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Rules of representative bodies feedback

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Representative bodies can benefit buyers and sellers of professional services, as membership of these organisations can convey useful signals regarding the quality of service from different service providers. However, to ensure that rivalry between professionals is not diminished, especially between members of representative bodies, the rules of these organisations should meet certain criteria.

The membership criteria of professional organisations should be objective and transparent, particularly if membership of these organisations provides a competitive advantage to its members (for example by allowing suppliers to utilise a reputation for high quality or by providing access to reduced rates of indemnity insurance). In the absence of such criteria, non-members providing equivalent services and having identical characteristics as members may be placed at a competitive disadvantage and any signal of quality that membership conveys may not be accurate.

The rules of any professional body should not have either the object or effect of diminishing the level of rivalry between members. Notable examples of such rules are those that attempt to specify prices, limit price competition in other ways, or prevent members from competing against each other for work. The use of broad and subjective terms, such as "unfair competition", should also be avoided as these have the potential to be used in an anti-competitive manner.
professional services

Dublin

14 January 2011

 

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Halo, Lisa here

Lisa

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