1. WHAT IT TAKES TO CREATE WORLD CLASS REGULATORS Nick Malyshev Head of the Regulatory Policy Division OECD

2. OECD aims to help countries achieve sustainable improvements to regulatory processes and outcomes. OECD works both upstream (COG; oversight bodies, parliaments) and downstream (regulators, enforcement and inspections, local authorities) – Regulatory Policy Committee – Network of Economic Regulators In addition to improving economic outcomes, regulatory policy is responsible for some less tangible but equally critical public governance outcomes. OECD work on regulatory design and delivery

3. Elements of better regulatory outcomes

4. The Governance of Regulators – Scope External Governance (Links between the COG and the regulator) Internal Governance (looking into the regulator) The roles, relationships and distribution of powers and responsibilities between the Centre of Government (legislature, Cabinet and responsible Minister) and the regulator. The regulator’s organisational structures, standards of behaviour and roles and responsibilities, compliance and accountability measures, oversight of business processes, financial reporting and performance management.

5. The Governance of Regulators - Elements Role ClarityIndependence Decision-making and governing body structure Accountability, Performance and Transparency EngagementFunding

6. Extensive academic body of work Limited explicit policies in OECD countries Initial discussion in the NER (Nov. 2012) Public consultation and further develop Discuss in RPC/NER (April 2013) Welcome participation of G20 regulators in the NER Steps developing the Principles for the Governance of Regulators

7. Golden Principles or Key Challenges? Help regulators to perform better or strengthen regulatory arrangements The link between independence and accountability Relatively little explicit evidence about what matters most in improving performance Uncertainty about the institutional forms that are suited for improving performance Political economy factors are (usually) more imperative to success than strictly technical considerations Considerations