Consumers, Estate Agents and Redress Bill [HL]

moved Amendment No. 69: 69: Clause 48 , page 27, line 32, leave out paragraph (d) and insert— ““(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.”” The noble Lord said: My Lords, in speaking to Amendment No. 69 I shall also speak to Amendment No. 92. The amendments relate to Clause 48 under the Consumer Voice provisions and Schedule 6 concerning the redress provisions for estate agents. The amendments outline the matters that a regulator must take into account prior to approving a redress scheme for operation and the key features of any qualifying redress scheme. As currently drafted, the clauses place a requirement on regulators to have regard to generally accepted principles of good practice. In Committee, Members asked that the word ““good”” be replaced with ““best”” in this instance. I was grateful for the opportunity to have a full and frank debate onthe issue. I said then that we were in agreement on the fundamental issue, which is to ensure that any approved redress scheme conforms to generally accepted criteria, such as the guidelines provided by the British and Irish Ombudsman Association,which cover issues such as independence, fairness, effectiveness and public accountability. Our aim is to achieve the best redress provisions for consumers without placing too onerous a burdenon a regulator in determining best practice. After considering the issue carefully, we feel that simply substituting ““best”” for ““good”” would force a regulator to go through an onerous process to establish what exactly the best practice was, and possibly expose the regulator to challenge on this matter. Approval of redress schemes falls to a regulator in this instance, and the determination of what constitutes generally accepted best practice is a vital part of that process. Having considered the matter further, we have tabled these amendments, which will require regulators to have regard to such principles as, in their opinion, constitute generally accepted best practice when approving a redress scheme. It will be the responsibility of each regulator to reach that opinion reasonably to avoid legal challenge. The amendment to Schedule 6 also requires the OFT to have regard to, "““such principles as it is reasonable to regard as applicable to the scheme””." That will ensure that, in considering best practice, the OFT will consider what is best for the estate agent market, as opposed to other markets where redress schemes operate. It brings the wording of the estate agents redress provisions into line with the Consumer Voice provisions. The amendments strike the right balance. I beg to move. On Question, amendment agreed to.