(1)Ofqual may impose a fee capping condition limiting the amount of a particular fee only if satisfied that the limit is necessary in order to secure value for money.
(2)Before imposing a fee capping condition in respect of a recognition Ofqual must give notice to the recognised body of its intention to do so.
(3)The notice must—
(a)set out Ofqual’s reasons for proposing to impose the fee capping condition, and
(b)specify the period during which, and the way in which, the recognised body may make representations about the proposal.
(4)Ofqual must have regard to any representations made by the recognised body during the period specified in the notice in deciding whether to impose the fee capping condition.
(5)Ofqual must establish arrangements (the “review arrangements”) for the review, at the request of a recognised body, of a decision to impose a fee capping condition.
(6)The review arrangements must require the decision on review to be made by a person within subsection (7).
(7)A person within this subsection is one who—
(a)appears to Ofqual to have skills likely to be relevant to decisions to impose fee capping conditions, and
(b)is independent of Ofqual.
(8)A person is independent of Ofqual for the purposes of subsection (7) if the person is—
(a)an individual who is not a member of Ofqual or Ofqual’s staff, or
(b)a body none of whose members is a member of Ofqual or Ofqual’s staff.
(9)A decision to impose a fee capping condition must not take effect before the later of—
(a)the expiry of the period during which a review can be requested under the review arrangements, and
(b)the completion of any review requested under those arrangements.
(10)Ofqual must, in performing its functions in relation to fee capping conditions, have regard to any guidance given by the Secretary of State.
(11)The Secretary of State must publish any guidance given under subsection (10).