1 Introduction to regulation and public policy

Question 1

What is the problem which regulation solves?

Answer 1

The problem – business is incentivised to minimise cost and there is an inherent risk that not all will invest sufficiently in safe systems of work.
- human greed that comes with capitalism and competitiveness.
- employees should be safe at work - provide protection to others (and the environment).

Question 2

What is the challenge for policy makers?

Answer 2

how can we most effectively achieve the policy objective whilst balancing the reasonable interests of employees and employers?

Question 3

Creating regulation over statute?

Answer 3

Can build on regulations easily responding to new risks and problems - law would mean in private legal actions rather than regulatory bodies. Would that provide adequate incentives for employers to comply with obligations? Is it realistic to expect legislation to provide clear legal obligations in a diverse economy which is constantly evolving?

Accumulating experience and enabling continuous improvement of regulatory framework (working with Government)

Question 4

Why can regulation can be so effective in delivering policy objectives?

Answer 4

Can provide a system for enforcement which incentivises compliance (and is not dependent on individuals having to take legal action).
Provides guidance (and therefore certainty) as to legal obligations

Question 5

Health and Safety Executive

Answer 5

Example:
Health and Safety Executive
Established in 1975 (Health and Safety at Work Act 1974)
National regulator for workplace health and safety
Targeted inspections and investigations
Enforcement action (including Criminal Law)
Issues guidance and Codes of Conduct – ensuring legal obligations are clear and up to date

Question 6

Generally what legal powers do regulatory bodies have?

Answer 6

Authorisation
Supervision
Enforcement
Creating new legal obligations

Question 7

How do we decide what public policy objectives should be?

Answer 7

• The role of Government and Parliament
• The role of political parties
• Organisations which regularly contribute to public policy debates – statutory bodies, trade associations, “think tanks”, charities, academics, business
• In a democracy we can all contribute as individuals
• societal past mistakes
• Differing beliefs, values and priorities
• Understanding the problem to be addressed
• Understanding how effective proposed regulatory interventions will be
• Understanding the costs to business (including cost of lost opportunities)
• Cost/benefit analysis
• The importance of consultation and gathering of evidence
• Lessons from history…..

Question 8

The risks of too much regulation?

Answer 8

• employers not making enough profit
• deter investment, as businesses face higher operational costs and complexity
• Costs to business
• Constraining business innovation
• Too much “red tape”
• Business wants freedoms (and dislike unnecessary constraints on freedom, extra costs and therefore profits)

Question 9

what is the UK regulatory landscape today

Answer 9

Impact of EU membership
Post Brexit – more freedom as to approach we take to regulatory policy
Increasing potential for political disagreement
Approx 90 regulators

Question 10

questions consumers will ask in terms of regulation promises

Answer 10

The food we buy - Can we be confident it is safe to eat?

Can we have faith in the professions we rely on?
Solicitors/barristers/ healthcare professionals and doctors

Medicines & Healthcare products Regulatory Agency
Drugs and vaccines - How can we be comfortable that the drugs we are offered are safe and effective?

Question 11

What does the FCA, PRA and ICO stand for? define them.

Answer 11

FCA - financial conduct authority
maintains the integrity of the financial markets in the United Kingdom. regulate conduct related to the marketing of financial products

PRA - PRUDENTIAL REGULATION authority
(part of the Bank of England) Firms required to hold enough capital to meet liabilities.

ICO - information commissioner’s office
protects use of our data and contracts - Lawfulness, fairness and transparency

Question 12

Careers in regulatory law?

Answer 12

Government Legal Service
In house legal teams within regulatory bodies
In house legal teams within regulated businesses
Law firms

Question 13

ROLE OF FCA

Answer 13

ROLE OF THE FCA
- The Financial Conduct Authority is a financial regulatory body in the United Kingdom which operates independently of the UK Government and is financed by charging fees to members of the financial services industry.
- The FCA regulates financial firms providing services to consumers and maintains the integrity of the financial markets in the United Kingdom

The authority has significant powers, including the power to regulate conduct related to the marketing of financial products. It is able to specify minimum standards and to place requirements on products.[17]It has the power to investigate organisations and individuals.[18]In addition, the FCA is able to ban financial products for up to a year while considering an indefinite ban. It has the power to instruct firms to immediately retract or modify promotions which it finds to be misleading and to publish such decisions.[19]
Furthermore, the FCA is able to freeze assets of individuals or organisations under investigation, regardless of whether they are innocent or guilty.[20][21]: 143 The authority has been responsible for regulating the consumer credit industry since 1 April 2014, taking over the role from theOffice of Fair Trading.

Works alongside PRA