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Regulating the Regulators

New Compliance Code of Practice

A new code is set to offer comprehensive guidelines to help regulators improve their practices and results.

The Regulators’ Compliance Code, which has been issued by the Department for Business Enterprise and Regulatory Reform (BERR), comes into force in April.

Its purpose is to help regulators, such as fire authorities, environmental health, trading standards and building control, improve regulatory outcomes without impeding economic progress and by supporting them to make compliance easier.

Government minister Pat McFadden states in the recently issued compliance code document that the code’s aim is to “embed a risk-based, proportionate and targeted approach to regulatory inspection and enforcement among the regulators it applies to.”

The code sets out seven guiding principles for regulators relating to economic progress, risk assessment, advice and guidance, inspections, information requirements, compliance and enforcement actions and accountability.

In short, it advises that regulators operate on the basis of supporting economic progress, only intervening when there is a clear case for protection. Intervention should be informed by comprehensive risk assessment methods that assist regulators to apply resources where they are most needed.

Regulators should support regulated entities to achieve compliance by offering cheap and easily-accessible information in a wide range of formats.

Inspections should be justified and targeted on the basis of risk assessment. When more than one regulator investigates a regulated entity, joint or coordinated inspections and data sharing should be conducted to minimise the burden upon it.

Regulators need to be mindful of the costs to regulated entities of requests for information and carry out risk assessment to determine the necessity for doing so in all cases.

They should also work positively and proactively to achieve compliance, cutting the need for reactive enforcement actions. At the same time, they should be able to target those who deliberately or persistently breach the law with swift, proportionate and meaningful sanctions.

Finally, the code also advocates that regulators be accountable for the efficiency and effectiveness of their activities while remaining independent in the decisions they take.

Information service

Regulators' Compliance Code
Statutory Code of Practice for Regulators

BERR website Department for Business Enterprise and Regulatory Reform - further information on the Statutory Regulators' Compliance Code.