Consumers, Estate Agents and Redress Act 2007

49Approval of redress schemes

(1)In deciding whether to approve a redress scheme, a regulator must have regard to—

(a)the provisions of the scheme;

(b)the manner in which the scheme will be operated (so far as that can be judged from the facts known to the regulator);

(c)the interests of relevant consumers (in relation to the regulator’s regulated providers);

(d)such principles as—

(i)in the opinion of the regulator constitute generally accepted principles of best practice in relation to schemes for providing redress to consumers, and

(ii)it is reasonable to regard as applicable to the scheme.

(2)In considering the interests of relevant consumers under subsection (1)(c), the regulator must in particular have regard to the number of other redress schemes applying to its regulated providers which are (or are likely to become) qualifying redress schemes.

(3)A regulator must not approve a redress scheme unless—

(a)membership of the scheme is open to all the regulator’s regulated providers, and those regulated providers may not be expelled from membership of the scheme,

(b)if, at the time the approval is given, any of the regulator’s regulated providers are required under section 47 to be a member of a redress scheme (or would be so required but for the fact that an order which has been made under that section is not yet in force), the scheme covers all the consumer complaints to which the requirement applies,

(c)the independent person may require regulated providers to provide complainants with the types of redress listed in subsection (6) (whether or not other types of redress are available), and

(d)the regulator considers that the scheme makes satisfactory provision about the matters listed in subsection (7).

(4)Subsection (3)(a) does not prevent the Gas and Electricity Markets Authority approving—

(a)a scheme which is open to all regulated gas providers, but not regulated electricity providers,

(b)a scheme which is open to all regulated electricity providers, but not regulated gas providers,

and, in the case of such a scheme, subsection (3)(b) applies as if the reference to the regulator’s regulated providers were to the regulated gas providers or, as the case may be, regulated electricity providers.

(5)For this purpose—

• “regulated electricity provider” means a person holding a licence under section 6(1)(c) or (d) of the Electricity Act 1989 (c. 29);

• “regulated gas provider” means a person holding a licence under section 7(2) or 7A(1) of the Gas Act 1986 (c. 44).

(6)The types of redress mentioned in subsection (3)(c) are—

(a)providing an apology or explanation,

(b)paying compensation, and

(c)taking such other action in the interests of the complainant as the independent person may specify.

(7)The matters mentioned in subsection (3)(d) are—

(a)the matters about which complaints may be made (which may include non-compliance with a code of practice or other document);

(b)the independent person’s duties and powers in relation to the investigation and determination of complaints (which may include power to decide not to investigate or determine a complaint);

(c)the enforcement of any requirement to provide redress imposed on a regulated provider in accordance with the scheme;

(d)the provision of information by the independent person to the regulator and to persons within subsection (8);

(e)the provision of information by the independent person—

(i)to the Office of Fair Trading, for the purposes of any public consumer advice scheme supported by it, and

(ii)to persons who operate a public consumer advice scheme supported by the Office of Fair Trading, for the purposes of that scheme;

(f)the acceptance and handling of complaints transferred from redress schemes which have their approval withdrawn under section 51.

(8)The persons within this subsection are—

(a)any other body having regulatory functions in relation to the regulated providers to which the scheme applies;

(b)persons exercising functions under other redress schemes which apply to the regulator’s regulated providers;

(c)the Council;

(d)the Secretary of State.