On 6 April 2014 the new Regulators' Code (the "Code") replaced the Regulators' Compliance Code, which dated back to December 2007. The Code applies to a range of regulators, including more than 50 national regulators, all local authorities and some regulatory functions carried out by government ministers. Relevantly for readers of this blog, BIS's summary of the regulators and regulatory functions covered by the Code includes the Financial Conduct Authority, the Prudential Regulation Authority, the Pensions Regulator, the Information Commissioner, the Financial Reporting Council, the Insolvency Service and HMRC (in relation to functions conferred by the Money Laundering Regulations 2007).
Regulators whose functions are specified by order under section 24(2) of Legislative and Regulatory Reform Act 2006 must have regard to the Code when developing policies and operational procedures that guide their regulatory activities. They must equally have regard to the Code when setting standards or giving guidance which will guide the regulatory activities of other regulators. If a regulator concludes, on the basis of material evidence, that a specific provision of the Code is either not applicable or is outweighed by another relevant consideration, the regulator is not bound to follow that provision, but should record that decision and the reasons for it.
Regulated financial institutions will find the Code an interesting and encouraging read. Of particular resonance for those facing multiple information requests and notification obligations from our new financial regulators is the requirement that regulators should collectively follow the principle of "collect once, use many times" when requesting information from those they regulate, and the exhortation for them to agree secure mechanisms, when the law allows, to share information with each other about businesses and other bodies they regulate, to help target resources and activities and minimise duplication.
Regulators will also note that the Code provides that the Government itself will challenge regulators whose policies and standards do not accord with the Code.
Our Administrative and Public Law team have produced a more detailed briefing on the Regulators' Code .
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