Principles for the Governance of Regulators Public Consultation draft
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Principles for the Governance of RegulatorsPublic Consultation draft21 JUNE 2013
Foreword1A 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 Foreword 2 Executive summary 4 Role clarity 8 1.Principles for role clarity 8 2.Objectives 8 3.Functions 8 4.Coordination 8 preventing undue influence and maintaining trust 9 5.Principles for the degree of independence 9 6.Independence 9 7.Maintaining trust 9 Decision-making and governing body structure
8.Principles for decision-making and governing body structure for independent regulators 10 9.Decision-making model 10 10.Relationship between the responsible the Minister, governing body and the Chief Executive Officer 10 11.Membership of the governing body 12 Accountability and transparency 13 12.Principles for accountability and transparency 13 13.Accountability and performance 13 14.Transparency 13 15.Review of decisions 13 Engagement 14 16.Principles for engagement 14 17.Fit for purpose 14 18.Avoiding capture and conflicts of interest 14 Funding 15 19.Principles for funding 15 20.Supports outcomes efficiently 15 21.Regulatory cost recovery 15 22.Litigation and enforcement costs 15 23.Funding of external entities by a regulator 15 PERFORMANCE EVALUATION 16 24.Identifying the scope 16 25.Developing indicators 16 26.Use of performance evaluation 16 Introduction 17 27.Setting the scene 17 28.The scope of this document 18 29.Improving outcomes through better governance 22 30.Implementation 23 31.A focus on the ‘operate’ phase of regulation 24 32.Structure of this document 25 Chapter 1 Role clarity 28 33.Principles for role clarity 28 34.Objectives 28 35.Functions 28 36.Co-ordination 28 37.Objectives 30 38.Competing objectives 30 39.Functions 30 40.Conflicting functions 31 41.Competing functions 32 42.Regulators’ policy functions 33 43.Co-ordination 34 44.Objectives 35 45.Functions 35 46.Coordination 35 Chapter 2 Preventing undue influence and maintaining trust 37 47.Principles for the degree of independence 37 48.Independence 37 49.Maintaining trust 37 50.Defining undue influence 38 51.When is an independent regulator most appropriate? 40 1.there is a need for the regulator to be seen as independent, to maintain public confidence in the objectivity and impartiality of decisions; 40 52.both government and non-government entities are regulated under the same framework and competitive neutrality is therefore required; or 40 53.the decisions of the regulator can have a significant impact on particular interests and there is a need to protect its impartiality. 40 54.When is a Ministerial regulator more appropriate? 41 55.Allocating the power to make regulatory decisions 42 56.Maintaining trust in decision-making 43 57.Communication between ministers, ministries, and independent regulators 44 58.Independent regulatory decision-makers supported by Ministry staff 44 59.Framework agreement between independent regulatory decision-makers and Ministry 45 60.The terms of appointment for board members of independent regulators 46 61.Termination provisions for independent regulators 46 62.Pre-employment and post-separation activities of regulators 47 63.Independence 49 64.Ministerial regulators 49 65.Maintaining trust 49 Chapter 3 Decision-making and governing body structure
66.Principles for decision-making and governing body structure 51 67.Decision-making model 51 68.Relationship between the responsible the accountable political authority, governing body and the Chief Executive Officer 51 69.Membership of the governing body 51 70.Governance structures 52 71.Decision-making model 52 72.Relationship between the responsible Minister, governing body and CEO 55 73.Membership of the governing body 55 74.Stakeholder representation 55 75.Ministry representation on the governing board 56 76.Technical expertise or industry knowledge 56 77.Selection processes for board members 57 78.Decision-making model 57 79.Relationship between the responsible Minister, governing body and CEO 58 80.Membership of the governing body 58 Chapter 4 Accountability and transparency 60 81.Principles for accountability and transparency 60 82.Accountability and performance 60 83.Transparency 60 84.Review of decisions 60 85.Accountability 60 86.Clear expectations 61 87.Accountability to the legislature 61 88.Transparency of operational policies 62 89.Review of decisions 62 90.Accountability 64 91.Transparency 64 92.Review of decisions 64 Chapter 5 Engagement 66 93.Principles for engagement 66 94.Fit for purpose 66 95.Avoiding capture and conflicts of interest 66 96.The relationship between engagement and governance 66 97.Regular, purposeful and fit for purpose engagement 67 98.Advisory bodies 67 99.Engagement policies and mechanisms 67 100.Avoiding capture and conflicts of interest 68 101.Fit for purpose engagement 68 102.Avoiding capture and conflicts of interest 68 Chapter 6 Funding 70 103.Principles for funding 70 104.Supports outcomes efficiently 70 105.Regulatory cost recovery 70 106.Litigation and enforcement costs 70 107.Funding of external entities by a regulator 70 108.Supports outcomes efficiently 70 109.Regulatory cost recovery 72 110.Budget funding 72 111.Financial transparency 73 112.Costs of major and unanticipated court actions 73 113.Funding of external entities by regulators 73 114.Supports outcomes efficiently 75 115.Regulatory cost recovery 75 116.Litigation and enforcement costs 75 117.Funding of external entities by regulators 75 Chapter 7 Performance evaluation 77 118.Principles for performance evaluation 77 119.Identifying the scope 77 120.Developing indicators 77 121.Use of performance evaluation 77 122.Performance indicators 77 123.Identifying the scope 78 124.Developing indicators 78 125.Use of performance evaluation 78 References 81 Annex 1 Call for information for country examples of arrangements for the governance of regulators 85 Glossary 90 Tables Figure . Necessary elements of better regulatory outcomes 4 Figure . Governance arrangements of Regulators 20 Figure 3. Necessary elements of better regulatory outcomes 21 Table . OECD principles of good regulation 22 Figure . Regulatory integrity, independence and the institutional form 40 Table . Factors to consider in creating an independent and structurally separate regulatory body 41 Table . Factors to consider in creating a Ministerial based regulatory scheme 42 Table 1.1. Functions of regulators and co-operation 85 Table 2.1. Preventing undue influence 85 Table 3.1. Decision-making models and board membership 86 Table 4.1. Mechanisms to ensure accountability 86 Table 5.1. Forms of engagement 88 Table 6.1. Regulator funding arrangements 88 Table 7.1. Regulator performance evaluation 88 Figures Figure . Necessary elements of better regulatory outcomes 4 Figure . Governance arrangements of Regulators 20 Figure 3. Necessary elements of better regulatory outcomes 21 Table . OECD principles of good regulation 22 Figure . Regulatory integrity, independence and the institutional form 40 Table . Factors to consider in creating an independent and structurally separate regulatory body 41 Table . Factors to consider in creating a Ministerial based regulatory scheme 42 Table 1.1. Functions of regulators and co-operation 85 Table 2.1. Preventing undue influence 85 Table 3.1. Decision-making models and board membership 86 Table 4.1. Mechanisms to ensure accountability 86 Table 5.1. Forms of engagement 88 Table 6.1. Regulator funding arrangements 88 Table 7.1. Regulator performance evaluation 88 Directory: gov gov -> #1 a lifesafer of virginia inc gov -> Voluntary and mandatory surrenders 2013 gov -> City commission meeting commission chambers, city hall monday, september gov -> Secondary earthquake hazards gov -> Alabama alamerica Bank gov -> President mj saunders’ Self-Report to Board of Trustees on 2010-11 Goals August 29, 2011 gov -> President mj saunders’ Self-Report to Board of Trustees on 2010-11 Goals August 29, 2011 gov -> Gender and governance gov -> Tensions in Sino-Japanese Relations in 2012 and 2013: Plus ça change? Download 412.96 Kb. Share with your friends:
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