You were critical of several areas of regulation, with HMRC leading the pack and AML, Companies House, and data protection close behind. There was little positive said, although one member noted that regulators are increasingly including helpful examples in their guidance. As regards ICAEW, the need for exacting standards was understood, but there were some concerns, including that there is an unequal playing field because "accountants" who are not members of a professional body are not subject to much, if any, regulation.
Most of the criticisms seem well founded, but what particularly struck home was how corrosive the cumulative impact of regulation can be when it is poorly thought out or implemented, especially when there are overlapping areas with little co-ordination between the regulators. The overall burden is causing some of you to cease practice altogether and it seems some businesses you advise feel similarly (eg, not exporting due to red tape).
The feedback was broadly consistent with comments from our committees and other member groups and adds to the weight of evidence we were able to provide in our response to the government's consultation on the regulatory landscape.
The government says that "Smarter Regulation" means using regulation only where necessary, implementing it well, and ensuring its use is proportionate and future-proof. We agree, but there is a long way to go for that to become a reality. The question is, how do we get there?
Our suggestions included that:
- regulators should be required to adhere to common principles of "smarter" regulation (eg, to act proportionately) and government should consult on updating the existing principles of good regulation;
- better mechanisms should be applied to hold regulators to account and to enable regulation and regulatory practices to be improved; and
- government should provide a readily accessible map of the regulatory landscape to make it easier for the public to understand and navigate eg, who are the regulators, how much do they cost and how do overlapping regulators interact with each other.
If you agree that something needs to be done to improve the UK's regulatory regime and would like to join us on the road towards better regulation, please apply to join our Business Law Committee. We always value the "real world" input from small practitioners who have an interest in how regulation impacts our business and our lives (for better or worse).