Part 3: Regulatory Enforcement and Sanctions Act Schedule 3: Primary Authority Scheme: New Schedule 4A to RESA 2008
This schedule sets out the procedure for references to the Secretary of State. It replaces schedule 4 to the Regulatory Enforcement and Sanctions Act 2008.
	Part 1 of RESA is concerned with enforcement action by the primary authority. It enables a regulated person, or a member of a regulated group, to make a referral to the Secretary of State where the primary authority has notified it of proposed enforcement action. This part is new. Its purpose is to ensure that the regulated person, or member of a regulated group, has the opportunity to apply for a reference where enforcement action is proposed by the primary authority, rather than by a different regulator.
	Part 2 of RESA sets out the procedure for references to the Secretary of State where enforcement action has been notified to the primary authority by an enforcing authority. If the primary authority directs the enforcing authority not to take the enforcement action, the enforcing authority may refer the proposed action to the Secretary of State (paragraph 2). If the primary authority does not issue a direction to the enforcing authority, the regulated person or member of the regulated group may refer the matter to the Secretary of State (paragraph 3).
	Part 2 of RESA also enables a primary authority to refer proposed enforcement action by an enforcing authority to the Secretary of State instead issuing a direction under section 25C(4) (paragraph 1).
	Consent of the Secretary of State to the reference is necessary in each situation. The Secretary of State:
must direct against the action, if satisfied that the proposed enforcement action is inconsistent with advice or guidance previously given by the primary authority, and that the advice or guidance was correct and properly given;
otherwise, consent to the action.
	If the Secretary of State directs against the action, the Secretary of State may direct the enforcing authority to take some other enforcement action.
	Part 3 of RESA sets out general provisions in relation to referrals. Paragraph 5 sets out timings for the making of referrals and for the Secretary of State to determine referrals. Paragraph 6 provides that the Secretary of State must consult with any relevant regulator where appropriate, and may consult with other persons. Paragraph 7 enables the Secretary of State to require information to be provided by any of the primary authority, the enforcing authority or the regulated person/member of the regulated group. Paragraph 8 makes provision as to costs where the regulated person/member of regulated group applies for make a reference. Paragraph 9 allows the Secretary of State to make further provision as to procedures to be followed.