1. Public Confidence in Professional Regulation: Earn It, Keep It Council on Licensure, Enforcement and Regulation Toronto, Ontario June 7, 2012 Photo © Michael Haegele/Corbis © CLEAR 2012 Doing the Right Things Bruce G. Matthews Real Estate Council of Ontario

2. Council on Licensure, Enforcement and Regulation Toronto, Ontario June 7, 2012 Overview Why regulate? What are the “right things”? What aren’t the “right things”? Understanding and managing consumer expectations

3. Council on Licensure, Enforcement and Regulation Toronto, Ontario June 7, 2012 Why Regulate? Regulation as risk management and risk mitigation Risk to individuals and risk to the “public welfare” and “public interest” “Right touch regulation”

4. Council on Licensure, Enforcement and Regulation Toronto, Ontario June 7, 2012 Right Touch Regulation ‘Right touch regulation is based on a proper evaluation of risk, is proportionate and outcome focused; it creates a framework in which professionalism can flourish and organizations can be excellent. Excellence is the consistent performance of good practice combined with continuous improvement’ –Harry Cayton, Chief Executive, CHRE (UK)

5. Council on Licensure, Enforcement and Regulation Toronto, Ontario June 7, 2012 Right Touch Regulation Identify the problem first Assess and quantify the risks Focus on outcomes Use regulation only when necessary Keep it simple Be mindful of unintended consequences Review and be responsive to change

6. Council on Licensure, Enforcement and Regulation Toronto, Ontario June 7, 2012 The Right Touch Process Identify the problem –Does it represent a risk? Assess the risks –What are they and how significant are they? –Are they being managed now?

7. Council on Licensure, Enforcement and Regulation Toronto, Ontario June 7, 2012 The Right Touch Process Assess the scope of the problem –Local versus universal Is regulation an appropriate solution? Assess the potential for unintended consequences –Does the solution create its own risks?

8. Council on Licensure, Enforcement and Regulation Toronto, Ontario June 7, 2012 Laws of Right Touch Regulation 1.Apply the minimum regulatory force needed to achieve the desired outcome. 2.Use regulation as a last resort. 3.A list is not a solution.

9. Council on Licensure, Enforcement and Regulation Toronto, Ontario June 7, 2012 What are the “Right Things”? Setting standards –Qualification / Practice / Conduct Establishing processes Enforcing the law Communications

10. Council on Licensure, Enforcement and Regulation Toronto, Ontario June 7, 2012 Setting Standards of Qualification Knowledge, skill and judgment These are minimums required to permit unsupervised practice and use of restricted titles Setting the bar

11. Council on Licensure, Enforcement and Regulation Toronto, Ontario June 7, 2012 Entry to Practice Process Assessing knowledge, skill and judgment Issues of education, training and experience The regulator as gatekeeper

12. Council on Licensure, Enforcement and Regulation Toronto, Ontario June 7, 2012 Setting Standards of Practice Technical performance / execution of day to day responsibilities Controlled acts

13. Council on Licensure, Enforcement and Regulation Toronto, Ontario June 7, 2012 Setting Standards of Conduct Behaviours Code of Conduct / Code of Ethics Issues of fairness, honesty, integrity, professionalism

14. Council on Licensure, Enforcement and Regulation Toronto, Ontario June 7, 2012 Enforcing the Standards The regulator as shepherd Governance of practitioners Complaints / Discipline process Issues of openness and transparency Issues of fairness, due process, justice

15. Council on Licensure, Enforcement and Regulation Toronto, Ontario June 7, 2012 Dealing with Unlicensed Practice Dealing with charlatans, pretenders –Overt and covert Proactive and reactive approaches The regulator as a police force

16. Council on Licensure, Enforcement and Regulation Toronto, Ontario June 7, 2012 Communication The public can’t have confidence in a regulator that it doesn’t know exists Opportunity to be proactive Managing the message

17. Council on Licensure, Enforcement and Regulation Toronto, Ontario June 7, 2012 What aren’t the “Right Things”? Advocacy Anything perceived as being primarily in the interest of members Anything unrelated to risk management and risk mitigation Anything heavy-handed

18. Council on Licensure, Enforcement and Regulation Toronto, Ontario June 7, 2012 Consumer Expectations What does the public care about? Perception versus reality Accessibility Customer service

19. Council on Licensure, Enforcement and Regulation Toronto, Ontario June 7, 2012 Summary A philosophy of right touch regulation will facilitate public confidence Doing the “right things” is a package deal Understanding consumer expectations about the “what” and the “why” is key

20. Council on Licensure, Enforcement and Regulation Toronto, Ontario June 7, 2012 Speaker Contact Information Bruce G. Matthews Deputy Registrar, Regulatory Compliance Real Estate Council of Ontario 3300 Bloor Street West West Tower, Suite 1200 Toronto, ON M8X 2X2 T: 416-207-5149 E: bruce.matthews@reco.on.ca