Recent developments on the European Union private security industry services regulatory framework

1. Recent developments on the European Union private security industry services regulatory framework The 19th Annual International East-West Security Conference Madrid, September 22, 2010 Eduardo Cobas Urcelay

2. Summary • Introduction: Aproser and CoeSS • A growing interest for our industry • International perspective • European Institutions • Directive on Services: • Areas of private security • Security systems • Cash in Transit • Guarding • The future? EU private security industry services regulatory framework

3. Vision from the industry EU private security industry services regulatory framework

4. Founded 1977 • 13 companies representing 75% market • 80% Critical Infrastructures: nuclear, railways • 95% Cash in Transit • 100% Air Security • Role: • Labour relationships: common collective agreement • Image of the sector: communications department • Legal framework / relationships Public Administration • Training activities, etc EU private security industry services regulatory framework

5. Spanish private security market • Around 3.500 million euros • 100.000 people involved • Highly regulated market • Licensing for companies and security personnel • Intensive scrutiny by public authorities • Access and recurrent training EU private security industry services regulatory framework

6. European confederation of national private security associations • Founded in 1989 • 30 member federations and 2 corresponding members • 21 EU Member States and a total of 28 countries • 50,000 private security companies • 1.7 million private security guards • Yearly turnover of € 23 billion • Broader relationships: • Cooperation agreements: RASI, etc • Expanded role: United Nations ? EU private security industry services regulatory framework

7. Only representative European employers’ organisation for the private security services industry • Recognised by the European Commission as European private security social partner organisation • Counterpart: UNI europa • Joint activities: • Regulatory issues • Training • Organisation of work • Market conditions • Health and safety • Enlargement EU private security industry services regulatory framework

8. The European model of private security • It is the task of the government to analyse existing and future risks and to determine the level of security and protection necessary to face them • It is also the responsibility of the government to establish the correct legal framework within which both public and private organisms can operate • It is the responsibility of the governments to define the role and functions the private security companies can play – they grant the permits • Private security companies carry out the services, implement the regulatory framework • Companies perform the services with the necessary professionalism and quality • The government control the security companies, the services they provide and the security agents who carry out these tasks in an efficient and non-discriminatory way EU private security industry services regulatory framework

9. A European vision of PRIVATE-PUBLIC PARTNERSHIP is therefore necessary • Security cannot be regarded as a product to the regulated by the market • Security also cannot be regarded as the monopoly of the government Cooperation is inevitable EU private security industry services regulatory framework

10. A growing interest in our industry 11 September 2001 + Madrid + London: a decisive moment for our world a decisive moment for our industry EU private security industry services regulatory framework

11. Some examples • This model of Federal control plus flexibility mirrors the well regarded airline security systems in place in many European countries, which involve public/private partnerships. Many adopted this model of strong government oversight over high-quality private security companies after finding other models of airline security to be less effective Letter to Speaker of the U.S. House. USA Air security legal framework. October 2.001. President Georges Bush. • Europe's strengths are in its guard training and industry coordination. Security officer reform is a continual process in Europe, and nations are working together to determine and unify high standards for the private security industry across the European Union Report by Public Advocate for the City of New York. Betsy Gotbaum. February 2005. Undertrained, underpaid, and unprepared: security officers report deficient safety standards in Manhattan office buildings EU private security industry services regulatory framework

12. Private security and its role in European security. White Book. Preface Nicolas Sarkozy. Acting President European Council • examining the role of private security in overall security in Europe is a way of looking after the everyday security of European citizens. Private security firms are being called upon more and more to assist states in providing this protection, and at the same time creating new wealth in the form of jobs and businesses. • With the expansion of the Union to include Eastern Europe, supply and demand for security is more urgent and quality-focused than ever due to the gap created by an inevitable reduction in state spending and the sharing of missions between the different segments of the security market. EU private security industry services regulatory framework

13. A European perspective • Fundamental freedoms: • Free movement of services • The competences distribution: • Internal Market / Security issues • The institutional triangle • European Court of Justice: treaties • European Commission: • European Council EU private security industry services regulatory framework

14. European Institutions and private security (Ia) European Commission: • Guardian of the Treaties • Member States infringements: fundamental freedoms First generation: • C-114/97: Commission - Kingdom of Spain • C-355/98: Commission - Kingdom of Belgium • C-283/99: Commission - Italian Republic EU private security industry services regulatory framework

15. C-114/97: Commission v Kingdom of Spain Nationality conditions: companies, managers, workers • 37. However, the exercise of that activity does not mean that security undertakings and security staff are vested with powers of constraint. Merely making a contribution to the maintenance of public security, which any individual may be called upon to do, does not constitute exercise of official authority.” • 42. “The right of Member States to restrict freedom of movement for persons on grounds of public policy, public security or public health is not intended to exclude economic sectors such as the private security sector from the application of that principle…” EU private security industry services regulatory framework

16. European Institutions and private security (Ib) Comisión Europea: • Guardian of the Treaties • Infringements of Member States: fundamental freedoms Second generation: • C-171/02: Commission - Portuguese Republic • C-189/03: Commission - Kingdom of the Netherlands • C-514/03: Commission - Kingdom of Spain • C-465/05: Commission - Republic of Italy EU private security industry services regulatory framework

17. Portugal / The Netherlands / Spain • Legal personality • Specific / minimum share capital • References and guarantees already submitted • Authorisation requirements for companies • Licenses for guards: training /checks • Italy • Limited territorial validity of licences • Authorisation number of workers • Authorisation of prices EU private security industry services regulatory framework

18. Impact • Private security regulations remain national • ECJ decisions leads to amendments in national legislations: • Internal market oriented • National control mechanisms EU private security industry services regulatory framework

19. European Institutions and private security (II) • Recommendation Council: cooperation national authorities responsible for private security. 2002. • Some proposals/specific areas: enhanced air security /maritime (ISPS Code) • Additional standarisation initiatives: terminology / air security (CEN) EU private security industry services regulatory framework

20. The Services Directive: 2006/123/EC • Overall objective: complete European market for services • Specific approach for the private security industry • Article 2: exclusion of private security from scope • Article 38: additional harmonisation EU private security industry services regulatory framework

21. The Services Directive • Article 2. Scope 2. This Directive shall not apply to the following activities: …(k) private security services; • Article 38- Additional harmonisation The Commission shall assess, by 28 December 2010 the possibility of presenting proposals for harmonisation instruments on the following subjects: …(b) private security services and transport of cash and valuables. EU private security industry services regulatory framework

22. What means private security services? Handbook for the implementation of the Directive on Services. European Commission. The exclusion in Article 2(2)(k) covers services such as surveillance of property and premises, protection of persons (bodyguards), security patrols or supervision of buildings as well as the depositing, safekeeping, transport and distribution of cash and valuables. Services which are not “security services” as such, for instance the sale, delivery, installation and maintenance of technical security devices, are not covered by the exclusion. Thus, they have to be covered by measures implementing the Directive. EU private security industry services regulatory framework

23. Implementation process • Directive – national implementing measures • Deadline: end 2009 • Assessment by European Commission • Court of Justice ?? National laws amendments: • Spain: only ARCs/sec. systems connected to police remain covered by private security law • Similar: another countries EU private security industry services regulatory framework

24. A parallel? Process: EU Regulation on Professional Cross-Border Transportation of Euro Cash by Road between Euro Area Member States (I) • Proposal COM (2010) 377 final (July 14, 2010) Scope: • Euro-area Member States. Possible extension to non euro countries. • Covers point-to-point transports and retail transports of cash • The transports must as a rule be carried out during daytime, with exceptions • The CIT-vehicle must return to its Member State of origin within the same day EU private security industry services regulatory framework

25. A parallel? Process: EU Regulation on Professional Cross-Border Transportation of Euro Cash by Road between Euro Area Member States (II) • CIT cross-border license • Particular requirements CIT staff - training • Different Authorised transport types: • opt-out /Member States • Application of national rules: • Weapons • Relationships police forces • Behaviour CIT staff outside building • Security of locations /pick-up or delivery EU private security industry services regulatory framework

26. Major consequences: • Recital 3: • This Regulation is the response to the possible presentation of harmonisation instruments for the transport of cash as expressed in Article 38(b) of the Directive 2006/123/EC of the European Parliament and of the Council of 12 December 2006 on services in the internal market. • Basic principles fixed: licensing /training /authorisation / cooperation police, role of national authorities • No implementation needed: Regulation EU private security industry services regulatory framework

27. Guarding? • December 2010 deadline • Uncertain scenario – clear precedent (CIT) • A possible harmonisation ?? EU private security industry services regulatory framework

28. Ratio guards/inhabitantsPanoramic Overview of Private Security Industry in the 25 Member States of the European Union. 2008. EU private security industry services regulatory framework

29. Reasons for expansion in the private security sectorSource: Health and safety in the private security sector. Identifying the risks. Université Libre de Bruxelles. 2003. • The outplacement of security activities which were previously performed by the companies themselves. • An increase in the feeling of insecurity in society as a whole; • The transfer of tasks traditionally within the remit of public security services • The development of new market segments EU private security industry services regulatory framework

30. Current situationPanoramic Overview of Private Security Industry in the 25 Member States of the European Union • Most countries have specific private security legislation • Licensing systems / criminal records • Differences remain: • Competences • Authorities in charge • Uniforms /identification • Use of weapons • Training systems EU private security industry services regulatory framework

31. National law amendments: • EU requirements /ECJ – Directive on Services • New licensing systems • Training requirements • New competences /private security • No full harmonisation is feasible /advisable EU private security industry services regulatory framework

32. Joint Declaration CoESS-Uni-Europa on European harmonisation of legislation governing the private security sector (1)Brussels, December 2.001 1. Authorisations to practice (workers) 2. Licences (companies) 3. Evaluation and supervision by Public Authorities 4. Professional training 5. Provision of cross-border services 6. Health and safety 7. Working conditions Remains a valid reference EU private security industry services regulatory framework

33. The future? • Resolution 18/2 of the United Nations Committee on Commission on Crime Prevention and Criminal Justice on the contribution of civilian private security services (CPSS) to crime prevention and community safety: selection, licensing, training, control, etc • Clear differentiation from private military companies • Enhanced cooperation: role of professional associations • EU: Critical infrastructures developments EU private security industry services regulatory framework