The Provision of Services Regulations 2009 came into force on 28 December 2009. They implement Directive 2006/123/EC on services in the internal market, which applies throughout the EU and EEA. The Regulations largely codify existing EU/UK law.

A. Service Providers

Which services are covered?

• All services normally provided for remuneration to consumers and/or businesses, with the exception of employment contracts – eg. accountancy, advertising, equipment rental, estate agency, builders, catering, travel agents, schools, care homes, plumbers.
  
• There are exclusions, including for services already covered by other EU Directives – eg. financial, audiovisual, state social services, ISPs, transport, healthcare, temporary work agencies, and utilities. Charities which have a trading subsidiary may be caught by the Regulations, if that subsidiary provides a non-excluded service.

What duties are imposed on service providers?

• to provide specified information to the recipient of a service in good time prior to the contract or provision of the service, including the name of the business, legal status, geographical address, details of any registration or authorisation scheme to which the provider is subject, any professional/membership dispute resolution procedure to which the provider is subject, price and insurance cover. Note also other information provision requirements in eg.the Companies (Trading Disclosures) Regulations 2008 and Consumer Protection from Unfair Trading Regulations 2008;
  
• to respond to complaints from recipients as quickly as possible, and (unless vexatious) make best efforts to find a satisfactory solution to such complaints;
  
• not to discriminate on grounds of nationality or place of residence, in marketing or contractual conditions, unless justified by objective criteria (eg. additional costs due to distance involved, additional risks due to lack of IP rights in a particular territory).

Enforcement

• The Regulations create no new criminal offences, and do not give consumers or other businesses direct rights of redress. The OFT and Local Authority Trading Standards may seek to enforce the Regulations by applying to the Court under Part 8 of the Enterprise Act, where the collective interests of the consumers are being harmed.

B. Competent Authorities

Who are “competent authorities”?

• All bodies or authorities having supervisory or regulatory functions in the United Kingdom in relation to service activities; including administrative authorities, professional bodies and bodies regulating access to or exercise of such activities. These are not listed, but would include eg. government departments and local authorities, OFT, Information Commissioner’s Office, regulatory bodies for accountants, insolvency practitioners, solicitors and barristers, British Waterways Board, Companies House, Gas Safe Register.

What duties are imposed on competent authorities?

• Any authorisation scheme must be non-discriminatory (including as to nationality or location), justified by an overriding reason relating to the public interest, and impose only the least restrictive measure necessary to attain an objective.
  
• Authorisation requirements and procedures must be made public in advance, must not be dissuasive, and applications must be processed promptly. Access to the UK must not be made dependent on participation in a financial guarantee or taking out insurance from a person established in the UK if there is already EEA cover.
  
• Any requirements imposed on service providers must respect the principles of non-discrimination, necessity (i.e. justified on grounds of public policy, public security, public health or protection of environment) and proportionality (including as to fees).
  
• Multi-service activities cannot be prohibited, save that requirements may be imposed on regulated professions to the extent necessary to govern ethics, conduct, impartiality and independence. Rules must ensure that conflicts of interest are avoided, and that rules for different activities are compatible.
  
• In the case of service providers carrying on a regulated profession, the authority must ensure compliance with rules for commercial communications relating to the independence, dignity and integrity of that profession, and professional secrecy.
  
• Authorities must provide to BIS in electronic form details of any authorisation scheme and its requirements, and put in place procedures for cooperation with authorities in other EEA states.

C. UK Government

• All EEA states must set up a point of single contact where businesses will be able to look up information about operating in that state and apply online for any authorisation needed – www.businesslink.gov.uk managed by HMRC for the UK and www.eu-go.uk for links to other country portals. For consumers the Trading Standards Institute is also creating an information portal, linked to the European Consumer Centre network (www.ukecc.net).

This is a summary only. For more information please contact Rupert Earle at r.earle@bwbllp.com or Lisa Marie Roca at lm.roca@bwbllp.com.

Alternatively,please contact a member of the team: 

John Trotter	j.trotter@bwbllp.com	020 7551 7707
Dinah Tuck	d.tuck@bwbllp.com	020 7551 7749
Rupert Earle	r.earle@bwbllp.com	020 7551 7609
Selman Ansari	s.ansari@bwbllp.com	020 7551 7684
Melanie Carter	m.carter@bwbllp.com	020 7551 7610
Martin Kramer	m.kramer@bwbllp.com	020 7551 7611
Edward Pitt	e.pitt@bwbllp.com	020 7551 7632
Elizabeth Petch	e.petch@bwbllp.com	020 7551 7730
Jean Tsang	j.tsang@bwbllp.com	020 7551 7758
Lisa Marie Roca	lm.roca@bwbllp.com	020 7551 7608

Disclaimer
The information contained with this e-bulletin is necessarily of a general nature. Specific advice should always be sought for specific situations.