As one of the main actors in regulatory policy, regulators have an important and increasingly complex role in the delivery of regulatory regimes and regulations. The governance arrangements for regulators are a key factor in a regulator’s ability to operate effectively to achieve the social, environmental and economic outcomes it is responsible for.
The OECD Best Practice Principles for Regulatory Policy: The Governance of Regulators detail the key principles for establishing and operating regulatory agencies. They also provide more detailed considerations that should be reflected upon to apply the principles to different cultural and political contexts. The seven governance principles for regulators are:
The 2012 Recommendation of the Council on Regulatory Policy and Governance recognises that an effective regulatory policy includes “a consistent policy covering the role of 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.”
The OECD Best Practice Principles for Regulatory Policy: The Governance of Regulators have an informal status of guidance approved by the Regulatory Policy Committee and OECD Network of Economic Regulators. They can be used by member and non-member countries to guide their reforms. The Principles will also be used by the Secretariat when reviewing regulatory policies in member and non-member countries as a set of evaluation criteria.
Countries and regulators are already building on the principles for their work. See, for example:
READ AND DOWNLOAD
Faisal Naru, Senior Economic Adviser, OECD