Tuesday, 5 November 2024
Best conduct of business regulator
The conduct of all firms, including all those authorised and subject to prudential supervision and their dealings with ordinary retail consumers, in wholesale markets and market conduct in general falls under the purview of the conduct of business regulator. The main idea behind its existence is to be able to ensure confidence in financial services and markets, with a particular focus on protecting consumers and ensuring market integrity. Apart from being transparent and independent, the composition of the regulatory board - industry players being a part of the board- play a major role in measuring its effectiveness.
| Evaluating Dimension | Weightage (%) | |
|---|---|---|
| 1. | Transparency | 20 |
| Clarity in the agency's mandates, objectives, rules responsibilities and procedures | ||
| Appointment procedures of senior staff of the agency. | ||
| Strength of Accountability mechanisms | ||
| 2. | Independence and governance | 20 |
| Method of appointment of the managing board | ||
| Method of appointment of governor | ||
| Immunities if any enjoyed by the governor and/or board members | ||
| 3. | Conflict of interest Vs. closeness to the industry | 20 |
| 4. | Presence of an Ombudsman in the system (not necessarily in this institution) | 15 |
| Track record in resolution of issues | ||
| 5. | Right to punitive enforceable action | 25 |
| Exists | ||
| Does not exist | ||
| Exercised in the past 3 years? | ||
| Final Score | 100 | |
As we continue to develop and refine our scorecards, we hope to present a better and more accurate instrument to gauge the performance of regulators over a certain time period against that of their peers and competitors. Ultimately, the Regulation Awards is intended not only as an awards programme, but also as a reflective opportunity. In that sense, the programme - and the scorecard - have been developed to enable regulators to grow, evolve and expand.