Office of Communications Act 2002

The Office of Communications

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• (1) There shall be a body corporate to be known as the Office of Communications (in this Act referred to as “OFCOM”).

• (2) OFCOM shall consist of such number of members as the Secretary of State may determine; but he shall not determine a membership for OFCOM of less than three or more than thirteen.

• (3) The membership of OFCOM shall comprise—

• (a) a chairman appointed by the Secretary of State;

• (aa) a member appointed by the Scottish Ministers;

• (ab) a member appointed by the Welsh Ministers;

• (ac) a member appointed by the Minister for the Economy in Northern Ireland;

• (b) such number of other members appointed by the Secretary of State as he may determine; and

• (c) the executive members.

• (3A) Before appointing a member under subsection (3)(aa) the Scottish Ministers must consult the Secretary of State.

• (3B) Before appointing a member under subsection (3)(ab) the Welsh Ministers must consult the Secretary of State.

• (3C) Before appointing a member under subsection (3)(ac) the Minister for the Economy must consult the Secretary of State.

• (4) The executive members of OFCOM shall comprise—

• (a) the chief executive of OFCOM; and

• (b) such other persons (if any) as may be appointed to membership of OFCOM from amongst their employees.

• (5) It shall be for the members of OFCOM mentioned in subsection (3)(a) , (aa) , (ab) , (ac) and (b), after consulting the chief executive of OFCOM—

• (a) to determine whether there should be any executive members falling within subsection (4)(b) and (subject to subsections (2) and (6)(a)) how many; and

• (b) to make any appointments of executive members required for the purposes of any such determination.

• (6) The Secretary of State—

• (a) may, by a direction to OFCOM, set a maximum and a minimum number for the executive members of OFCOM; and

• (b) shall exercise his powers under this section to secure that the number of executive members of OFCOM is, so far as practicable, at all times less than the number of other members.

• (7) The Secretary of State may by order made by statutory instrument modify the numbers for the time being specified in subsection (2) as the maximum and minimum membership for OFCOM.

• (8) A statutory instrument containing an order under subsection (7) shall be subject to annulment in pursuance of a resolution of either House of Parliament; and the power to make such an order shall include power to make such incidental, supplemental, consequential and transitional provision as the Secretary of State thinks fit.

• (9) OFCOM shall not be treated for any purposes as a body exercising functions on behalf of the Crown; and, accordingly, no person shall be treated as a servant of the Crown by reason only of his membership of, or employment by, OFCOM.

• (10) The Schedule (which makes provision in relation to OFCOM) shall have effect.

• (11) Paragraphs 1 and 2 of the Schedule apply in relation to the appointment made under subsection (3)(aa) as if—

• (a) any reference to the Secretary of State was to the Scottish Ministers, and

• (b) after paragraph 2(6) there were inserted—

(7) Before the Scottish Ministers remove a person from office they must consult the Secretary of State.

• (12) Paragraphs 1 and 2 of the Schedule apply in relation to the appointment made under subsection (3)(ab) as if—

• (a) any reference to the Secretary of State were to the Welsh Ministers, and

• (b) after the paragraph 2(7) treated as inserted by subsection (11) there were inserted—

(8) Before the Welsh Ministers remove a person from office they must consult the Secretary of State.

• (13) Paragraphs 1 and 2 of the Schedule apply in relation to the appointment made under subsection (3)(ac) as if—

• (a) any reference to the Secretary of State were to the Minister for the Economy, and

• (b) at the end of paragraph 2 there were inserted—

(9) Before the Minister for the Economy removes a person from office the Minister must consult the Secretary of State.”

Initial function of OFCOM

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Management of OFCOM

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OFCOM shall, in managing their affairs, have regard—

• (a) to such general guidance concerning the management of the affairs of public bodies as OFCOM consider appropriate; and

• (b) subject to any such guidance and only to the extent that they may reasonably be regarded as applicable in relation to a statutory corporation, to generally accepted principles of good corporate governance.

Functions of existing regulators

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Winding up of OFCOM on abandonment etc. of proposals

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Interpretation

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Short title, commencement and extent

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• (1) This Act may be cited as the Office of Communications Act 2002.

• (2) Sections 1, 2 and 3 and the Schedule shall come into force on such day as the Secretary of State may by order made by statutory instrument appoint; and different days may be appointed under this subsection for different purposes.

• (3) This Act extends to Northern Ireland.

• (4) Her Majesty may by Order in Council extend the provisions of this Act, with such modifications as appear to Her Majesty in Council to be appropriate, to any of the Channel Islands or to the Isle of Man.

SCHEDULE

Qualification for membership of non-executive members

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• (1) Before appointing a person to be the chairman or another non-executive member of OFCOM, the Secretary of State shall satisfy himself that that person will have no such financial or other interest as is likely to affect prejudicially the carrying out by him of his functions as a member of OFCOM.

• (2) The Secretary of State shall also satisfy himself from time to time with respect to the chairman and every other non-executive member of OFCOM that that member has no such interest.

• (3) Every person who—

• (a) is a person whom the Secretary of State proposes to appoint to be the chairman or another non-executive member of OFCOM, or

• (b) is the chairman or another non-executive member of OFCOM,

shall, whenever requested by the Secretary of State to do so, furnish him with such information as the Secretary of State considers necessary for the performance by him of his duties under sub-paragraphs (1) and (2).

• (4) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Tenure of office

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• (1) Subject to the following provisions of this paragraph, the chairman and every other non-executive member of OFCOM shall each hold and vacate office in accordance with the terms of his appointment.

• (2) A person’s appointment to be the chairman or another non-executive member of OFCOM must state the period for which the appointment is made; but a person shall be eligible for re-appointment at the end of any such period.

• (3) The chairman and every other non-executive member of OFCOM may at any time resign his office by notice in writing to the Secretary of State.

• (4) If the Secretary of State is satisfied that the chairman or another non-executive member of OFCOM—

• (a) is an undischarged bankrupt or a person in relation to whom a moratorium period under a debt relief order applies (under Part 7A of the Insolvency Act 1986), or has had his estate sequestrated without being discharged,

• (b) has made an arrangement with his creditors, or has entered into a trust deed for creditors, or has made a composition contract with his creditors,

• (c) has such a financial or other interest as is likely to affect prejudicially the carrying out by him of his functions as a member of OFCOM,

• (d) has been guilty of misbehaviour, or

• (e) is otherwise incapable of carrying out, or unfit to carry out, the functions of his office,

the Secretary of State may by notice in writing remove him from office.

• (5) At the time of removing a person from office under sub-paragraph (4) the Secretary of State must make public the decision to remove the person.

• (6) The Secretary of State must—

• (a) give the person a statement of reasons for the removal, and

• (b) if so requested by the person, publish the statement.

Remuneration and pensions of non-executive members

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• (1) OFCOM may pay to the chairman and other non-executive members of OFCOM such remuneration and allowances as the Secretary of State may determine.

• (2) OFCOM may pay, or make provision for paying, to or in respect of the chairman and other non-executive members of OFCOM, such sums by way of pensions, allowances or gratuities as the Secretary of State may determine.

• (3) Where—

• (a) a person ceases, otherwise than on the expiry of his term of office, to be the chairman or to be a non-executive member other than the chairman, and

• (b) it appears to the Secretary of State that there are special circumstances which make it right for him to receive compensation,

OFCOM may make a payment to him of such amount as the Secretary of State may determine.

• (4) If any non-executive member of OFCOM—

• (a) is a participant in any pension scheme applicable to his membership of OFCOM, and

• (b) on ceasing to be a non-executive member of OFCOM, becomes an employee of OFCOM or both such an employee and an executive member,

he may, if the Secretary of State so determines, be treated for the purposes of the pension scheme as if his service (after ceasing to be a non-executive member of OFCOM) as an employee or executive member of OFCOM were service as a non-executive member of OFCOM.

Deputy chairman

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• (1) The Secretary of State may appoint any member of OFCOM who is a non-executive member to be the deputy chairman of OFCOM.

• (2) A person appointed to be the deputy chairman—

• (a) shall cease to be the deputy chairman if he ceases to be a member of OFCOM; but

• (b) shall otherwise hold and vacate that office in accordance with the terms of his appointment.

• (3) The deputy chairman of OFCOM shall be entitled to carry out the functions of the chairman, in such cases and in such manner as may be determined by or in accordance with any directions given by the chairman or the Secretary of State.

Chief executive and other employees of OFCOM

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• (1) There shall be a chief executive of OFCOM.

• (2) The chief executive shall be appointed by the chairman and other non-executive members of OFCOM with the approval of the Secretary of State.

• (3) OFCOM may appoint such other employees as they may determine and make such other arrangements for the staffing of OFCOM as they think fit.

• (4) Sub-paragraph (1) shall not apply in relation to any time before such date as the Secretary of State may notify to OFCOM as the date from which they are required to have a chief executive; and the membership of OFCOM shall not be required at any time before that date to include any executive member.

Terms and conditions of executive members of OFCOM

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• (1) The chief executive shall be appointed to hold his office, and the other executive members of OFCOM shall be appointed as executive members and employed by OFCOM, on such terms and conditions, including terms and conditions as to remuneration, as the chairman and other non-executive members may determine.

• (2) If the chairman and other non-executive members of OFCOM so determine in the case of any of the employees of OFCOM who are executive members, OFCOM shall—

• (a) pay, to or in respect of those employees, such pensions, allowances or gratuities, or

• (b) provide and maintain for them such pension schemes (whether contributory or not),

as the chairman and the other non-executive members may determine.

• (3) If any employee of OFCOM who is an executive member—

• (a) is a participant in any pension scheme applicable to his employment, and

• (b) becomes a non-executive member of OFCOM,

he may, if the Secretary of State so determines, be treated for the purposes of the pension scheme as if his service as a non-executive member were service as an employee of OFCOM.

• (4) If any employee of OFCOM who is an executive member—

• (a) is a participant in any pension scheme applicable to his membership of OFCOM, and

• (b) ceases to be an executive member without ceasing to be an employee of OFCOM,

he may, if the Secretary of State so determines, be treated for the purposes of the pension scheme as if his service (after ceasing to be an executive member) as an employee of OFCOM were service as an executive member of OFCOM.

Other employees of OFCOM

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• (1) The employees of OFCOM who are not executive members shall be appointed to and hold their employments on such terms and conditions, including terms and conditions as to remuneration, as OFCOM may determine.

• (2) If OFCOM so determine in the case of any of the employees of OFCOM who are not executive members, OFCOM shall—

• (a) pay to or in respect of those employees such pensions, allowances or gratuities, or

• (b) provide and maintain for them such pension schemes (whether contributory or not),

as OFCOM may determine.

• (3) If any employee of OFCOM—

• (a) is a participant in any pension scheme applicable to his employment, and

• (b) becomes an executive member or a non-executive member of OFCOM,

he may, if the Secretary of State so determines, be treated for the purposes of the pension scheme as if his service as a member of OFCOM were service as an employee of OFCOM.

Finances of OFCOM

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• (1) It shall be the duty of OFCOM so to conduct their affairs as to secure that their revenues so far as they —

• (a) derive from the exercise of powers to impose charges or fees in respect of the carrying out of particular functions, and

• (b) do not fall to be paid into the Consolidated Fund of the United Kingdom or of Northern Ireland,

are at least sufficient to enable OFCOM to meet the costs of carrying out the functions to which the revenues relate.

• (2) Any excess of OFCOM’s revenues for any financial year over the sums required by them for that year for meeting their obligations and carrying out their functions shall be applied by OFCOM in such manner as the Secretary of State, after consultation with OFCOM, may direct.

• (3) A direction under sub-paragraph (2) may require the whole or any part of any such excess to be paid to the Secretary of State.

• (4) The Secretary of State shall pay any sums received by him under sub-paragraph (3) into the Consolidated Fund.

• (5) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Grants to OFCOM

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• (1) The Secretary of State may, with the consent of the Treasury, make grants to OFCOM of such sums as he may think fit for the purpose of enabling OFCOM to incur or meet liabilities in respect of capital and revenue expenditure.

• (2) Grants under this paragraph shall be paid out of money provided by Parliament.

Advances to OFCOM

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• (1) The Secretary of State may make advances to OFCOM out of money provided by Parliament.

• (2) Any sums advanced under this paragraph shall be repaid to the Secretary of State at such times and by such methods, and interest on those sums shall be paid to him at such times and at such rates, as he may from time to time direct.

Accounts and audit

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• (1) OFCOM shall—

• (a) keep proper accounts and proper records in relation to the accounts, and

• (b) prepare in respect of each financial year a statement of accounts in such form as the Secretary of State may direct.

• (2) OFCOM shall, within such period after the end of the financial year to which it relates as the Secretary of State may direct, send copies of every statement prepared under sub-paragraph (1)(b) to—

• (a) the Secretary of State; and

• (b) the Comptroller and Auditor General.

• (3) The Comptroller and Auditor General shall—

• (a) examine, certify and report on every statement sent to him under sub-paragraph (2); ...

• (b) lay a copy of the statement and of his report before each House of Parliament , and

• (c) send a copy of the statement and of his report to the Scottish Ministers and the Welsh Ministers and the Minister for the Economy in Northern Ireland.

• (4) The Scottish Ministers shall lay a copy of the statement and report sent to them under sub-paragraph (3) before the Scottish Parliament.

• (5) The Welsh Ministers shall lay a copy of the statement and report sent to them under sub-paragraph (3) before the National Assembly for Wales.

• (6) The Minister for the Economy in Northern Ireland shall lay a copy of the statement and report sent to the Minister under sub-paragraph (3) before the Northern Ireland Assembly.

Annual report

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• (1) As soon as possible after the end of each financial year, OFCOM shall prepare and send to the Secretary of State , the Scottish Ministers and the Welsh Ministers and the Minister for the Economy in Northern Ireland a report of the carrying out of their functions during that financial year.

• (2) Every report under this paragraph shall incorporate—

• (a) a report of OFCOM’s proceedings during that year; ...

• (aa) a report about OFCOM 's performance, during that year, of their duty under section 29 of the Postal Services Act 2011 (duty to secure provision of universal postal service); and

• (b) such information relating to the financial position of OFCOM, and to any other matters that he considers appropriate, as the Secretary of State may direct.