Regulators’ Code

July 2014

Regulators’ Code

• A statutory Code

• Came into effect in April 2014, replacing the Regulators’ Compliance Code

• All local authorities are in scope

• Regulatory areas in scope are defined by Order

• Requires local authorities to ensure that their staff understand the Code and the statutory principles of good regulation

Statutory Principles of Good Regulation

• Regulatory activities should be carried out in a way that is:

• Proportionate• Consistent • Targeted • Transparent• Accountable

• The principles apply at all levels:

• Agreeing policies, processes and practices• The decisions officers make on a day-to-day basis

Regulators’ Code

Growth

Dialogue

Risk

Data

Guidance

Transparency

Growth

Scope

• Regulatory functions are specified in terms of specific statutes

• Broadly, the following local authority areas of responsibility are in scope:

• Environmental health• Fire safety• Licensing• Trading standards

• And, the following aren’t:

• Building control• Planning

Growth

“Regulators should carry out their activities in a way that supports those they regulate to comply and grow”

•Avoid imposing unnecessary burdens• Assess if outcomes could be achieved by less burdensome means• Choose proportionate approaches based on business factors• When reviewing policies consider how they might support or

enable economic growth• Ensure officers are competent to support those they regulate• Ensure officers understand the principles of good regulation, the

Code and the regulator’s policies and procedures and deliver activities in accordance with them

Dialogue

“Regulators should provide simple and straightforward ways to engage with those they regulate and hear their views”

•Have mechanisms to engage those they regulate, citizens and others to offer views and contribute to the development of policy and service standards• Consider the impact and engage with business representatives

before changing policy or service standards• Clearly explain reasons for decisions and provide opportunity for

dialogue• Provide impartial and clearly explained route to appeal• Provide clearly explained complaints processes• Have a range of feedback mechanisms to enable and invite

customer feedback

What does the Code mean by ‘Complaints’ v ‘Appeals’?

‘Complaints’

• Dissatisfaction with practices, processes or individual conduct • Complainant seeking:

• Apology• Compensation• Change to practices or processes

‘Appeals’

• Dissatisfaction with individual decision/ action/ requirements• The regulator’s decision/ action may have commercial effect• ‘Statutory’ right to appeal may exist• Complainant seeking change to decision/ action/ requirements

Risk

“Regulators should base their regulatory activities on risk”

• Take an evidence-based approach to determining priority risks and allocate resources where they would be most effective in addressing those risks

• Consider risk at every stage of decision-making• Have mechanisms in place to consult on the design of risk

assessment frameworks• In assessing risk should recognise the compliance record of those

they regulate• Review the effectiveness of chosen activities in delivering desired

outcomes

Data

“Regulators should share information about compliance and risk”

•Collectively follow the principle of “collect once, use many times” when requesting information from those they regulate•When the law allows, regulators should agree secure mechanisms to share information about businesses to help target resources and minimise duplication

Guidance

“Regulators should ensure clear information, guidance and advice is available to help those they regulate to meet their responsibilities to comply”

•Provide advice and guidance that is focussed on assisting those they regulate to understand and meet their responsibilities•Distinguish between legal requirements and good practice•Consider the impact of the advice or guidance so it does not impose unnecessary burdens•Publish information and guidance in a clear, concise format•Consult those they regulate to ensure guidance meets their needs•Create an environment of confidence so businesses feel able to seek advice without fear of triggering enforcement action•Have mechanisms to work with other regulators to give consistent advice

Information, Guidance and Advice

• ‘Information’ – knowledge communicated about facts

• ‘Guidance’ – an interpretation of regulations or regulatory requirements.

• ‘Advice’ – specific recommendation(s) given in a particular context or in the light of a particular set of circumstances.

Transparency

“Regulators should ensure that their approach to their regulatory activities is transparent”

• Publish a set of clear service standards

• These should include clear information on:

• How they can be contacted• Their approach to providing information, guidance and advice• Their approach to conducting checks on compliance, including

details of their risk assessment framework(s)• Their enforcement policy• Their fees and charges• How to comment or complain, and routes to appeal

Further Information

Further information and resources are available on the local authority pages at:

www.regulatorsdevelopment.info/grip/regulatorscode

Email: regulatorscode@brdo.bis.gsi.gov.uk

Tel: 0121 345 1200