Role of the Royal Mail Group Compliance Officer – statement by Postcomm

As required by Condition 13 of the Licence issued by Postcomm, Royal Mail has appointed a
Compliance Officer with responsibility for certain tasks set out in the Licence. Postcomm
regards the compliance officer as an essential element of the regulatory framework and
considers that it would be helpful to set out in this note its view on the key aspects of the
Compliance Officer’s role.
The Licence envisages, and Postcomm expects, the Compliance Officer to play an active
role in the areas for which he has responsibility under the Licence. This requires the
Compliance Officer to have the requisite corporate authority and the resources necessary to
perform the role effectively. In Postcomm’s view, the compliance officer needs to take a
prominent role within the company seeking to influence appropriate corporate behaviour
and any necessary change in corporate culture to reflect the new regulatory system brought
about by the Postal Services Act 2000. After consultation with Postcomm, Royal Mail has
appointed Jonathan Evans, who is also Royal Mail Group plc’s Company Secretary, as its
Compliance Officer. In his wider role as Company Secretary, Jonathan Evans is also
responsible for corporate governance.
The Relevant Conditions of the Licence in respect of which the Compliance Officer has a role
to play concern the promotion of effective competition between postal operators
(Conditions 9-12) and the provision of information (Conditions 16 & 17). These provisions
cover:
• Access arrangements (Conditions 9 & 10);
• The competition provisions (Condition 11);
• The notification of certain specified matters on competition, mergers, takeovers and
change of control (Conditions 11 & 12);
• The provision of information to Postcomm and Postwatch (Conditions 16 & 17).
Condition 13 requires the Compliance Officer to do the following;
• Establish procedures for ensuring compliance
(a) with Conditions 9 – 12,
(b) with any requirements to provide information under Conditions 16 and 17, and
(c) with the requirement upon Royal Mail to take all reasonable precautions against risk
of failure to comply with the Relevant Conditions;
• Investigate third party allegations of contraventions of Conditions 9 – 12 or of breaches
of the established procedures described above; and
• Provide advice within Royal Mail Group plc (and to related persons) for facilitating
compliance with Conditions 9 – 12 and the procedures described above.
Royal Mail is required to provide and publish a comprehensive annual report on the
Compliance Officer’s activities.
The Compliance Officer is therefore responsible for ensuring that these important elements of
the regulatory framework are properly met. These tasks require the Compliance Officer to be
vigilant in ensuring that Royal Mail properly discharges its responsibilities under the Relevant
Conditions.
Royal Mail’s Licence requires it to have appropriate procedures in place and to be able to
demonstrate that these procedures and systems are effective in meeting the requirements of
Condition 13 of the Licence. As part of these procedures, the Compliance Officer must have
access to such appropriate staff and facilities as he reasonably requires in order to enable
him to undertake the functions required under Condition 13. Postcomm and Royal Mail intend
to review these procedures on a regular basis.
In addition, the Compliance Officer must ensure that processes are in place for the recording
of notifications of alleged breaches of the relevant requirements as well as for the
investigation of each such notification.
Postcomm expects the Compliance Officer to be active in providing advice to Royal Mail
(and related persons) and to satisfy himself that Royal Mail is taking steps to promulgate
within the company (and related persons) a clear understanding of these licence
requirements. The Compliance Officer is available to third parties to deal with any
representations of alleged contraventions of the Relevant Conditions, and welcomes informal
contact with others who have an interest in Royal Mail’s competitive behaviour.
Contact details for Royal Mail’s appointed Compliance Officer are:
Jonathan Evans
Compliance Officer
Room 502
Royal Mail House
148 Old Street
London
EC1V 9HQ
Tel: 020 7250 2298
Fax: 020 7250 2279
[email protected]
Postal Services Commission
August 2003