12 Qualities of a highly effective Regulator

12 Qualities of a highly effective Regulator.

1. Open and accessible – always available to have high level discussions of issues and proposals.

1. Competent and efficient with good internal control systems of operation.

1. Acts swiftly without bureaucracy and red tape.

1. Writes legislation rather than merely implement legislation written by government.

1. Reasonably strict and not a push over.

1. Proactive rather than reactive.

1. Pragmatic and practical.

1. Satisfies business needs, puts in place legislation and regulation that is in line with business needs.

1. Takes care of the expectation of consumers.

1. Self-funded and not over reliant on government funding.

1. Accountable to people, to government and capable of being sued for its actions.

1. Transparent in the way regulation is written.

Obtaining regulatory approvals for your firm’s proposals

You may need to apply to the regulator for approval such as product approvals, scheme approval, concession or rule waiver, additional permission/licence etc.

You should first prepare and lay out exactly what you want from the approval and how it would benefit your business. Then prepare a project schedule of steps to be taken and time scale for achieving your objective.

Arrange to meet your advisers such as compliance consultants, lawyers and accountants and get their input on what should be included in your application.

Gather all the required documentations such as operational manuals, product prospectus, financials, business plan etc.  Where necessary update the documents with any changes that have recently occurred in the business, industry or legislation.

Your application should address issues such as systems and control, risk management, business strategy, financial strategy, governance, customer issues.  Be mindful not to oversupply information that would cause deviation from your objective in the application. Try to anticipate questions that the regulator would ask and why you should have the approval. Think also in terms of the impact the approval would have on your clients, whether they would be adversely affected by the application. Would the approval affect your capital requirements and resources? Will it expose your firm to additional risk such as operational, market and credit risk?

Submit the application preferably by courier ensuring that all enclosures are intact and payment by cheque where required is enclosed. Make it easy for the documentation to be perused.

Once the application has been submitted, you would have a case officer in the regulator who would be assigned to look at your application.  The case officer may also be required to prepare a case or recommendation paper to a committee or group of senior officials to decide whether or not the application should be granted. The case officer would do the bulk of the work, so when the case officer contacts you to acknowledge receipt of your application or to request further details, this is a golden opportunity to establish and nurture the relationship, spend extra time with the officer to ensure that they understand the importance of the application to your business.

You won’t get what you don’t ask for so if you want the application processed in a particular way or within a set time scale, ask, even if it may seem unachievable.  There may be time sensitivity or time criticalness issues or you may want to launch a product within certain period, make it known if the matter is urgent. The case officer would do the leg work on your behalf, be direct and make sure there is no room for misinterpretation or ambiguity with respect to your requirements. It is important to remain courteous and friendly yet professional.

Contact your case officer frequently for an update on your application. Don’t just assume that all in on course. If you are asked for additional information to buttress your case, think carefully about how to respond. Highlight why the application will help your business and how it would benefit your clients and what burden your company would face if the application is rejected. Be clear and succinct about how the application fits in to your firm’s business strategy. State also how you have considered and prepared against any potential risk to your business.  Respond in a timely manner to request for additional details and chase to find out if what you sent has addressed any concerns and whether any additional details is required.

When the approval is issued verbally, thank the regulator and await written response as soon as possible and acknowledge receipt of the decision and thank them for their prompt attention to your matter. Give written feedback if required concerning the level of service, you received.