New Rules for Financial Standing 2016
Each year, the amount of money that an operator must have readily available to it in order to satisfy its legal obligation to be of "appropriate financial standing" changes with reference to EU exchange rates. As operators will be well aware, the amount an operator must have available to it is calculated with reference to the number of vehicles authorised by its operator's licence.
The rates which will apply from 1st January 2016 have recently been announced by the Department for Transport and thanks to the strength of the pound against the Euro, the rates for standard national and international licence holders will be reduced, although those for restricted licences will remain as they currently are.
The new rates which will come into effect for 2016 will be as follows:
1. For standard national or standard international licence holders:
- £6,650.00 for the first vehicle, and;
- £3,700.00 for each additional vehicle.
2. For restricted licence holders:
- £3,100.00 for the first vehicle, and;
- £1,700.00 for each additional vehicle.
By way of a reminder - the required sums must be readily available to the operator and the Traffic Commissioner is empowered to request evidence of financial standing from any operator's licence holder at any time. Operators should refer to the Senior Traffic Commissiioner's Statutory Document 2 - Finance (available for free via: https://www.gov.uk/government/uploads/system/uploads/attachment_data/file/485017/2-finance-2015.pdf ) for full details on what evidence will be accepted as proof that the requirement is fulfilled.
Alternatively, or for any further advice on what is required to ensure you meet the requirement to be of appropriate financial standing, please do not hesitate to give us a ring on 01279 818280.