Update: The PCA has concluded its review of Stonegate’s historic breaches of the Pubs Code in relation to Rent Proposals
Stonegate has taken action to address historic breaches of the Pubs Code regarding the provision of rent proposals.
How did Stonegate breach the Pubs Code?
On 15 December 2022, the PCA reported that Stonegate had identified breaches of the Pubs Code in relation to legacy processes regarding the provision of Rent Proposals for new tied agreements.
Stonegate cooperated with the PCA by providing a significant volume of historical documentation. A review of this information by the PCA showed that Stonegate breached the Pubs Code through two non-compliant legacy processes affecting a total of 1,557 tenants.
The breaches consisted of 1,120 breaches of regulation 15(7) (requirement to provide a rent proposal) from the commencement of the Pubs Code until 1 July 2019, and 437 breaches of regulation 17(f) (requirement to provide the rent proposal before a tenant considers independent professional advice ahead of preparing their sustainable business plan) between 1 July 2019 and 1 April 2021.
Action taken by Stonegate
Stonegate confirmed that the legacy processes were changed with effect from the 2021/22 reporting year onwards so that tenants are provided with a rent proposal prior to preparing their business plan and seeking independent advice, in compliance with the Pubs Code.
Stonegate has taken appropriate steps to inform tenants about the Code breach which affected them, and to provide them with an opportunity to raise concerns about their individual circumstances. The PCA is satisfied that Stonegate has taken appropriate action in response to the breaches. Stonegate continues to work with the PCA to ensure its practices and procedures comply with the Pubs Code.
Enquiries about this matter can be sent to Stonegate’s Code Compliance Officer, James Richards at [email protected].
The PCA office can also be contacted at [email protected].