The Regulatory Reform Group (RRG), a caucus of Conservative lawmakers pushing for improved accountability of regulators, has published its first report – the recommendations of which are supported by the London Market Group (LMG).
In its The Purpose of Regulation report, the RRG recommends the establishment of a clear definition of a regulator, including the listing of all regulatory bodies and their respective scope and responsibilities. The goal of this recommendation is to enable better scrutiny amid what was described as systemic regulatory underperformance.
The RRG is also pushing for the formation of a joint committee for oversight of regulators that will consist of members from both Houses of Parliament; the creation of an office for oversight of regulators in the Cabinet Office; the introduction of a new accountability framework; the adoption of a formal mechanism to facilitate an open, two-way dialogue between regulators and the government; and the implementation of an outcomes-based approach to future regulation.
“We are delighted to be supporting the efforts of the Regulatory Reform Group,” said LMG chief executive Caroline Wagstaff (pictured), whose camp provided input for the report. “We have been advocating strongly and consistently for greater accountability of regulators through our ongoing work on the Financial Services and Markets Bill.
“We believe that the Treasury should be setting out specific metrics to hold them accountable, that the regulators should be reporting consistently, and that Parliament should be marking their homework. All of this feeds into the wider non-sectoral campaign being run by the parliamentary Regulatory Reform Group, and the report’s inclusion of a case study on the UK ILS (insurance-linked securities) market highlights what happens when rules and behaviours are not in sync.”
Chaired by Bim Afolami, the RRG is made up of members Sir Robert Buckland, Alun Cairns, Vicky Ford, Richard Fuller, Mark Garnier, Stephen Hammond, Lord Andrew Tyrie, and James Wild.
