P oecd best Practice Principles for Regulatory Policy The Governance of Regulators
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| Advisory bodies An advisory body maybe used to provide insights from industry participants or the community on strategies to influence behaviour, or early warning on developments that may warrant a change in the compliance approach of the regulator. Community or industry engagement may also be useful to inform the development of the corporate plan. This may canvass the scope of the regulator’s activities to build greater understanding of the regulator’s operations. Some regulators have formal advisory bodies established in legislation, or an explicit power in legislation enabling the minister or the regulator to create such formal advisory bodies from time to time. In some circumstances, formal and explicit recognition of the important role of effective and structured engagement can be a useful mechanism to build a shared commitment to regulatory objectives (Meloni, 2010). In other cases, the establishment of such bodies has been an important element of a transition to an expertise-based governing board, from aboard previously made up largely of representatives of regulated entities. However, mandating an arrangement in legislation maybe unnecessarily rigid or prescriptive. Therefore it is important, when establishing anew body, to determine whether there is a strong case to mandate an advisory body in legislation and, if so, whether a sunset clause should be included. If an existing regulator is being reviewed, the need for an existing advisory body should be assessed. If the industry or other important stakeholders have gained confidence in the expertise-based board, its replacement by more flexible mechanisms may now be appropriate. It maybe unnecessary to mandate onerous appointment processes for those in purely advisory roles. 5. ENGAGEMENT – 93 THE GOVERNANCE OF REGULATORS © OECD 2014 Download 1.83 Mb. Share with your friends:
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