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JGM, Solicitor
Category: Law
Satisfied Customers: 12377
Experience:  30 years as a practising solicitor.
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Dear Sirs I have question about business law. As you can

Customer Question

Dear Sirs
I have question about business law.
As you can imagine, I wouldnt like this question to be posted on your website in the answered questions as this is confidential business matter.
Govt formed MedCo ( to regulate medicolegal companies. Companies wishing to register with MedCo has to pay license fees of either 90,000 or 18000 per year depending upon if Tier 1 or teir 2 license is applied for.
we applied for our two companies, company A and Company B. Registration for both companies was approved shortly after we applied and invoices of 90,000 were issued to us. We are told to pay the license fees before companies can be activated in the system. We were also told that MedCo will ask us to show evidence of meeting required criteria in due course.
We paid license fees for Company A, were made active and are operating now. We are asked to meet qualification critieria and provide documentary evidence which was provided, the process is still continued. As per my knowledge, there are 11 other companies operational as Tier 1 and are on different stages of audit/qualification criteria.
Last week we decided to pay fees for company B and called MedCo to confirm that we will be paying the license fees in a couple of days, however they told us not to pay License fees but meet full qualification criteria before we will be allowed to pay fees and made operational. They told that now process has changed.
My question is:
When our Company A and other 10 companies has still not completed qualification critieria but operating since April 2015, can they force company B to meet qualfication critiera before they make it operational?
Is it not against equality and fair treatment?
If Company A is still going through process, Company B will also take several months before completing qualification process, company B will not be deprived of operating and doing business while other 11 companies are operating?
What is the legal position and is it legal for them to change process for some of the companies who even though registered at same time as other but have decided to pay license fees now?
L Akhter
Submitted: 2 years ago.
Category: Law
Expert:  JGM replied 2 years ago.
Thank you for your question.
This is not about business law. This is about legislation and regulation. Any regulator is given a wide discretion about how to deal with applications from organisations wishing to be licensed. Your question to them should be to ask them about the basis on which the rules have changed. I suspect they will have realised that it unwise to take vast sums of money from organisation when there has been no evidence that these organisation meet statutory criteria.
Happy to discuss further.
Please leave a positive response so that I am credited for my time.
Customer: replied 2 years ago.
Thanks for your reply.
Please confirm that my question will not be posted on your website in the answered questions section.In a voicemail left on my phone, they said that since MedCo is now more mature, therefore we have changed our processes and we work differently now. I also have an email from them which i can forward to you.
As you might have seen MedCo website and would know more details about the regulator now.
MedCo has not completed first cycle of auditing/verifying criteria in since its formation in April 2015. Now for them to complete the audit of Company B before allowing us operate will take very long time (at least 8 months at current speed of their work) which will affect company B's business.
My question is are they legally allowed to treat Company A (and the batch of 10 others) and Company B differently?
Expert:  JGM replied 2 years ago.
The answer to your question is yes, assuming they can point you to the authority that they have to do so. It may be that they can but you have to ask them for their authority to do so. If their answer is that they have changed their processes they have to be able to confirm that they are allowed to do that within themselves. In other words they can change their rules without any external permission. Given the nature of their function that is likely.
Please note this is a public forum and that your personal details are anonymised but our exchanges can be read by others. Whilst I have nothing to do with the site admin, that would have been made clear in the earlier stages of your signing up to the site.