5 Elements for an Effective Regulator

The aim of a regulator is to ensure that the sector is working properly and that consumer and other stakeholder interests are protected in a fair and balanced manner. An effective regulator is the vehicle to ensure credible market entry, as well as compliance with and enforcement of existing regulations. To achieve this, governments must create and maintain an environment conducive to good governance and regulatory success. Regulatory procedures must be transparent, accountable and predictable, and ensure integrity. However, the mere fact that these factors are in place, at least on paper, does not necessarily guarantee success. As shown throughout this module, regulators do not work in a vacuum but within the context of a legal tradition, a sector and a country. Priorities must be set, the necessary statutory framework in which the regulator will operate must be created, procedures put in place, and relationships between stakeholders established. The way in which these different processes work together and are respected within a general context of good governance will determine the effectiveness of the regulator and ultimately the success of the market.