Debate: Is the Security Industry Over-Regulated or Under-Regulated?

Overseen by the Security Industry Authority a raft of regulations have helped to professionalise the security industry over the past decade and a bit.

If the private security industry has become an increasingly important part of UK Plc – not just in a financial sense, but in terms of protecting assets and the citizenry – then it needs a well calibrated system of regulation to reflect its more elevated status.

But does it have such a regime? And if not, how might the industry, in conjunction with the government, improve regulations?

Canvassing the views of people from across the industry, from man guarding to CCTV retail, we found that it’s a subject that divides opinion.

The guarding services executive: Abbey Petkar,  MD, Magenta Security

The government set up the Security Industry Authority (SIA) to regulate the industry, which mandated that all security officers must have a licence. Accreditation of individual guards went a long way to improving the industry’s reputation – but more in my opinion needs to be done.

One of the biggest issues since individual regulation was introduced has been the use of self-employed security staff. It became all too common to see unregistered security agencies hiring officers on a self-employment basis because they met the legal requirement to have a licence.

Using an unaccredited company that uses self-employed guards is where the biggest risk lies. Anyone employing a security officer from a company without proper insurance is taking a massive legal and financial risk.

And that’s why the industry needs further regulation. Magenta Security Services welcomed the announcement that all regulated security businesses will need to hold an SIA business licence. We had been calling for this regulation for a long time, not just for the benefit of professionals and the industry but ultimately for the safety of our clients too.

If the new regulation works as it should give greater credibility to genuine security companies and encourage the industry to constantly deliver high level services that benefit both clients and security guards, and ultimately improve the industry’s reputation.

The former installer and ex-SSAIB inspector: Mike Lynskey

For as long as I can remember the security industry has regulated itself voluntarily. It has standards to work to and regulatory bodies to satisfy, but there has always been a choice: become approved or not?

Is this enough?

Twenty years ago the SSAIB and NSI had fewer than 2,000 enrolled companies between them, while there must have been around 10,000 unregistered installers fitting systems.

Today we can add fire, CCTV, locksmiths and access control to the equation, so how many unregulated companies exist today is anybody’s guess.

Today you can emerge from prison and set yourself up as a security company and the public are blissfully unaware that the guy fitting their new door lock learned his trade in the nick.

Part P makes it illegal for electricians to take a screwdriver to the electrics in a dwelling place, while gas installers must be registered. And yet it’s easy to rob the customer blind with inferior security.

NSI- and SSAIB-approved companies have to compete with corner-cutters who do it cheaper. Then there are rogues selling cheap kit at wickedly high prices.

How can we, as an industry, standby and let this happen?

Based on competence and security screening a licence to trade should be mandatory. Then we could have a level playing field where installers can charge enough to afford training for their apprentices.

We can finally say that all systems are fit for purpose, fitted by approved people.

I believe the security industry is under-regulated.

The CCTV retailer: Jonathan Ratcliffe, www.cctv.co.uk

How does a customer know that their newly installed CCTV system is fit for purpose? Many small CCTV installers are operating according to no regulation at all.

Does this help the industry? Does this help the customer have confidence in the industry?

Is an electrician or handyman the right person to install a CCTV system to protect the shopkeepers’ livelihood? Pricing is always seen as a primary goal for many purchasers, but is the price over quality decision really a home goal?

Are they aware that if it’s not to the minimum police standard, then their footage will not stand up in court? Regulation of the industry would at least reassure customers that their system is up to spec – however, would they want to pay the price?

My view: softly regulate all installers to ensure quality and help the public’s confidence in the industry.

The installer: Ric Martin, technical manager, Sensory Secure (Ric was interviewed by IFSEC Global about his life as an installer)

I think that the industry is regulated enough, but not enforced enough. For example, when a company is being inspected the installer can pick the projects that the inspector goes on.

So an installer could do 97 bad projects and only three good projects but still pass with flying colours. I realise that there are issues with access but surely this can be arranged in good time as the inspectorate can pick the projects based on certificates issues throughout the year.

The security services CEO: Peter Webster, CEO, Corps Security

Don’t get me started. I think the current system is fit for purpose but we’re walking into a dangerous trap of over-regulation.

We have a proven, cost-effective and reliable system that has the potential for further improvement. The SIA has made sure that only those who should work in the security sector are permitted to do so and the government’s needless proposed introduction of two layers of licensing, instead of just one for individuals, will cost vast sums of money and be highly disruptive – just at a time when the perception and reputation of the industry is beginning to be restored after the well reported recent difficulties of some companies.

The idea that business-based regulation will better control the type of companies that can operate in the sector is a red herring – because there is no current major problem as far as I can see. Companies are not allowed to employ unlicensed individuals, so by definition they have to be above board.

The integrator: Peter Houlis, MD, 2020 Vision Systems

Yes and no. Some areas of security are better regulated than others and some not at all.

With the ratification of the Private Security Industry Act 2001 and the introduction of the SIA to regulate and police the operations of manned guarding (including security guarding, door supervision, close protection, cash and valuables in transit and public space surveillance using CCTV), key holding and the vehicle immobilising sector.

Law enforcement agencies and the public have a level of assurance that private security operatives are ‘fit and proper’ persons who have received appropriate training and are properly qualified to do their job.

Their approved contractor scheme, ACS further endorses operational and performance standards for suppliers of private security services. Although since inception the SIA has suffered its share of teething problems, it can provide effective regulation, and its accreditation gives purchasers of private security services independent proof of a contractor’s commitment to quality.

However, the UK’s electronic security industry remains largely unregulated. Currently anyone can set up a security installation business. There are thought to be circa 4,000 companies (excluding some electrical contractors and IT companies) involved in installing electronic security systems, of which Worryingly, of the 4,000-plus companies in existence, only about 1,800 undergo voluntary inspection by one of the industry’s recognised inspectorates.

Unlike the guarding sector the electronic security sector relies on self-regulation. There are some first-class companies out there, but also many bringing the industry into disrepute.

The association chairman: Michael White, director, Hampton Consultancy Ltd and chairman, International Professional Security Association

On the face of it a relatively easy question simply requiring agreement with one position or the other.

However, let’s think about it a little more. Can you accurately define the security industry or quantify what constitutes ‘over’ or ‘under’ regulated?

What is undoubtedly quantifiable is the wider industry’s commitment to working with the government to toughen regulation, develop a viable and proportionate enforcement regime and improve standards.

The past three and half years (following the initial intention to abolish the SIA) has demonstrated that beyond question. Businesses should, in my view, be regulated.

Directors and controlling minds should be screened to ensure honesty, probity and suitability and, the burden of responsibility focused where it, arguably, should have been focused some time ago.

So, that’s all good isn’t it? Well, actually no.

It appears that one government department can’t agree with a second over whether this can proceed, yet another department can’t sign off on the costs. The net result is that probably nothing will happen this side of the General Election in May 2015.

Three and a half years of the security industry –at its own not inconsiderable cost – working to develop and professionalise a multi-billion pound revenue stream for UK Plc – all seemingly for nothing.

Perhaps a more focused question might be: is the government committed to strengthening the development of this vital industry –or merely paying lip service to it?

The view from across the Atlantic: Todd Morris, CEO and founder, BrickHouse Security

If we want the public to trust us as ‘security professionals’ then regulation and licensing is required.  However, some states in the US have rules that are out of date or just don’t make sense.

Each state seems to reinvent the wheel when they build their regulations. It might make more sense for them to do the same thing that alarm companies do when they start with the same ‘contract’ then make small changes to ‘customise’ it.

This would allow each state to build on the work of the others and provide some consistency for those of us who operate in many states.

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