The Principles for the Governance of Regulators was discussed at the 21 November 2012 informal meeting of the Ad Hoc Network of Economic Regulators (NER) at the OECD, Paris and the 22-23 April 2013 meeting of the Regulatory Policy Committee at the OECD, Paris. This draft paper has been revised following both meetings and is now being published for public consultation.
As part of the work programme of the OECD’s Regulatory Policy Committee (RPC), work is being conducted to examine the delivery and implementation of regulations in the regulatory policy cycle. There is also a public consultation on a paper in relation to enforcement and inspections. This paper is part of the complimentary work on regulatory delivery and the actors involved in regulatory policy and governance.
Please send your comments and country examples (see Annex 1) electronically to Regulators.firstname.lastname@example.org by 31 August 2013. For further information contact Faisal Naru at email@example.com.
A good regulatory environment is an essential foundation for high performing nations to make their country a great place to work and live and to protect their environment. High performing regulators are a key lever to encourage innovation across the economy and foster productivity growth, through timely approval processes, flexible approaches to new issues and a service focus.
Over the last decade, OECD member countries have strengthened their scrutiny of new regulatory proposals. There is now a more careful examination of the need for regulation and the available design options (OECD 2009). Most governments have outlined their policy on improving the design of regulation and their approach to utilising tools, such as Regulatory Impact Analysis and stakeholder engagement mechanisms, and this is often supported by central scrutiny of proposed new regulation. As well as improving the design of new regulation, many member countries have searched for opportunities to remove unnecessary burdens on business and the community sector.
Good regulatory outcomes depend on more than well designed rules and regulations. This was recognised in the OECD’s Recommendation of the Council on Regulatory and Policy Governance (2012) which recommended that member countries: “Develop a consistent policy covering the role and functions of regulatory agencies in order to provide greater confidence that regulatory decisions are made on an objective, impartial and consistent basis, without conflict of interest, bias or improper influence.” (p. 4)
This draft OECD Best Practice Principles on the Governance of Regulators paper, is intended to assist members develop such a policy. It seeks to develop an overarching framework to support initiatives to drive further performance improvements across regulatory systems in relation to national regulatory bodies or agencies (regulators).
Efficient and effective regulators, with good regulatory practices, are needed to administer and enforce regulations. The comprehensive regulatory reviews of individual policy areas by governments frequently find that there is scope to enhance governance as part of broader initiatives to improve regulatory outcomes.2 It is clear that appropriate governance arrangements for regulators support improvements in regulatory practice over time, and strengthen the legitimacy of regulation.
Strengthening the governance of regulators will help to maintain the confidence and trust of those being regulated and the broader community (ANAO 2007). Good regulation helps to make OECD member countries healthier, cleaner, more prosperous and safer, while supporting innovative solutions to the challenges faced, and thereby serves the interests of all citizens.
Table of contents
Principles for the Governance of Regulators 1
Public Consultation draft 1
21 JUNE 2013 1
Executive summary 4
Role clarity 8
1.Principles for role clarity 8
preventing undue influence and maintaining trust 9