Consultation response
Test House framework development
A summary of our response to the Test House Framework development consultation. Includes consultation questions, responses, and our position on these questions.
Approvals
Consultation proposal:
As part of the framework the Commission proposes that any person, or organisation that will have influence over the test house, should be notified to the Commission before the control is obtained. In addition, we propose that any new persons/organisations will have to be approved by the Commission to determine their suitability.
Consultation questions
To what extent do you agree with our proposals that:
- Q7. Those with influence over a test house require individual or organisational approval?
- Q8. Approval must be obtained before an individual or organisation gains control?
A significant majority of respondents agreed or strongly agreed with the proposal that those with influence require approval. It was commented that this is integral to us ensuring the independence of test houses.
The majority of respondents agreed or strongly agreed with the proposal that approval should be gained in advance. There was concern that this would not always be possible and that this is setting the standard above that which is currently placed upon operators.
It has been our experience that negotiations to change control take place in advance of any agreements being signed, so notification and approval in advance is practical and something that a large number of operators are already able to do.
Our position
Those individuals or organisations with influence over a test house require approval. Where new entities have influence, approval should be sort prior to influence being obtained. This will ensure that there are no conflicts of interest with incoming controllers. Changes to shareholding or Board Members normally require a period of negotiation; this should provide test houses with sufficient time to ensure that the Commission is notified of proposed changes and the date they are intended to come into effect. Seeking approval in advance also allows for any concerns to be discussed with the test house before any changes take place.
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Last updated: 26 July 2023
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