OVERVIEW OF GUIDELINES
The guidance proposes some basic and necessary institutional measures as well as more aspirational steps that regulatory agencies can take towards bolstering a culture of independence. The guidance covers issues linked to both external and internal governance of regulatory agencies, structured according to the following five dimensions:
- Role clarity and responsibility: legislation should clearly describe the regulator’s objectives and relation with other government actors. Regulators should also be proactive in reaching out to other government actors, using their strategic foresight capacity and educating stakeholders on their role.
- Transparency and accountability: regulators should provide timely and relevant information on performance. There should be appropriate channels for complaints and appeals against their decisions. Regulators may aspire to implementing ethics code and transparency and integrity principles.
- Financial independence: there should be clear, established, consistent and transparent processes for determining funding needs and how funds are decided. Regulators should have appropriate and accountable autonomy in spending their budget.
- Independence of leadership: nomination and appointment of the regulator’s leadership should be based on transparent and accountable processes. Clear conflict of interest rules should be in place to support independent behaviour while in employment and upon exiting.
- Staff behaviour: recruitment should be based on competence and ethics. Staff should have incentives and freedom of action to carry out their duties. Regulators may aspire to be autonomous in setting salaries and implement proportionate pre- and post-employment restrictions.