SIA licensing Exemption Framework
Written on 5:48 PM by CommuniKation
Introduction
The Private Security Industry Act 20011 provides for the licensing, by the Security Industry
Authority (SIA), of a number of activities in the private security industry.
The Act also provides for the establishment of the SIA, as a non-departmental public body,
to be the regulating authority.
As of 1 November 2007, our remit also extends to Scotland.
Licensable Activities
The PSIA provides for the regulation of a number of sectors in the private security industry.
It provides a framework of controls, including the licensing of all individuals engaging in
licensable activity in five industry sectors: vehicle immobilisers (wheel-clampers), security
guards (incorporating door supervisors, CCTV, CVIT, close protection), key holders,
security consultants and private investigators.
Since the passage of the Act, the SIA has had plans and criteria regulation and the issue of
licences approved by the Home Office Minister. More detailed information and criteria are
available on the SIA website (www.the-sia.org.uk) about:
• the form of the licensing scheme;
• the cost of a licence;
• the training requirements, including criteria for trainers;
• the criteria for granting, refusing, suspending or revoking licences;
• the application process; and
• the dates on which different industry sectors will be designated for regulation under
the Act.
Section 3(2) of the Act defines a person as being licensable if employed or supplied on
contract, to carry out front line or non-front line licensable activities. All contract security
activities defined are licensable by the SIA and in-house security guard activities on
licensed premises2 (defined by the act as door supervisors) are also licensable by the SIA.
The SIA publishes the criteria it uses to decide whether to grant a licence to applicants.
Applicants must pass an identity check, a criminal record check and undergo approved
training if they will be working in a 'front-line' activity, and must satisfy other fit and proper
person criteria such as demonstrating the right to live and work in the UK and a mental
health declaration.
1
Also referred to as the Act or PSIA.
2
Defined by The Act, Schedule 2, part 2, 8 (2) as premises licensed for the sale of alcohol
or provision of regulated entertainment
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Paragraph 2(4) to (6) of Schedule 2 excludes certain persons from the scope of security3
guarding activities and as such do not need to apply for an exemption;
• people who only control access to a premises to the extent of securing that persons
have paid for admission or have invitations or passes to enter;
• people who do not perform those activities otherwise than incidentally to maintain
order or discipline amongst a group they are working with; or
• those persons who do not wholly or mainly perform those activities and who
incidentally respond to a sudden or unexpected occurrence,
• volunteers, unless they receive payment in kind or reward are not licensable. The
principles of what constitutes payment in kind or reward are in line with those set
out by the Inland Revenue. In short the IR identifies a payment in kind or benefit as
whether it is subject to either PAYE (Tax) or National Insurance Contributions. The
list provided on the IR website (link below) is comprehensive, but not prescriptive,
and if in doubt individuals or organisations should consult the SIA.
http://www.inlandrevenue.gov.uk/employers/ebik/ebik2/table-of-contents.htm
The Government's Better Regulation Agenda
The SIA is committed to the principles of the Government's Better Regulation agenda and
therefore does not intend the scope of the PSIA to include elements of the private security
industry where suitable alternative arrangements already apply thereby securing the safety
of the public. The SIA does not wish to see an exemption route that is burdensome, costly
or confusing for businesses.
Exemption from Licensable Activities
Section 4(1) of the Act provides for the Secretary of State (SoS) to make regulations to
prescribe circumstances in which persons will be exempt from the requirement to have a
licence to undertake licensable conduct. The SoS can only do this where the SoS is
satisfied that there are circumstances in which activities of licensable conduct are
undertaken by people to whom "suitable alternative arrangements" will apply and the SoS
is satisfied that "as a consequence" it is unnecessary for people undertaking those activities
to be required to be licensed.
The SoS and Ministers have approved the use of the SIA Exemption Strategy as a
framework for defining such 'prescribed circumstances'. The SIA will use this framework
and the following tests in its consideration of all exemption requests and recommendations
to the Home Office Minister responsible.
The phrase "suitable alternative arrangements" in section 4 is defined in section 4(3) as
arrangements that the SoS or, as the case may be, the SIA are satisfied are "equivalent, for
all practical purposes so far as the protection of the public is concerned, to those applying
to persons applying for and granted licences."
There are two key points arising from this test. Firstly, that the test is on equivalence, and
not on whether the arrangements are identical. Secondly, the equivalence has to be judged
by reference to one particular consideration – 'the protection of the public'.
3
The Act describes the activities of 'manned' guarding. In order to better reflect the make
up of the sector, the SIA uses the term 'security guard' or 'security guarding' to the same
effect.
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The test of equivalence involves an element of comparison. In discussions about a
framework for exemptions the Minister and Home Office have confirmed they consider that
the alternative arrangements have to be compared with the arrangements that are in use by
the SIA for those applying for licences. That requires an examination of the arrangements
applicable to those who are the nearest comparators to the group in question.
Exemption Tests
Section 4 of the Act provides a clear test and threshold that suitable alternative
arrangements are or will be in place. Applications for exemptions must be considered in
light of this and the Government's Better Regulation agenda. Under current licensing
criteria, Home Office Ministers have approved that the following or equivalent should be in
place:
a) trained to a nationally accredited standard and that this training should cover
conflict management for security guards;
b) subject to suitable vetting; and
c) suitably regulated and monitored.
Exemption Request Process
An exemption request proposal should be made via a Government department or existing
regulatory body or body that would retain oversight of the exemption prescribed
circumstances, to the SIA. The SIA will not accept exemption requests from individuals, or
from corporate entities with no regulatory functions.
The proposal should address each of the following exemption tests / requirements (Annex
A).
The SIA will discuss the exemption with the body requesting the exemption and compare it
with the criteria that are already in use and submit both the application for exemption, and
their recommendation to Home Office Ministers.
Home Office Ministers will consider the exemption request proposal and the SIA
recommendation, acknowledging their own discretion to make determinations within the
constraints of the legislation, and determine the granting of an exemption (including
prescribed circumstances) or not.
For Further Advice
For further advice or to discuss / present a submission please contact:
Assistant Director Government & Legal
Security Industry Authority
PO Box 49768
90 High Holborn
London
WCIV 6WY
Tel. 020 7025 4100
Fax. 020 7025 4101
Email. exemptions@the-sia.org.uk
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Is the Activity Licensable?
Define the activity, its licensable status and its comparable SIA sector (see above).
What are the Suitable Alternative Arrangements?
Define all alternative arrangements, which at a minimum must include the areas detailed
above.
Small Firms Impact Test
Assess and define whether the proposals outlined in the exemption request have any
significant effect on small businesses.
Competition Assessment
Assess and define how the proposals outlined in the exemption request will apply to a
range of businesses and individuals, assisting them in their activities, and the effect, if any,
on market share or entry to the market.
Monitoring, Compliance and Sanctions
Define how the monitoring, compliance and sanctions activities proposed within the
exemption request are in place. Define how the Government department or existing
regulatory body or body that retains oversight will report regularly to Ministers and SIA on
how the exemption is operating.
Implementation and Delivery Plan
Define how arrangements will be put in place to ensure that the exemption request
proposal will be delivered and well communicated to those it affects.
