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Amending the licence when there's a change in service provider

regulation changes have your sayComment below and have your say on the proposal to change the process for amending the licence when there is a change in service provider.

Due to an increasing number of the providers transferring businesses and owning multiple services across regions, the Ministry would like greater clarity of its powers to “review the licence” when there is a change in service provider. 

When reviewing the licence, it would like to include the assessments used for granting a probationary licence and/ or for granting a full licence.

It also wants to require applications for licence amendments to be made before a different provider takes over the operation of the service.

Currently “service providers often apply for a licence amendment after a new service provider has taken over the operation of the service. This means that the new service provider can operate with little scrutiny until the licence is reviewed (Impact Summary, p. 16)

Why?  Current regulations on this are open to interpretation which can lead to service providers legally challenging the Ministry. 

Also, at present service providers can use the licence amendment process to effectively start a new service, instead of applying for a new licence and going through the more rigorous process of a new licence application.

  • “There have been a few examples of service providers using the licence amendment process in a way that could pose risks:
  • Services that wanted to expand rapidly into other regions and had previously had their applications for a new licence declined.
  • Services under the same governance organisation that sought to transfer licences between themselves to avoid financial scrutiny.
  • People or bodies purchasing a business with little understanding and preparedness for the full responsibilities.” (Impact Summary, p. 7)

 

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