Striking up a partnership: the Regulatory Enforcement and Sanctions Act 2008 - a summary for businesses

Now that the main provisions of the Regulatory Enforcement and Sanctions Act are in force, and with part 2 scheduled to come into force on 6 April 2009, businesses should:

• Carefully consider whether to enter into a primary authority partnership, and if so, which local authority to select as a primary authority. A business may have already developed a sound working relationship with a particular local authority which it would be sensible to continue
• Review the scope of the services provided by a local authority before deciding on a primary authority partner. An examination of the resources needed by a local authority to deliver the advice and guidance required will be integral to selecting the right partner
• Be prepared to work closely with the local authority that is its primary authority. Local authorities that have a primary authority partnership with a business will be expected to work closely with that business, and with other local authorities within whose boundaries a business operates, to ensure it complies with the relevant regulations
• Remember that if an agreement cannot be reached with a local authority, a request can be made to the Local Better Regulation Office (LBRO) to nominate a local authority to act as a primary authority. The LBRO will nominate an authority that it considers suitable having taken into account the location of the business and where it carries out its activities; the resources and capacity of the local authority; and any relevant specialisms of the local authority. For example a local authority may have developed expertise in relation to a particular area of trade such as imported food or recreational craft. The LBRO will consult with both the authority and the business prior to making the nomination
• Take this opportunity to conduct a review of its operations to ensure compliance with all relevant legislation. It will reduce exposure to the new administrative sanctions dealing with regulatory non-compliance
• Think of creative ways of addressing regulatory non-compliance if it finds itself falling foul of the law once the new sentencing powers are available. Until now, there has been no legislative basis to facilitate or encourage this kind of creative measure. Agreeing an appropriate course of action can remove the stigma and adverse publicity of a criminal record that might otherwise result.