Part 6 – Leasehold and estate management: Redress schemes Section 103: Approval and designation of redress schemes
Section 103(1) makes clear that this Section applies when the Secretary of State makes regulations to require a person (a landlord or estate management company) to be a member of a redress scheme under Section 100(1).
	Subsection (2) requires the Secretary of State to make regulations setting out the conditions that a scheme must meet before being approved or designated.
	Subsection (3) states that these conditions must include conditions requiring the scheme to include provision (in accordance with the regulations):
for the appointment of an individual who is to be responsible for overseeing and monitoring the investigation and determination of complaints under the scheme;
about the terms and conditions for that individual, as well as the termination of their appointment;
outlining the types of complaints that may be made under a scheme, which must include complaints about the failure to comply with any code of practice approved or issued by the Secretary of State;
defining the length of time to be allowed for scheme members to resolve matters before a complaint can be escalated to the scheme;
about the circumstances in which a scheme might reject a complaint;
about co-operation (and joint exercise of functions) of an individual who is investigating or determining a complaint with persons who have functions in relation to other kinds of complaint and with enforcement authorities;
about the provision of information to the persons mentioned in paragraph (f);
about the level of any fees to be paid in respect of compulsory aspects of the scheme, and the level of those fees;
where the scheme provides additional voluntary services, for the fees charged in respect of these aspects of the scheme and for the fees to be set at a level that is sufficient to meet the costs of administering these aspects of the scheme and the costs of investigating and determining complaints under the voluntary aspects of the scheme;
for the scheme operator be able to award the following redress to complainants: providing an apology or explanation; paying compensation; and taking any such other actions in the interests of the complainant as the redress scheme may specify;
about enforcement of the scheme and scheme decisions;
for a person to be expelled from the scheme only in circumstance specified by regulations, once steps to secure compliance that are specified in regulations have been taken, and once the decision to expel the person has been reviewed by an independent person in accordance with the regulations;
for an expulsion to be revoked in circumstances specified in regulations;
prohibiting a person from joining the scheme when the person has been expelled from another redress scheme and the expulsion has not been revoked;
for circumstances in which the administration of the scheme is to be transferred to a different administrator; and
about the closure of the scheme by an administrator of the scheme.
	Subsection (4) allows for the regulations made under subsection (3) to include conditions requiring an administrator or proposed administrator of a scheme to undertake activities (both during and after being an administrator of the scheme); to set conditions in regulations under Subsection (3)(e) to require a scheme to reject complaints from current or former owners of certain descriptions specified in the regulations; and that regulations made under subsection (3)(o) may specify circumstances that require the administration of a scheme to be transferred to the lead enforcement authority or a body acting on behalf of the lead enforcement authority. Any scheme transferred in this way may become a designated, rather than an approved, scheme.
	Subsection (5) makes clear that Subsections (3) and (4) do not limit the conditions that may be set out in regulations under Subsection (2).
	Subsection 6) provides for the Secretary of State to make further provision about the approval or designation of redress schemes under Section 100(4)(b) including provision about the number of redress schemes which may be approved or designated; about how prospective schemes may make applications for approval; about the period for which an approval or designation is valid; about the withdrawal of approval or revocation of designation; and authorising or designating a scheme that provides for fees to be payable by compulsory members that cover the administration of, and investigation and determination of complaints under, the compulsory aspects of the scheme.
	Subsection (7) allows for regulations to confer functions (including those involving the exercise of discretion) on the lead enforcement authority and provide for the delegation of such functions by the lead enforcement authority.
	Subsection (8) sets out the definitions and meanings of the following terms: "compulsory aspects", "compulsory member", "voluntary aspects" in relation to a scheme.
	Subsection (9) makes clear a statutory instrument containing regulations under this Section (whether alone or with other provision) is subject to the affirmative procedure.