Receiving a Compliance Assessment Report (CAR) is a standard part of operating a business, but the findings therein can have dramatic consequences for how you operate.
However, a CAR may catch you off guard by saying “stop immediately” or by a specific date.
There are significant consequences for the operator if this issue is not handled effectively.
What is the problem with immediate Compliance Assessment Report actions?
In theory, the CAR does not act as a formal enforcement notice.
However, it is a regulatory decision that does have a real impact and findings in a CAR can result in enforcement action, including notices and prosecution.
You can appeal the decision, with Stage 1 designed to resolve misunderstandings quickly.
In practice, operators may need to stop immediately or with very tight deadlines.
Continuing operations may be viewed as an aggravating factor in any enforcement response.
With the review process taking weeks or longer, it can be frustrating as the impact is often felt before the review concludes.
Why do immediate Compliance Assessment Report actions cause trouble?
There are many cases where the CAR is acting on a factual misunderstanding rather than a legal dispute.
If the activity has been mischaracterised, then a regulatory conclusion will follow based on that misunderstanding.
By the time this is rectified, operational consequences may already be significant.
What should you do when receiving an immediate Compliance Assessment Report action?
Keep in mind two things that are often overlooked:
- Stage 1 is critical – Stage 1 is the point at which factual misunderstandings should be identified and corrected and not bypassed.
- Timing matters – If activity must stop now, but the review comes later, questions of fairness inevitably arise.
If you receive a “stop immediately” instruction, you should:
- Act quickly
- Focus on what the activity actually is
- Challenge the characterisation, not just the conclusion
- Consider whether the requirement should be suspended pending review and seek agreement where appropriate
Getting help with Compliance Assessment Reports
A few words in a CAR can stop a business overnight.
The key issue is a question of whether compliance actions should take effect before any challenge has been properly considered.
For now, the focus is on whether the Environmental Agency moves quickly enough to verify a CAR and any challenges raised against it.
Our team can support you in understanding your legal position should your business be impacted by a CAR.
Our specialist team can support you with compliance awareness so that you do not get caught out. Contact John Dyne today for help.