Schedule Conditions
Regulation 3(1) and (2)
Part 1 Conditions: approval and designation
Conditions relating to the responsible individual
1 (1) The scheme must provide—
(a) for the appointment by the Secretary of State of an individual to be the responsible individual for the scheme;
(b) that the responsible individual is to be appointed by the Secretary of State on such terms and conditions as the Secretary of State thinks fit;
(c) that the Secretary of State may at any time terminate the responsible individual’s appointment;
(d) that the Secretary of State may not terminate the responsible individual’s appointment because of dissatisfaction with a particular decision of the responsible individual on a complaint under the scheme.
(2) Where the scheme provides for the responsible individual to be employed by the scheme administrator, the scheme must provide that—
(a) the responsible individual is to be employed by the scheme administrator on such terms and conditions as the Secretary of State thinks fit;
(b) the Secretary of State may at any time give the scheme administrator a direction to cease to employ the individual who is the responsible individual as the responsible individual (and may revoke or vary such a direction by a further direction);
(c) the Secretary of State may not give a direction under provision included in the scheme in accordance with paragraph (b) because of dissatisfaction with a particular decision of the responsible individual on a complaint under the scheme.
(3) Where the scheme provides that the scheme administrator is to be a body corporate, the scheme must provide that—
(a) the Secretary of State may delegate to the scheme administrator any function of the Secretary of State under a provision included in the scheme in accordance with sub-paragraph (1) or (2)(a);
(b) a delegation to the scheme administrator may specify—
(i) the extent to which the function is delegated;
(ii) any conditions to which the delegation is subject;
(c) a delegation to the scheme administrator—
(i) may be varied or revoked by the Secretary of State at any time;
(ii) does not prevent the Secretary of State from exercising the function.
(4) The scheme must provide—
(a) that for an individual to be appointed as the responsible individual, the individual—
(i) must be, and be seen as, impartial,
(ii) must have the skills and competencies needed for the role,
(iii) must not be a scheme member, and
(iv) must declare any conflicts of interest;
(b) that, if the responsible individual is aware that they have a conflict of interest in relation to a complaint under the scheme, they must arrange for staff to act on their behalf in relation to the complaint;
(c) for the appointment of staff by the scheme administrator, including a leader or leadership team, to administer the scheme and assist the responsible individual;
(d) that a member of staff designated by the scheme administrator may act on behalf of the responsible individual if the responsible individual is unable to fulfil their duties;
(e) for mechanisms to provide oversight of the responsible individual, including—
(i) a performance review process;
(ii) a process allowing staff to raise concerns about the responsible individual with the Secretary of State.
Condition relating to conflict of interest
2 The scheme must provide that an individual must not investigate or determine a complaint under the scheme if they are aware that they have a conflict of interest in relation to that complaint.
Conditions relating to complaints under the scheme
3 (1) The scheme must include provision about—
(a) the complaints that may be made under the scheme;
(b) the time to be allowed for scheme members to resolve a matter before a complaint in relation to the matter is accepted under the scheme;
(c) who may make a complaint on behalf of a tenant;
(d) the circumstances in which a complaint may be rejected;
(e) the procedure for the handling of complaints under the scheme.
(2) Provision included in the scheme in accordance with sub-paragraph (1)(a) must include provision enabling the making of complaints about non-compliance with any—
(a) codes of practice for residential landlords, or
(b) other documents setting out standards or guidance for residential landlords,
that are issued or approved by the Secretary of State.
(3) The scheme must provide that a complaint may be accepted under the scheme only if—
(a) it is made before the end of a period, specified in the scheme, beginning with the first day on which the complaint could be accepted under the scheme, or
(b) the complaint is made after that period but conditions set out in the scheme are met.
(4) The scheme must provide that an individual determining a complaint under the scheme must determine the complaint by reference to what is, in the individual’s opinion, fair and reasonable in all the circumstances of the case.
Conditions relating to redress
4 The scheme must provide that—
(a) the individual determining a complaint may, in circumstances specified in the scheme, make an order requiring a scheme member to provide redress (“redress order”) of the following types to the complainant—
(i) providing an apology or explanation;
(ii) paying compensation of no more than £25,000;
(iii) taking such other actions in the interests of the complainant as the person determining the complaint may specify;
(b) where it would be practicable for the scheme member to provide evidence of their having provided the redress required by a redress order, the order may require the member to do so;
(c) a redress order must specify the period within which the scheme member concerned must comply with the requirements of the order;
(d) in determining the period mentioned in sub-paragraph (c), the circumstances of the particular case must be taken into account.
Conditions relating to enforcement
5 (1) The scheme must provide that—
(a) where the responsible individual reasonably suspects that a scheme member has failed to comply with the scheme, a redress order or any other decision made under the scheme, the responsible individual may—
(i) take enforcement action in accordance with the scheme;
(ii) make an order requiring the member to take a specified action within a specified period (“an enforcement order”);
(b) before taking enforcement action or making an enforcement order, the responsible individual must consider—
(i) any reasonable excuse for the member’s failure to comply raised by the member, and
(ii) whether the enforcement action or enforcement order is in the public interest.
(2) The scheme must include provision setting out a process for assessing and responding to scheme members’ non-compliance.
Conditions relating to expulsion
6 (1) The scheme must provide that the responsible individual may expel a scheme member from the scheme only—
(a) where the member has—
(i) failed to comply with a redress order;
(ii) failed to comply with an enforcement order;
(iii) failed to pay fees or fines when due under the scheme;
(iv) submitted information or evidence which is false or misleading to the scheme administrator, responsible individual or an individual investigating or determining a complaint;
(v) obstructed or attempted to obstruct the investigation or determination of a complaint under the scheme;
(vi) breached a relevant banning order, and
(b) once—
(i) the responsible individual has informed the member that the member risks being expelled and the reason for this,
(ii) the member has been given an opportunity to make written representations about the decision to expel them,
(iii) the decision to expel the member has been reviewed by an independent person after considering any written representations made,
(iv) the independent person has provided the responsible individual with a report on their review, and
(v) the responsible individual has considered the report and any written representations.
(2) The scheme must provide that—
(a) the responsible individual must notify an expelled scheme member of the reasonably practicable action they must take in order to remedy their wrongdoing;
(b) the responsible individual must revoke an expulsion where the scheme member has taken the reasonably practicable action notified to the member by the responsible individual in accordance with the provision included in the scheme in accordance with paragraph (a);
(c) where it is not possible for the expelled scheme member to take reasonably practicable action to remedy their wrongdoing, the responsible individual may revoke the expulsion where the responsible individual considers it appropriate to do so.
(3) The scheme must provide that a person is prohibited from joining the scheme when the person has been expelled from another landlord redress scheme, except where—
(a) the expulsion has been revoked, or
(b) the scheme which expelled the person has closed and—
(i) the person has taken the reasonably practicable action notified to them by the responsible individual for the scheme which expelled the person,
(ii) the person has taken the reasonably practicable action notified to them by the responsible individual for the scheme, or
(iii) where it is not possible for the person to take reasonably practicable action to remedy their wrongdoing, the responsible individual considers it appropriate to allow them to join the scheme.
(4) In this paragraph, “relevant banning order” has the meaning given in section 83(12) of the Act.
Conditions relating to fees
7 (1) The scheme must—
(a) provide for fees to be payable by scheme members in respect of the compulsory aspects of the scheme (“compulsory fees”);
(b) if there are voluntary aspects of the scheme, provide for fees to be payable by scheme members in respect of the voluntary aspects of the scheme (“voluntary fees”).
(2) The scheme must provide that, where there are no voluntary aspects, the compulsory fees must be calculated so that they are sufficient to meet, but do not exceed, the scheme costs.
(3) The scheme must provide that, where there are voluntary aspects—
(a) the compulsory fees are to consist of—
(i) a first portion, the amount of which must be calculated so that the fees, in so far as they relate to this portion, are sufficient to meet, but do not exceed, the compulsory costs, and
(ii) a second portion, the amount of which must be calculated so that the fees, in so far as they relate to this portion, are sufficient to meet, but do not exceed, such of the voluntary establishment costs as the scheme administrator considers appropriate;
(b) the voluntary fees are to consist of—
(i) a first portion, the amount of which must be calculated so that the fees, in so far as they relate to this portion, are sufficient to meet, but do not exceed, the costs of the voluntary aspects other than the voluntary establishment costs, and
(ii) a second portion, the amount of which must be calculated so that the fees, in so far as they relate to this portion, are sufficient to meet, but do not exceed, such of the voluntary establishment costs as the scheme administrator considers appropriate;
(c) the combined amount of the second portion of the compulsory fees and the second portion of the voluntary fees must be calculated so that the fees, in so far as they relate to those portions, are sufficient to meet, but do not exceed, the voluntary establishment costs;
(d) in relation to the second portion of the compulsory fees and the second portion of the voluntary fees, the scheme administrator may consider that it is appropriate for the amount of one of the two portions to be zero.
(4) The scheme must provide that calculations of fees under provision included in the scheme in accordance with sub-paragraphs (2) and (3) may take one year with another.
(5) The scheme must—
(a) provide that fee amounts must be fair and proportionate;
(b) include provision—
(i) setting out how regularly the fee amounts will be reviewed;
(ii) about exceptional circumstances in which fee amounts might be reviewed in between regular reviews;
(c) provide that any increase in fee amounts must be approved by the Secretary of State.
(6) In this paragraph—
“compulsory costs” means the scheme costs other than the costs of the voluntary aspects;
“voluntary establishment costs” means the costs that are incurred in or associated with, or likely to be incurred in or associated with, the establishment of the voluntary aspects of the scheme.
Conditions relating to co-operation with other persons
8 The scheme must provide—
(a) that the scheme administrator, responsible individual or an individual investigating or determining a complaint may co-operate (including by jointly exercising functions) with—
(i) persons exercising functions under other landlord redress schemes,
(ii) persons exercising functions in relation to other kinds of complaint,
(iii) persons exercising enforcement or regulatory functions in relation to the private rented sector, and
(iv) the Secretary of State;
(b) that an individual investigating or determining a complaint must consider co-operating with the persons mentioned in sub-paragraph (a).
Conditions relating to disclosure of information
9 (1) The scheme must provide that the scheme administrator, the responsible individual or an individual investigating or determining a complaint may disclose information held in connection with functions under the scheme to—
(a) any of the following persons, for the purposes specified in sub-paragraph (2)—
(i) a person exercising functions under another landlord redress scheme;
(ii) a person exercising functions in relation to another kind of complaint;
(iii) a person exercising enforcement or regulatory functions in relation to the private rented sector;
(b) a person exercising social services functions where, during an investigation of a complaint under the scheme, there is reasonable cause to believe that a child or vulnerable adult is at risk of neglect, abuse or physical, mental or emotional harm;
(c) a constable, where necessary for a purpose—
(i) relating to the prevention, detection, investigation or prosecution of an offence,
(ii) of the police relating to public health or public safety, or
(iii) relating to national security;
(d) the database operator for the purpose of—
(i) enabling database entries to be made and kept up-to-date;
(ii) checking the accuracy of database entries.
(2) The purposes specified in this paragraph are—
(a) enabling the person to assist with the exercise of functions under the scheme;
(b) assisting with—
(i) in the case of a person exercising functions under another landlord redress scheme, the exercise of functions under that scheme,
(ii) in the case of a person exercising functions in relation to another kind of complaint, the exercise of those functions, or
(iii) in the case of a person exercising enforcement or regulatory functions in relation to the private rented sector, the exercise of those functions;
(c) enabling co-operation (including joint exercise of functions) authorised by provision included in the scheme in accordance with paragraph 8(a).
(3) The scheme must provide that the scheme administrator, the responsible individual or an individual investigating or determining a complaint may publish the following information about scheme members who have been expelled—
(a) name;
(b) registration number under the scheme;
(c) unique identifier under section 84 of the Act;
(d) addresses of properties subject to residential tenancies under which the member is the residential landlord.
(4) In this paragraph—
“child” means a person under the age of 16;
“database operator” has the meaning given in section 76(1) of the Act;
“social services functions” has the meaning given in section 1A of the Local Authority Social Services Act 1970;
“vulnerable adult” means a person aged 16 or over whose ability to protect themselves from violence, abuse or neglect is significantly impaired through physical or mental disability or illness, through old age or otherwise.
Conditions relating to reporting
10 (1) The scheme must provide that—
(a) the scheme administrator must annually prepare and publish the documents specified in sub-paragraph (2);
(b) where the scheme administrator is not the Secretary of State, the scheme administrator—
(i) must send the documents specified in sub-paragraph (2) to the Secretary of State before publishing them, and
(ii) must not publish those documents until they have been approved by the Secretary of State;
(c) the scheme administrator must disclose to the Secretary of State such information as the Secretary of State may request for the purpose of monitoring the performance of the scheme.
(2) The documents are—
(a) a document describing—
(i) the scheme administrator’s objectives for the next year,
(ii) how they plan to achieve these objectives, and
(iii) a list of key performance indicators for the scheme;
(b) a report including a review of the scheme’s performance against the key performance indicators included in the document specified in paragraph (a) which was published the previous year;
(c) accounts prepared in such manner as is determined by the Secretary of State.
Conditions relating to review of the scheme
11 (1) The scheme must provide that—
(a) the scheme administrator must conduct a review of the provisions of the scheme to determine whether they meet the needs of the persons specified in sub-paragraph (2)—
(i) within the period of five years beginning with the date of approval or designation of the scheme, and
(ii) within each period of five years beginning with the day after the day on which the last review of the scheme was completed;
(b) a review must include consultation with—
(i) scheme members, and
(ii) tenants under residential tenancies under which the landlord is a scheme member;
(c) where the scheme administrator is not the Secretary of State, the scheme administrator must, after conducting a review, send to the Secretary of State a report setting out the findings of the review, including—
(i) the amendments to the scheme that appear to the scheme administrator to be appropriate, or
(ii) a statement that the scheme administrator considers that the scheme should not be amended;
(d) in the case of a scheme which has been approved under section 64(2)(b)(i) of the Act, where the scheme administrator has sent a report to the Secretary of State which includes amendments, the scheme administrator must make an application for amendment of the scheme in accordance with regulation 4(2);
(e) the scheme administrator must provide any information requested by the Secretary of State in relation to the review.
(2) The persons are—
(a) residential tenants;
(b) residential landlords;
(c) such other persons as the Secretary of State may direct.
Condition relating to complaints about the operation of the scheme
12 The scheme must include provision enabling the making of complaints, by scheme members and tenants, about the operation of the scheme.
Conditions relating to transfer of administration
13 The scheme must provide that—
(a) the administration of the scheme may be transferred to a different administrator only by direction of the Secretary of State;
(b) the Secretary of State may direct that the administration of the scheme be transferred to a different administrator where the Secretary of State considers that it is appropriate to do so.
Conditions relating to closure events
14 (1) The scheme must include provision setting out a process for facilitating the orderly transfer of scheme members to another landlord redress scheme in the case of a closure event.
(2) The scheme must provide that the Secretary of State may direct the scheme administrator to take such actions as the Secretary of State considers are appropriate in connection with a closure event.
(3) The scheme must provide that the scheme administrator, the responsible individual and an individual investigating or determining a complaint may disclose information held in connection with the scheme to the Secretary of State for purposes connected with a closure event.
Condition relating to leaving the scheme
15 The scheme must provide that, where—
(a) a scheme member intends to leave the scheme and join another landlord redress scheme, including in connection with a closure event, and
(b) there are three or more landlord redress schemes operating (including the scheme to which the member currently belongs),
the member must give a notice in writing to the scheme administrator stating which scheme the member is intending to join.
Conditions relating to other functions
16 The scheme must provide that the responsible individual may do anything that the responsible individual considers appropriate for the purpose of—
(a) enabling the investigation and determination of complaints under the scheme;
(b) supporting tenants in making complaints under the scheme;
(c) facilitating the resolution of complaints of a sort which could be made under the scheme;
(d) contributing to the development of policy in relation to matters about which a complaint could be made under the scheme.
Conditions relating to guidance for scheme administrator and local housing authority
17 The scheme must provide that—
(a) the scheme administrator, and
(b) the responsible individual,
must have regard to any guidance issued or approved under section 70(1) of the Act (guidance on cooperation between local housing authorities and persons exercising functions under landlord redress schemes).
Conditions relating to access to the scheme by post or telephone
18 The scheme must provide that, where necessary in order to access the service—
(a) a tenant may—
(i) submit a complaint and other documents relating to the scheme, and
(ii) receive documents relating to the scheme from the scheme administrator,
by post;
(b) a residential landlord may apply to become a member of the scheme by post or by telephone;
(c) a scheme member may—
(i) submit documents relating to the scheme, and
(ii) receive documents relating to the scheme from the scheme administrator,
by post;
(d) a tenant or a scheme member may submit a complaint about the operation of the scheme by post or by telephone.
Condition relating to the form of notices, notifications, directions, orders and delegations
19 The scheme must provide that a notice, notification, direction, order, delegation, variation of a delegation or revocation of a delegation given in accordance with provision included in the scheme in accordance with this Schedule must be given in writing.
Part 2 Conditions: approval
Conditions relating to closure of the scheme by the scheme administrator
20 (1) The scheme must provide that—
(a) the scheme administrator may close the scheme where the scheme administrator considers it appropriate to do so;
(b) the scheme administrator must, before closing the scheme, give the Secretary of State a notice stating that the scheme administrator intends to close the scheme;
(c) the Secretary of State must, within the period of 25 working days beginning with the date on which the Secretary of State received a notice given under the provision included in the scheme in accordance with paragraph (b), direct the scheme administrator as to the date on which the scheme is to be closed;
(d) the date on which the scheme is to be closed under the direction of the Secretary of State under provision included in the scheme in accordance with paragraph (c) must be within the period of 18 months beginning with the date of the direction;
(e) where the Secretary of State makes a direction under provision included in the scheme in accordance with paragraph (c), the scheme administrator must give to every scheme member, within such period as the Secretary of State may direct, a notice stating—
(i) that the scheme is to be closed, and
(ii) the date on which the scheme is to be closed;
(f) the scheme administrator must, before the scheme is closed, provide to the scheme administrator of another landlord redress scheme such information relating to—
(i) scheme members, and
(ii) complaints made under the scheme (including complaints which have been closed),
as would enable that scheme administrator to continue the operation of the compulsory aspects of the scheme;
(g) where, under paragraph (f), there is more than one scheme administrator to whom the information might be provided, the Secretary of State may direct the scheme administrator as to which of those scheme administrators to provide the information to.
(2) The scheme must provide that where the administration of the scheme has been transferred to the Secretary of State, or to a person acting on behalf of the Secretary of State, under provision included in the scheme in accordance with paragraph 13, the scheme administrator may not exercise the power conferred by provision included in the scheme in accordance with sub-paragraph (1)(a).
(3) The scheme must provide that, where the scheme administrator has given the Secretary of State a notice under provision included in the scheme in accordance with sub-paragraph (1)(b) stating that the scheme administrator intends to close the scheme, the Secretary of State may, at any time before the scheme closes, transfer the administration of the scheme to a different administrator under provision included in the scheme in accordance with paragraph 13.
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