Memorandum submitted by the Association
of Company Registration Agents
SUMMARY
1. In ACRA's view:
— The quality of service from Companies
House is good.
— It is a responsive organisation.
— It is better that its new information
processing system is delayed until it is ready than that there
is any risk of it being introduced and failing.
— It needs to continue to stay alert
to straying beyond its statutory duties and into unfair competition.
SUBMISSION
2. The Association of Company Registration
Agents (ACRA) represents the UK's foremost company formation agents
and corporate service providers. It has had a close relationship
with Companies House (CH) for over 30 years.
3. ACRA members act as a conduit between
their own customers (often but by no means exclusively in the
professions) and Companies House. As such, the formation agent
and corporate service provider eases Companies House's task:
— by the proper preparation of documentation,
whether on paper or filed electronically;
— by delivering its documentation and
requiring searches in sufficient volume to facilitate the use
of electronic services, contributing to CH's own efficiency and
effectiveness;
— by providing for Companies House
a group of identifiable and informed customers with which it can
discuss possible new developments to its services;
— and by helping Companies House to
communicate with the wider commercial world.
4. Our view of the quality of Companies
House's services covers almost all the work of CH, in volume.
We are perhaps uniquely placed to provide commentary on how well
the services are delivered. Our view is that CH does well. As
their own figures show, they meet most of their targets. The times
when there are errors in the material that CH provides (whether
certificates or searches) are rare. They are also to be congratulated
for being communicative. There are regular meetings between ACRA
and CH; CH provides open and full information on its website and
elsewhere on its requirements and on new developments; and ACRA
members do feel that in general they get a helpful response from
CH on those occasions when they do need to contact the agency.
5. ACRA members have noticed the delays
to the Companies House Information Processing System (CHIPS).
It is of course regrettable that this has been delayed and gone
over budget. However, in ACRA's view it would have been much more
regrettable if the new systems had been introduced before they
were properly ready. The costs to the commercial world of a CH
that fails to function properly, or which has not fully thought
through the complexities of what it is trying to do, enormously
outweigh the additional costs of getting the new systems right.
CH has become such a fundamental part of the commercial fabric
that the economy at large cannot afford errors or downtime. So
tough though it has been, and whether there is any blame to be
ascribed or not, ACRA welcomes CHIPS not being introduced until
it is fully ready (though at the time of writing this memorandum,
it has not yet gone live).
6. One of our continuing concerns with CH
concerns its monopoly position and that it should not be abused.
It is a small step between providing its services efficiently
and providing unfair competition with the private sector. Areas
such as the possible future provision of a "citizen's company"
do give ACRA cause for concern. The public could be seduced by
a CH service of providing new companies at a price no private
service provider could match, imagining that because it is government-backed
they will receive the company they need. But that may well not
be the case. The constitution of the company may not suit the
circumstances of the owners, who should be taking independent
advice before taking a step of such importance. We hope that the
Committee will feel it appropriate to warn CH against exceeding,
or interpreting too liberally, what it regards as its statutory
functions.
February 2008
| 
