The PCA's regulatory powers

PCA Advice

Making sure that tied tenants and others have clear information about the Pubs Code and its application is an important part of the work of the PCA. The PCA can issue advice on any matter relating to the Pubs Code to tied tenants and regulated pub companies, and any organisations who represent their interests. Examples of advice issued by the PCA include factsheets and advice notes.

Advice may be issued where, for example, the PCA wishes to clarify their view to help the industry understand how they may approach a particular matter. It is not a substitute for a party to an arbitration (or tied pub tenant thinking about arbitration) taking their own legal advice about their individual circumstances.

Statutory advice is not binding on a regulated pub-owning business or any other person - that is, by law it does not have to be followed. Only the courts of England and Wales can provide a binding interpretation of the Code. 

Statutory Guidance

The PCA can also publish guidance about:

• applying the Pubs Code
• steps pub companies need to take to comply with the Code
• practices and procedures the PCA intends to adopt in carrying out its functions
• any other matter relating to the Code.

The PCA is required by law to consult with anyone they consider appropriate before publishing guidance. The PCA must also take published guidance into account in carrying out their functions. This includes in investigating Code breaches and taking enforcement action as a result. The PCA (and any appointed arbitrator) must also take such guidance into account when arbitrating Code disputes. You can find guidance issued by the PCA (known as statutory guidance) here.

The regulated pub companies must always comply with the Pubs Code. Statutory guidance does not change the law. In order to ensure clarity and consistency of approach, those pub companies should follow the guidance unless they have, and can demonstrate on evidence, a very good reason not to. Where guidance was not followed, the PCA would expect the pub company to justify and evidence why that was appropriate in the circumstances and how the approach taken was Code-compliant. Where appropriate, guidance will make clear where there are steps that pub companies need to take in order to comply with the Pubs Code.

Where there is a reasonable suspicion that a pub company has breached the Code, the PCA has legal powers to investigate with enforcement measures ranging from recommendations to imposing financial penalties on a pub company. The PCA will also work collaboratively with pub companies to respond to Code compliance issues, where appropriate. 

In considering when and how to exercise regulatory powers, the PCA will take a targeted and proportionate approach, and must take account of the PCA's statutory guidance. 

The PCA adopts a modern regulatory approach which reflects the principles of the Regulators’ Code. 

The PCA must make a report to the Secretary of State if, in the PCA’s opinion, the pub company is engaging in an unfair business practice that is designed to avoid the Code. Find out more in our Code avoidance and reports to the Secretary of State Factsheet. The Pubs Code sets out the meaning of an 'unfair business practice'. The PCA does not have legal powers to require the pub company to provide evidence to establish whether a report is necessary.