Regulation must offer benefits to all stakeholders,
including government, the regulated and the community at large. We believe that to be truly effective, regulation must provide benefits to all stakeholders. This typically includes to the regulated individuals or entities as well as to their clients or customers and to the government. The provision of benefits is essential for the avoidance of the oppressive effects of regulation, and achieving ‘buy in’ from those regulated. In addition, if regulation does not deliver benefits to individuals which interact with the regulated and to the community generally, then pressure will build for more or stronger regulation. This pressure usually falls on the government or professional association to increase regulation, which is often the product of consumer or community dissatisfaction. The result is ‘top down’ regulation. This type of regulation does not achieve much if anything in changing the culture of the regulated towards better service delivery or improved ethical behaviour. Benefits can take the form of higher quality service delivery to the client, lower cost or greater certainty of outcome, while to the service provider the benefits may include improved job satisfaction and community respect, reduced stress and potentially increased profit. For the government the greatest benefit that can be achieved by effective regulation is that the government can stay out of the field. Government has little appetite for assuming the role of a regulator, and usually uses the vehicle of legislation to create entities to oversee regulation.
More Information - Follow Source
S. Mark and T. Gordon, “Regulating the Legal Profession – A Prototype for Change”, in J. O’Brien and G. Gilligan (eds.), Integrity, Risk and Accountability in Capital Markets Regulating Culture, First edition, Hart Publishing, September 2013.
See http://www.amazon.com/ Integrity-Risk-Accountability- Capital-Markets/dp/1849465673