1. The Regulatory Enforcement and Sanctions (RES) Act 2008

2. 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

3. 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

4. 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

5. 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!!!!!!

6. 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

7. 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

8. 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

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

10. 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