Regulators’ Compliance Code Zoë Dayan Secondee Ministry of Economy, Lithuania

Why? To promote efficient and effective approaches to regulatory inspection and enforcement … to improve regulatory outcomes without unnecessary burdens

How? By embedding a risk-based, proportionate and targeted approach to regulatory inspection and enforcement. That means regulators and inspectors need a positive and proactive approach to compliance: – Help and encourage business to understand and meet regulatory requirements more easily – Respond proportionately to regulatory breaches

Is it law? Yes – must have regard to the Code and give it due weight when setting policies, standards and giving guidance …..but does not apply directly in individual cases

The Code (1) 1.Consider impact on economic progress – benefits should justify the costs and impose minimum burden to achieve the objectives. 2.Allocate resources on the basis of risk assessment to outcomes 3.Provide information, advice and guidance to help understanding and compliance.

The Code (2) Inspections should be decided by risk assessment Balance the need for information with its cost Reward compliance Regulators are accountable – (while independent).

How was it implemented? From the centre Workshops with all regulators Support and training Came into force after 2 years development Review after 1-3years Regulators Statement of how they take account of the Code Write into their policies (principles, actions, measures) Training for all inspectors Annual report (to public, ministry and Parliament)

And now? Code is being updated (5yrs old) NEW! What have we learnt? Risk-based approach generally well used Some fantastic advice and guidance External certification not taken into account Patchy consultation about changes Very weak appeals processes

Clearer expectations and dialogue Particularly: Support growth by minimising costs of compliance Consult on impact of changes to policies/practice/service standards Be clear about why something is non-compliant and what is needed Clear mechanism for reasonable appeal Take external verification into account Share information Provide helpful, assured guidance and advice, distinguishing legal reqts from good practice