Insights ¦ 20241017-Standards-consultation-response-v3

Key Take Aways

• The ECB received widespread stakeholder engagement through 46 formal responses, supplemented by workshops and interviews across enforcement, debt advice, and local authorities, demonstrating high sector involvement.
• Stakeholders broadly support the new enforcement standards, with positive feedback on the articulated professional values and standards.
• There is a consistent desire for clearer frameworks around enforcement agent conduct, including monitoring, sanctions, and clarity on legal liability, especially in relation to self-employed agents.
• The standards emphasise treating enforcement subjects fairly, with particular focus on communication, health and safety, and vulnerability, reflecting sector-wide values of respect and transparency.
• The ECB plans to retain the core content of all original standards whilst refining language and incorporating stakeholder suggestions, indicating a collaborative approach.
• The enforcement process standards are set to overhaul existing notification and engagement requirements, with a move towards more user-friendly, accessible communication, including digital options.
• The training standard garners strong industry support, with calls for minimum training levels, regular refresher courses, and sector-specific modules such as vulnerability and safeguarding.
• The retention period for body-worn video footage is generally supported at 90 days; however, some responses advocate for shorter durations such as 60 days, citing GDPR considerations and complaint data.
• Health and safety standards are well received, with suggestions to formalise safety policies, mandate the use of BWV, and align with recognised health and safety legislation like ISO 45001.
• The proposal for a sanctions regime is supported but raised concerns about the implementation, transparency, and potential business impact, prompting a commitment to a fair, proportionate process with appeal rights.
• The ECB will develop a detailed oversight and sanctions process in future consultations, positioning these as central to ensuring compliance and accountability.
• In-house enforcement teams at local authorities are set to be eligible for accreditation, subject to specific conditions, recognising their role within a broader sector reform.

Key Statistics

• The consultation received 46 formal responses from enforcement firms, local authorities, creditors, advice organisations, ombudsman, and individuals.
• 13 respondents commented on the draft professional values, all supporting them overall; some raised concerns on monitoring and conflicts.
• 90-day retention period for body-worn video was supported by the majority, with many responses suggesting 60 days as an alternative.
• Responses to the complaints standard indicated a preference for extending the formal response period from 10 to 20 working days.
• Training support was widespread; respondents asked for minimum training standards and specific sector-relevant modules.
• The proposed levy structure and fee certainty were key concerns, with some stakeholders favouring fixed or banded approaches.
• Support for the accreditation of enforcement firms was unanimous; however, some in-house teams at local authorities questioned the necessity of ECB oversight in their context.
• Feedback on the operational oversight model emphasised transparency, fairness, and clarity, with calls for more guidance on monitoring approaches.
• In the sanctions discussion, a recognition that publication should be cautious and incremental; enforcement firms expressed concerns over reputational impact.
• Many responses supported consistency and risk-based approaches in oversight and emphasised the importance of proportionality.
• Stakeholder input included suggestions for Garda-like standardisation and more proactive engagement around enforcement best practices.

Key Discussion Points

• The role of professional values in fostering fair enforcement behaviour and how these will be monitored and enforced.
• The need for clearer guidance on notification of enforcement actions, including digital interactions and external links.
• The importance of ergonomic, accessible enforcement processes that address complaints efficiently within reasonable timeframes.
• Balancing robust enforcement standards with sector-level practicalities, especially concerning training, safety, and technological capabilities.
• The legal interpretation and liability of enforcement firms versus individual agents, notably referencing case law.
• How standards should evolve to better reflect the legal and regulatory context, including re-entry rights and control of goods.
• The approach to proportionate oversight, including desktop reviews and visit-based assessments, aligned with sector risk.
• The design of a fair, transparent sanctions regime that respects procedural rights and supports continuous improvement.
• The consideration of in-house local authority enforcement teams within the accreditation and oversight framework.
• The sector’s capacity to adapt to new standards amid commercial and operational constraints.
• How to create consistency across the enforcement market, minimising regulatory gaps and elevating sector professionalism.
• The importance of stakeholder collaboration to refine standards related to vulnerability, ability to pay, and sector-specific challenges.

Document Description

This article presents an in-depth review of the ECB’s consultation response regarding new enforcement standards and accreditation frameworks within the enforcement industry. It covers key stakeholder feedback on draft standards covering values, enforcement processes, communication, training, health and safety, governance, complaints, and sanctions. The document outlines the ECB’s response to sector input, amendments to standards, and plans for future consultation on oversight and sanctions. Designed for senior managers in financial services, it encapsulates the sector’s readiness to uphold fair enforcement practices, ensure accountability, and foster sector-wide improvement through strengthened standards and oversight mechanisms.