| Growth-focused |
Economic objectives are given an appropriate weighting relative to other specified objectives |
- Identifying and justifying trade-offs between economic and other objectives is an explicit part of decision-making
- The need for firms to take long term investment decisions is taken into account in regulatory regimes where appropriate
- Open and competitive domestic and international markets including minimising barriers to, and maximising net benefit from, cross-border flows, are explicit objectives
|
| Proportional |
The burden of rules and their enforcement should be proportionate to the benefits that are expected to result |
- A risk-based, cost-benefit framework is in place for both rule making and enforcement
- There is an empirical foundation to regulatory judgements
|
| Flexible |
Regulated entities should have scope to adopt least cost and innovative approaches to meeting legal obligations. |
- The underlying regulatory approach is principles or performance-based, and policies and procedures are in place to ensure that it is administered flexibly
- Non-regulatory measures, including self-regulation, are used wherever possible
- Decisions are reassessed at regular intervals and when new information comes to hand
|
| Durable |
The regulatory system has the capacity to evolve to respond to changing circumstances |
- Feedback systems are in place to assess how the law is working in practice including well-developed performance measurement and clear reporting
- The regulatory regime is up-to-date with technological and market change, and evolving societal expectations
|
Certain
And
Predictable |
Regulated entities have certainty as to their legal obligations, and the regulatory regime provides predictability over time. |
- Safe harbours are available and/or regulated entities have access to authoritative advice
- Decision-making criteria are clear and provide certainty of process
- The need for firms to take long term investment decisions is taken into account in regulatory regimes where appropriate
- There is consistency between multiple regulatory regimes that impact on single regulated entities where appropriate
|
| Transparent and accountable |
Rules development, implementation and enforcement should be transparent. |
- Regulators must be able to justify decisions and be subject to public scrutiny
|
| Capable regulators |
The regulator has the people and systems necessary to operate an efficient and effective regulatory regime |
- Capacity assessments are undertaken at regular intervals and subject to independent input and/or review
|
![Regulatory Quality and Treasury - Introductory Briefing [Briefing to the Incoming Minister for Regulatory Reform 2011]](/mastheads/publications/briefings/reg-bim-2011.gif){kind=small}
