Postcomm considers licence exceptions

25 October 2001

Postal licence exceptions that would simplify regulation in the distribution of share dealing information and give more flexibility in the distribution of election material, are being considered by Postcomm.

A consultation document published today examines the possibility of excepting letter post from licensing requirements for three specific services.

Share settlement

CRESTCo operates the Stock Exchange’s CREST electronic securities settlement system. The CREST system must provide a means of conveyance for securities certificates and other paper documents associated with the holding and transfer of securities. At present documents are carried by the CRESTCo Courier and Sorting Service (CCSS) which is operated by TNT (UK) Ltd. CREST has asked for the CCSS service to be excepted from the requirement for a postal licence.

CRESTCo says that the CCSS’s dedicated service for a defined group of users is part of an activity already closely regulated by the Financial Services Authority, and to simplify regulation it has asked for CCSS to be excepted from further regulation. Postcomm says it is minded to grant the exception.

Distribution of election material

The Department of Transport Local Government and the Regions (DTLR), which oversees the distribution of electoral information, has asked for two exceptions for election material: for the distribution of polling cards, and for information from candidates.

The department says that in the weeks before the general election in May this year, industrial action caused significant disruption to postal services at the time when poll cards were being sent out. An exception would enable alternative delivery methods to be used in future and would clarify the legality of local authorities using their staff to distribute polling cards.

DTLR has also asked for an exception to allow for unlicensed delivery of candidates’ election messages. The Representation of the People Act allows Parliamentary and Assembly election candidates a free postal service by the universal service provider (currently Consignia) for one electoral message. In the event of postal disruption, these may not reach the voters on time. An exception opens up the possibility of alternatives for this service.

Notes for editors

Copies of the consultation document, Exceptions under Section 7 of the Postal Services Act, are available from Postcomm at 6 Hercules Road, London SE1 7DB.

The Postal Services Act 2000 prohibits the conveyance of letters without a licence issued by Postcomm. The Act provides for a number of exceptions to this prohibition. Changes can be made and exceptions introduced by the Secretary of State for Trade and Industry by order, if recommended by Postcomm. Before making recommendations, Postcomm must consult interested parties.