The strengths and weaknesses of self regulation

1
The strengths and weaknesses of self regulation

• Dr Jon Bell
• Formerly Chief Executive
• UK Food Standards Agency

2
The case for and against command and control
regulation (1)

• Define required behaviour
• Set standards
• Clearly set out offences and penalties

3
The case for and against command and control
regulation (2)

• Blunt instrument
• Can be costly and act as a brake on innovation
• Always follows new activities, never precedes
  them
• Only sets minimum standards

4
Aims of self regulation

• Ensure a properly functioning market
• Ensure a responsible industry
• Ensure a commitment to published standards
• Effective action in the event of a breach
• Easy and low cost to administer
• Responsive to change

5
Advantages and disadvantages

• Possible advantages
• Driven by those being regulated
• Embeds responsibility for compliance
• Flexible
• Low cost

6
Advantages and disadvantages

• Possible disadvantages
• Conflicts of interest
• Lack of confidence in the process
• Weak sanctions
• Lack of transparency
• Narrowness of interpretation of the rules

7
Drivers (1)

• Industry
• Threat of command and control regulation
• Name and shame by the authorities
• Desire to raise standards and confidence
• Desire to prevent damage by rogue operators

8
Drivers (2)

• Government
• Desire to keep costs down
• Enables minimal government interference
• Maximises flexibility
• Strengthens corporate responsibility

9
Suitability for different sectors

• Required standards of behaviour are well
  understood
• No risk of serious or widespread harm
• Industry cohesiveness and maturity
• Competitive market

10
Ways of avoiding or reducing the disadvantages (1)

• Involve outside parties
• External policing
• External auditing

11
Ways of avoiding or reducing disadvantages (2)

• Clear and transparent rules
• Allow group action by consumer bodies
• Clear appeals procedures

12
Examples of sectors in the UK which have tried
self regulation

• Successfully
• Advertising
• The medical profession
• The press
• Unsuccessfully
• The police
• Lawyers
• Gas safety

13
Perceptions about self regulation

• The public
• Politicians
• Industry

14
Issues requiring particular attention

• Funding
• Expertise and background of independants
• Transparency
• Speed of response
• Appeals system
• Mandatory participation?

15
Conclusions

• Workable alternative to command and control
  regulations in appropriate circumstances
• Not suitable for all sectors
• Perceptions are all important