How are your new year’s resolutions going? Is better regulation a resolution?
If you are a regulator or perform regulatory functions as part of a larger entity, when was the last time your entity’s performance framework had a health check? If you answered, ‘over two years ago’, this article should prompt you to consider a check-up. Here’s why…
Better regulation and industry supervision continue to be a focus for governments. Recent Royal Commissions have identified much needed improvements to the way aged care, casinos, and banking, superannuation and financial services are regulated. The COVID-19 pandemic also continues to have its disruptive effect on supply chains and markets. These events have prompted governments to consider how best to achieve better regulation, including regulatory settings to support economic recovery from the impacts of COVID-19.
In the past year, governments have reviewed and refreshed guidance for regulators. The Commonwealth Government released its Regulator Performance Guide (the ‘Guide’) and Commonwealth Evaluation Policy; the South Australian Government commissioned and completed a major inquiry into modern regulation; and the Victorian Government revised its Statement of Expectations Framework for Regulators. The Victorian Commissioner for Better Regulation is also developing best practice guidance for regulators, which is expected to be published from early 2022.
Commonwealth Regulator Performance Guide
The Commonwealth’s Guide released in July 2021 replaces the 2014 Regulator Performance Framework. By adopting a principles-based approach to regulator performance, the Guide shifts performance expectations towards outcomes rather than activities. The three principles in the Guide are:
- Continuous improvement and building trust
- Risk based and data driven
- Collaboration and engagement.
The principles are intended to empower regulators to apply regulatory best practice in a way that is appropriate to their organisation and consistent with stakeholder expectations. The application of the Guide is broader than that of the 2014 Regulator Performance Framework. The Guide applies to Commonwealth entities that perform regulatory functions, for example, regulatory teams within departments, not just standalone regulators.
To support entities in implementing the Guide, the Commonwealth Deregulation Agenda website includes a library of practical case studies and other reference material.
Focus areas for enhancing regulatory performance
Commonwealth
Evaluation Policy
Designing and implementing a regulatory performance framework is not set and forget – it requires periodic review and evaluation. The Commonwealth Evaluation Policy and supporting Toolkit (RMG 130) released in December 2021 assists regulators to evaluate the effectiveness and efficiency of their regulatory performance. An evaluation may include considering whether:
- Regulatory structures and processes remain appropriately adapted to the industry
- Regulatory activities are aligned with relevant government policy and objectives
- Existing performance measures and targets remain relevant and appropriate
- Relevant and timely data is available to inform regulatory performance assessments.
Are you due for a regulatory health check?
When Proximity works with regulators and regulatory teams to review and uplift performance, we typically identify opportunities across five focus areas as illustrated above.
It is helpful to consider initiatives across all five focus areas for a balanced approach to designing or refreshing an entity’s regulatory strategy and implementation plan.
Proximity has assisted regulators and regulatory teams at all stages of the regulatory lifecycle from planning, consultation, implementation, review and improvement. We offer tailored support depending on your needs, such as:
- Policy design and delivery
- Strategic risk management and leveraging risk-based approaches to address priority issues
- Facilitating stakeholder consultation and workshops
- Identifying and implementing quick wins
- Planning change, including change management and implementation support
- Developing a balanced regulatory performance framework.
