determine if the action may proceed - Primary Authority may, in consultation with the regulated body, draw up an inspection plan that will influence other authorities inspection plans

The Regulatory Enforcement and Sanctions (RES) Act 2008 Part Two Relevant Legislation in Schedule 3 - Regulatory Reform (Fire Safety) Order 2005 - The Fireworks Act 2003 - The Explosives Act – 1875 and 1923 - Petroleum (Regulations) Act 1923 and 1936 HOWEVER!!!!!!

The Regulatory Enforcement and Sanctions (RES) Act 2008 Part Two Representations made by CFOA to BERR Consultation on Primary Authority Schemes commenced 10/9/2008 – 3 months Proposal to exempt – Fire Safety Order - Licensing Act - Gambling Act

The Regulatory Enforcement and Sanctions (RES) Act 2008 Part Two – Implications for FRA’s Those FRA’s that carry out a relevant function ie enforce standards and impose sanctions in any legislation that remains in schedule 3, ( ie; Petroleum Act and Explosives Act) will be subject to the Primary Authority Scheme 1.Regulators should recognise that a key element of their activity will be to allow, or even encourage, economic progress and only intervene when there is a clear case for protection. Historically FRS have required work to be done to meet benchmark standards without full consideration of costs involved. 2. Risk Assessment should be based on all relevant , good-quality data. It should include explicit consideration of the combined effect of; The potential impact of non-compliance and the likelihood of non-compliance. Regulators should consult and involve regulated entities and other interested parties in designing their risk methodologies and publish details of those methodologies

The Regulatory Enforcement and Sanctions (RES) Act 2008 Part Three – Statutory October 2008 Alternative Sanctions/Penalties – Macrory Review Fixed Monetary Penalties Discretionary requirements – Variable monetary penalties - Compliance notices - Restoration notices Fixed Monetary Penalties – it is envisaged that such fines will be imposed by a regulator in respect of low-level instances of non-compliance Variable monetary penalties – requiring a person to pay a monetary penalty whose size will be determined by the regulator Compliance notices – requiring a non-compliant business to undertake certain actions to bring themselves back into compliance Restoration notices – requiring a person to undertake certain actions to restore the position, as far as possible, to the way it would have been had regulatory non-compliance not occurred Enforcement undertakings – an agreement offered by a person to a regulator to take specific actions related to what the regulator suspects to be an offence Stop Notices – requiring a person to cease an activity that has given rise, or is likely to give rise, to regulatory non-compliance Clause 60 of the RES Bill is an enabling clause allowing Ministers to give enforcing authorities, not listed as a designated regulator, access to the alternative penalty sanctions. It is unlikely that Fire Authorities will be given access to those alternative sanctions

The Regulatory Enforcement and Sanctions (RES) Act 2008 Stop Notices Enforcement undertakings NOT available to Fire Authorities – Requires Enactment by the Minister

The Regulatory Enforcement and Sanctions (RES) Act 2008 Part Four – Statutory October 2008 Imposes a duty on regulators to secure that they do not impose or maintain unnecessary burdens NOT applicable to Fire Authorities unless enacted by the Minister