Seminar: Understanding the role of regulation for your business

Topic Number: 7

Principles of Business

2

Overview

Regulation is becoming an increasingly important consideration within the business environment. In this seminar, we will consider the role and impact regulation has on your business.

You will determine the key regulatory bodies that may be interested in your business and understand the key principles that they adopt. This will enable you to develop a robust understanding of the types of things you should consider within your business and governance structure. We will look into a number of the regulatory consequences of not following the stipulated requirements on your business.

Finally we will look the development of health and safety policy for your business.

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Learning outcomes of this seminar

• Determine and describe the different types of regulatory bodies that may be interested in your business

• Understand and articulate the key regulatory principles of those bodies and be able to apply these to a particular context

• Demonstrate knowledge of the consequences of not adhering to regulatory requirements

• Determine and apply the key principles of different international regulations in the context of your own business

Agenda for this seminar

Understand the key regulatory principles of those bodies and describe how you would intend on adhering to the regulations

Consider what are the regulatory consequences for your business of not meeting the stipulated regulatory requirements

Write a Health and Safety Policy for your business

Determine the key industry regulatory bodies that may be interested in your business

Structure for the session

You will have 15 minutes to

discuss each question

We will have a de-brief at the end of each 15 minutes to hear your thoughts on each area

Feel free to ask questions but please do not have separate conversations ‘we are all in

this together’!

A relationship between regulation and trust?

View video: https://www.youtube.com/watch?v=4mh0E6JA2aA#t=164

Overview

Source: Edelman, 2014

Overview

Source: Edelman, 2014

Overview

Source: Edelman, 2014

Determine the key industry regulatory bodies that may be interested in your

business

Understanding what regulations to adhere to

EU & National Laws

Industry Agnostice.g. taxation & health

and safety

Industry Specifice.g. FCA and Food Standards Agency

Your core industry/s

ervices

Ancillary Services

Supporting Activities

Consider:

For example

Your core industry/s

ervices

Ancillary Services

Supporting Activities

If you offered a package bank account you would need to consider the following regulators:

Financial product

elements e.g. current account

Offer 241 on dinners at top restaurants

Offer 241 on dinners at top restaurants

Role of Regulations

Advertising ProductConsumer Protection

+ =

Our mission is to ensure that advertising

in all media is legal, decent, honest and

truthful, to the benefit of consumers, business

and society.

We work with local authorities to enforce

food safety regulations and…check that the requirements of the

regulations are being met.

We are responsible for considering the

fairness of terms in many types of financial

services contracts, including: consumer

credit, mortgages (etc)

Understand the key regulatory principles of those bodies and describe how you would intend on adhering to the

regulations

Usually all regulators have a common goal…

• Protecting stakeholders• Fostering competition• Encouraging innovation and economic

development• Stabilizing and stimulating the economy

To the letter vs Outcome based regulation

In light of the issues faced through the credit crunch and recession from 2008, we are seeing a new regulatory philosophy with a move from ‘to the

letter’ regulation to an outcome based approach.

FCA Principles

Determine the role of the ICO and its impact on your

business

The Information Commissioner’s office (ICO) is the UK’s independent public authority set up to uphold information rights. We do this by promoting good practice, ruling on

complaints, providing information to individuals and organisations and taking appropriate action when the law

is broken.

Role of the ICO

The ICO enforces and oversees the following legislation:

• Data Protection Act 1998• Freedom of Information Act 2000• Privacy and Electronic

Communications Regulations 2003

• Environmental Information Regulations 2004

• INSPIRE Regulations 2009

What action can they take?

• Criminal prosecution • Non-criminal enforcement • Audit. • The Information Commissioner

also has the power to serve a monetary penalty notice on a data controller.

Your obligations in different industries

Source: ICO, 2014

Type of breaches to look out for

Source: ICO, 2014

Sectors with most breaches

Source: ICO, 2014

Regulatory Powers - ICO

• Serve information notices requiring organisations to provide the Information Commissioner’s Office with specified information within a certain time period;

• Issue undertakings committing an organisation to a particular course of action in order to improve its compliance;

• Serve enforcement notices and ‘stop now’ orders where there has been a breach, requiring organisations to take (or refrain from taking) specified steps in order to ensure they comply with the law;

• Conduct consensual assessments (audits) to check organisations are complying;

• Serve assessment notices to conduct compulsory audits to assess whether organisations processing of personal data follows good practice (data protection only);

• Issue monetary penalty notices, requiring organisations to pay up to £500,000 for serious breaches of the Data Protection Act occurring on or after 6 April 2010, or serious breaches of the Privacy and Electronic Communications Regulations occurring on or after 26 May 2011;

• Prosecute those who commit criminal offences under the Act; and• Report to Parliament on data protection issues of concern.

Write a Health and Safety Policy for your

business

Purpose of the HSE

Under the Health and Safety at Work etc. Act 1974 (as amended) (HSWA) HSE has been set up in order to support the Government’s strategic aims and current targets for health and safety at work. Its main aim is to secure the health, safety and welfare of people at work and protect others from risks to health and safety from work activity.

Its main statutory duties are to:• Propose and set necessary standards for health and safety

performance;• • secure compliance with those standards;• • carry out research and publish the results and provide an

information and advisory• service;• • provide a Minister of the Crown on request with information and

expert advice.

HSE’s mission is:The prevention of death, injury and ill health to those at work and those affected by work activities.

Write a health and safety policy for your business

http://www.hse.gov.uk/simple-health-safety/write.htm

3 easy steps to writing a policy

Step 2: Research risks documents

Step 1: Download the template

Step 3: Gather holistic view from your group

http://www.hse.gov.uk/simple-health-safety/write.htm

End of Seminar

Note: This recording is for your personal use only and not for further distribution or wider review.

© Pearson College 2013