ESTATE agents or salespeople who violate the industry's code should have penalties imposed on them by the regulatory authority, according to the working group on the regulation of estate agents. If an allegation is made against an estate agent or salesperson that he has acted improperly, the regulatory authority may hold a hearing and summon him to appear before it. If the authority considers the allegation against him is proven, it can impose one or more of the following penalties: Reprimand the licence holder. Require the licence holder to pay the inquiry's costs. Impose a fine prescribed by the authority. Suspend his licence. Impose conditions or limitations on his licence. Cancel his licence, disqualifying him from holding one temporarily or permanently. To ensure the credibility of the regulatory authority, its processing of licensing applications should be clear. The working group recommends that the legislation should allow any person to object to the granting of a licence to an applicant where the applicant fails to satisfy licensing requirements. If the objection is proved to be valid by the authority, a hearing should be arranged for the objector and applicant to present their cases. After reaching a decision, the authority will decide what costs, if any, should be paid by the licence applicant or the objector. To avoid contravening the requirements of the Bill Of Rights Ordinance, it is essential that any licence applicant or holder unhappy with the decision of the regulatory authority should have the right of appeal. It is recommended that the legislation should enable an independent and impartial appeal panel comprising Government-appointed members to be established. The legislation should outline offences and their maximum penalties for serious breaches of the law which may lead to prosecution.