In October 2014, the Government introduced the Framework to provide a common set of performance measures for increased accountability and greater transparency in the way regulators perform their role.
The Framework requires regulators to look at how they operate and the regulatory impact they create when administering regulation. It also helps to drive cultural change in regulators to encourage them to adopt appropriate regulatory risk-based approaches to their role.
The Framework has identified six outcomes-based Key Performance Indicators (KPIs) to assess the performance of regulators:
KPI 1 – Regulators do not unnecessarily impede the efficient operation of regulated entities
KPI 2 – Communication with regulated entities is clear, targeted, and effective
KPI 3 – Actions undertaken by regulators are proportionate to the regulatory risk being managed
KPI 4 – Compliance and monitoring approaches are streamlined and coordinated
KPI 5 – Regulators are open and transparent in their dealings with regulated entities
KPI 6 – Regulators actively contribute to the continuous improvement of regulatory frameworks
Each regulator is required to develop output or activity-based evidence metrics against the KPIs. These are used to assess their performance in the annual self-assessments and the periodic external review processes.
All regulators are required to carry out self-assessments of their performance against their agreed evidence metrics. Self-assessments are approved by the regulator's Accountable Authority under the PGPA Act, and validated by approved stakeholder consultation mechanisms.