Promoting Fair Competition on Financial Standing
Operators will know all about the requirement to provide evidence of their financial standing when applying for an O-licence (and therefore to be able to demonstrate that they continue to meet the requirement for the duration that they hold an O-licence). It is a key part of the licensing regime and helps to promote fair competition, as well as providing crucial assurance that the operator has the means to properly maintain its vehicles.
However, some new operators who are just setting up their business are only able to demonstrate a very short financial history at the time of the application, or otherwise lack the funds to be able to demonstrate that they have access to the required sum. In such cases, the O-licence may be granted subject to an undertaking that the operator will provide further financial evidence to the OTC by a deadline date.
The Office of the Traffic Commissioner has stated recently that it plans to keep a very close eye on these cases and operators need to ensure that they comply with any undertakings to supply updated financial evidence on time,
The Senior Traffic Commissioner’s Statutory Guidance Document on Finance has recently been updated and includes very good information as to the ways in which an operator can meet the financial standing requirement. Click here to view the latest document.
If you need any help and advice on this matter or any other transport issues, then call us now on 01279 818280.