Mandatory business licensing of security companies was probably the most significant omission from the Private Security Industry Act 2001. It has allowed everyman and his dog to set up and run a security company, an alarming number of these are evading tax and exploiting their workforce, by some distance, the most important factors in preventing industry improvement.
It would finally seem like the oh so long wait for implementation of business licensing is almost over with a handover of responsibility, and indeed control of the Security Industry Authority, from the ‘Disinterested and Ineffective’ department of the Home Office, to the somewhat more engaged sounding Homeland Security, and Minister for Security, Dan Jarvis.
But Dodgy Companies Will Still Get Licences?
It is an open secret that many of the current ACS-approved security companies are, to be blunt, abysmal. It is not difficult to get admin up to scratch and make sure a few staff are properly vetted, paid, and with full personnel files, all ready for SIA auditing. This is pretty much enough to get a company over the bar to achieve ACS approval standards.
In exactly the same way, rootin shootin Dwight McNasty and his cowboy mates would be able to get their companies licensed as well. Frustrating, but sadly inevitable.
The BIG difference, however, is that anyone will be able to report a licensed company for malpractice, criminality, or a breach of licensing standards. Once a complaint is investigated and upheld, a company can be struck off the register, and more importantly, the directors of these companies can be banned from having any kind of significant control of a security company in the future.
This, after a few years, WILL have a huge positive effect on the quality and reputation of the private security industry, with a regulatory environment and robust enforcement, just too hostile for the grubby underbelly of the industry to endure.
Will Licensing Be Too Complicated To Implement?
If the SIA had to develop a process from scratch, this would indeed become a costly and complicated system to roll out.
Luckily, the SIA would not have to work from scratch. The current Approved Contractor Scheme just needs a new “mandatory licensing tier” sitting below the current ACS approval status. Yes, there may need to be some rewording and thought given to the minimum required standard specification, but the heavy lifting has already been done by the ACS scheme’s system.
Recommended Reading: Security Company Licensing in the UK
ACS Costs Are Already Prohibitive!
It would seem sensible to automatically license all currently approved ACS companies without further fee.
For those companies only applying to join the register of mandatory licensed security businesses, there is no reason why the initial application needs to be much more than the cost of individual security officer licensing, with similar checks and renewal every three years.
With the reduction in companies allowed to operate in the sector, and the resultant improvement in market conditions, I don’t feel it unreasonable for a company applying to trade in the security industry for the first time to pay a slight premium for this initial licence application. This would also be a strong indication of the ethical and quality commitments being made to simply operate in the sector.
But What About Enforcement?
At the end of the day, the potential huge success of this system will depend on the role of investigation and enforcement teams at the SIA. If the offending companies consistently go unpunished, and the old offenders manage to remain on the security company register, then much like the PSIA2001 itself, another good idea will become a massive disappointment.
While licensing alone won’t fix all the industry’s problems, it’s a vital step in the right direction. A robust system, with meaningful enforcement, will gradually raise standards and restore confidence across the sector. At GuardPass, we believe in a fair, transparent, and high-performing security industry. That’s why we help companies hire licensed and vetted security staff efficiently and ethically—giving you the tools to stay compliant and competitive in a changing regulatory landscape.