Regulator performance framework
The Australian government has established the Regulator Performance Framework to assess regulators’ performance when interacting with business, the community and individuals while carrying out their functions. The Framework principally relates to regulatory burden arising from the administration of regulation, rather than the process for and outcomes of regulatory policy making.
The Framework came into effect on 1 July 2015 and establishes six Key Performance Indicators (KPIs) including:
- Regulators do not unnecessarily impede the efficient operation of regulated entities.
- Communication with regulated entities is clear, targeted and effective.
- Actions undertaken by regulators are proportionate to the regulatory risk being managed.
- Compliance and monitoring approaches are streamlined and coordinated.
- Regulators are open and transparent in their dealings with regulated entities.
- Regulators actively contribute to the continuous improvement of regulatory frameworks.
More information can be found at http://www.cuttingredtape.gov.au/resources/rpf
In accordance with the Framework, all regulators are to undertake an annual self-assessment of their performance against each KPI. APRA’s self-assessment includes quantitative and qualitative information as well as examples that outline specific actions taken during the financial year that relate to APRA’s performance against each KPI. APRA’s self-assessment is externally validated through the approved stakeholder consultation mechanism with feedback received from industry associations that participate in the process. APRA’s self-assessments for the 2015/16 and 2016/17 periods are available below.
Regulators must establish metrics to support assessment against the Framework.