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.”
To assist countries in translating this recommendation into practice, the OECD developed Best Practice Principles for the Governance of Regulators that reflects public consultation and key inputs from OECD member and non-member countries. The Principles address the different facets of a regulator’s governance and identify the best or good practices for:
- Role clarity
- Preventing undue influence and maintaining trust
- Decision-making and governing body structure for independent regulators
- Accountability and transparency
- Performance evaluation
The Principles have an informal non-binding status of guidance approved at the Committee level. They complement the 2012 Recommendation of the Council on Regulatory Policy and Governance and can be used by member and non-member countries to guide their reforms. For example, in June 2014, New Zealand Productivity Commission completed an assessment of regulatory institutions and practices that builds extensively on the Best Practice Principles for the Governance of Regulators. In June 2014, the Australian National Audit Office completed a Best Practice Guide: Administering Regulation: Achieving the Right Balance.
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.
Download the Best Practice Principles for the Governance of Regulators (forthcoming).
For more information, please contact Faisal Naru.
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