The new Regulators’ Code has been published early so that regulators can prepare for its formal introduction in spring 2014. Graham Russell explains why he thinks it will support a positive shift in the way regulation is delivered.
The Government is committed to reducing regulatory burdens and supporting business growth through the development of an open and constructive relationship between regulators and those they regulate.
In its 2012 autumn statement, the Government announced it would introduce a package of measures to improve the way regulation is delivered at the frontline.
The Better Regulation Delivery Office (BRDO) undertook a review of the Regulators’ Compliance Code. While it found that regulators had taken a positive approach, feedback from businesses was that delivery was inconsistent and the code had not changed regulatory culture and practice.
More was needed to increase visibility to businesses and regulated bodies, as well as front-line regulators, and to strengthen the focus on supporting business compliance and growth.
A simpler, clearer and more concise set of requirements was required — with enough flexibility to meet local needs and aspirations and opportunity for challenge when things are not right.
Regulators and businesses played a central role in the development of the new principles-based Regulators’ Code, identifying robust rules for those involved.
The code’s requirements are grouped into five areas of better regulatory activity. Regulators also have an obligation to ensure their approach to the code is transparent. It is not enough just to follow these requirements; building a better relationship with business requires openness and trust. For this reason, the code requires regulators to publish, in the form of an up-to-date set of easily accessible service standards, what those they regulate should expect from them.
The five areas under which the rules fall are:
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Supporting compliance and growth
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Engaging with those who are regulated
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Basing activities on risk
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Sharing information with regulators
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Providing guidance and advice.
The code enables regulators to design their service and enforcement policies in a manner that best suits the local needs of businesses and other regulated entities.
Government, businesses, regulated bodies and citizens can challenge regulators who they believe are not working to these rules or their own policies and standards.
Business Minister Michael Fallon has said of the code: “Regulators’ actions can impact directly upon a business’s ability to succeed. It’s essential that hard-pressed firms are not swamped with unnecessary bureaucracy, but are given pertinent advice and support.
“This shorter, clearer Regulators’ Code will increase confidence in our regulatory system, helping serve the twin purposes of protection and prosperity.”
Building on good practice
Building on the good work set out in the Regulators’ Compliance Code, the BRDO has sought to improve the approach to support regulators delivering good practice.
The new Regulators’ Code was developed with feedback from national regulators, local authorities, businesses and trade bodies.
By ensuring that regulators and business were central in the development of the new code, the BRDO has created a robust framework that works for the benefit of all.
The Regulators’ Code sets out a series of clear requirements, giving regulators and those they regulate a better understanding of the services that can be expected.
Health and safety professionals already following the Regulators’ Compliance Code will find that much of what they do meets the requirements of the new code, supporting their efforts to deliver the best service they can, while meeting the needs of their local area.
Encouraging open dialogue
Central to the delivery of the Regulators’ Code is accountability — the obligation to ensure all activities are transparent and open with published service standards setting out how the rules will be met.
The code encourages regulators to give businesses an active role in developing regulatory norms and practices. By doing so they gain a better understanding of the needs of those they regulate while assuring that necessary protections are maintained.
The requirement that regulators publish service standards means businesses will have easy access to information about what they and the regulator are expected to do come inspection.
Businesses that know exactly what is expected of them can more easily ensure they are compliant. As a result, health and safety authorities with clearly published service standards can expect improved compliance from businesses that know what they are doing.
Regulators and businesses with a better understanding of each other can expect to see improved compliance and improved standards of regulation respectively, meaning that health and safety professionals can get on with dealing with rogues while giving businesses the confidence to invest and grow.
Hearing what businesses need for growth and working to these aims must be accompanied by greater accountability. Regulators are required to publish service standards setting out how they will meet all the rules.
The Government is committed to making sure the Regulators’ Code is effective. Businesses, regulated bodies and citizens should challenge regulators who they believe are not acting in accordance with their published policies and standards. It is in the wider public interest that regulators are transparent and proportionate in their approaches to regulation. The Government will monitor published policies and standards of regulators subject to the Regulators’ Code, and will challenge regulators where there is evidence that policies and standards are not in line with the code or are not followed.
What the stakeholders think
The business world has a huge stake in how regulation in the UK is handled. For them, the Regulators’ Code is a leap forward in helping them comply and giving them the confidence to invest and grow.
Jerry Blackett, chief executive of the Birmingham Chamber of Commerce, said: “The code provides a basis in which inspectors can work with us to drive growth and to be open and clear about what they want from us.”
Lee Mansfield, environmental health team manager at North West Leicestershire District Council, said: “I, and my staff, are proud to work in a profession that protects local communities from harm and unfair or illegal trading practices.
“Supporting and advising compliant businesses and helping them to grow need not detract from or contradict our other public protection aims.
“As a profession we need to ensure that these requirements are embedded not only in our own published standards and policies on service delivery, but also in our frontline culture and practices as we work on the ground to deliver local services based on local decision-making.
“Regulators played an important role in the development of this code and we must now find a way to make it work for everyone.”
Invest and grow
The Regulators’ Code will support a positive shift in how regulation is delivered by setting clear expectations and promising open dialogue between regulators and businesses.
Ultimately, this will give businesses greater confidence to invest and grow and regulators clear direction through which they can work to ensure greater protections for their community.
Subject to Parliamentary approval, the Regulators’ Code is expected to be brought into statutory force (by a Statutory Instrument) in spring 2014.
The BRDO is creating a range of supporting resources, including guidance, tools, templates and case studies liaising with regulators and business representatives as necessary.
A quick guide to the regulators’ code |
What is it?
The Regulators’ Code is a statutory code of practice that replaces the Regulators’ Compliance Code. It is shorter, easier to follow and clarifies the requirements of regulators. It provides a clear framework for how regulators, ranging from national organisations to local authorities, should engage with those they regulate.
Why is there a new code?
The post implementation review of the Regulators’ Compliance Code found that although regulators had largely adopted its principles, its delivery was inconsistent and it had not changed regulatory culture and practice. The Regulators’ Code is designed to address these concerns. It is part of a package of measures to improve the relationship between regulators and those they are regulating and overcome barriers to growth, by improving the way regulation is delivered.
Who will need to consider the code?
Non-economic regulators, including local authorities and fire and rescue services, will need to regard the code when developing standards, policies or procedures that either guide their regulatory activities with businesses or apply to other regulators. However, the Government is currently working with stakeholders to decide whether new bodies or regulatory functions should be included (a guide to the regulators and regulatory functions covered by the code will be published alongside it.)
When will the code be introduced?
The code has been developed following consultation feedback from national regulators, local authorities, businesses and trade bodies. It has been published now to allow regulators the maximum time to reflect on its content and prepare for its introduction. It is anticipated that the code will be brought into statutory force (by a Statutory Instrument) in spring 2014.
How will the code be supported?
The code is a flexible, principles-based framework for regulatory delivery that leaves regulators free to develop their own service and enforcement policies to meet the needs of businesses (or other regulated entities in some cases). The BRDO is creating a range of supporting resources, including guidance, tools, templates and case studies, liaising with regulators and business representatives as necessary. |
Graham Russell is chief executive at the Better Regulation Delivery Office
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