Introduction
The Regulator Maturity Model describes the level of capability a regulator has in relation to the Regulatory Policy, Practice & Performance Framework (the RPPPF) and the 3 best practice principles in RMG 128 Regulator Performance (RMG 128). This includes a regulator’s ability to:
- deliver on its objectives
- employ a range of regulatory tools and techniques
- develop an appropriate relationship with policy makers, regulatory peers, the regulated community and stakeholders, and
- build an effective internal regulatory culture.
The model focuses on the behaviours of regulators. It is designed to complement existing Australian Government maturity models, not duplicate them.
Read more about the design of the model.
Who should use the Regulator Maturity Model
All Commonwealth regulators can use the model. This includes standalone regulators and areas within departments that perform regulatory functions.
How does the Regulator Maturity Model work
The model covers 12 capability domains that are linked to the RPPPF’s 6 principles. Each principle has 2 capability domains. These domains outline expectations for regulators that are described by the RPPPF and RMG 128. They cover:
- risk management, regulatory approach and foresight
- collaboration and engagement
- understanding the regulator’s ecosystem
- transparency, accountability and integrity, governance and culture
- use of evidence, intelligence and data
- digital and technological innovation, and
- continuous improvement and evaluation.
Capability Domains
Capability Domain 1.1
Capability to adjust regulatory approaches to meet changing risks and needs of the regulator, duty holders and stakeholders. Uses a mix of education, compliance, investigation, supervision, monitoring or enforcement led tools as appropriate for targeting regulatory activities to achieve regulatory priorities.
Capability Domain 1.2
Capability to apply anticipatory governance approaches or strategies, for example horizon scanning, trend analysis or key assumptions testing, to identify future risks, challenges and opportunities and respond accordingly.
Capability Domain 2.1
Capability to collaborate within own entity/regulatory function, with regulatory peers and others across different jurisdictions and with non-government stakeholders, and to use collaboration to create relationships that support strategic priorities.
Capability Domain 2.2
Capability to understand broader regulatory environment, costs, and impact of regulation, and support duty holders to comply with regulation.
Capability Domain 3.1
Capability to align communication and regulatory strategies and practices with user preferences, habits, behaviours, cultural, linguistic or accessibility requirements and the perspective of vulnerable duty holders while delivering fit-for-purpose regulatory outcomes.
Capability Domain 3.2
Capability to be trusted, transparent and accountable to duty holders and other stakeholders. Ensures simple, clear processes are place for duty holders and others as appropriate to appeal decisions, make enquiries or give feedback, or make complaints.
Capability Domain 4.1
Capability to create an effective culture and governance arrangements that support impartial decision-making and regulatory activities based on evidence and data, while maintaining independence and managing risks of being controlled or unduly influenced by duty holders or others.
Capability Domain 4.2
Capability to make use of evidence, intelligence and data for planning and performing regulatory functions, including sharing intelligence and data with regulatory peers where appropriate.
Capability Domain 5.1
Capability to use technological approaches that are inclusive and adapted to the needs of duty holders and stakeholders when performing regulatory activities.
Capability Domain 5.2
Capability to develop innovative ‘Digital First’ approaches to safely target regulatory efforts and achieve objectives.
Capability Domain 6.1
Capability to continuously improve systems, processes, and staff capability, including evaluating the effectiveness of regulatory activities in achieving regulatory outcomes and adjusting as required.
Capability Domain 6.2
Capability to deliver regulatory outcomes and ensure efforts and activities are prioritised appropriately. This includes identifying and learning from regulatory issues and near misses and sharing lessons with regulatory peers and policy makers.
Maturity Levels
The Model describes 4 levels of maturity for each capability domain. Each maturity level in the Model builds on the behaviours of the previous level.
Regulators with emerging capability may have little or no focus on current capability gaps or be unlikely to meet all current or future challenges. Little or no evidence that the regulator’s work aligns with the Regulatory Policy, Practice & Performance Framework.
Regulators with developing capability have limited or inconsistent focus on current capability gaps and a limited ability to meet all current or future challenges. Limited or inconsistent evidence that the regulator’s work aligns with the Regulatory Policy, Practice & Performance Framework.
Regulators with embedded capability have good focus on current capability gaps and are likely to meet most current or future challenges. Consistent evidence that the regulator’s work aligns with the Regulatory Policy, Practice & Performance Framework.
Regulators with leading capability have excellent focus on current capability gaps and are highly likely to meet all current or future challenges. Widespread evidence that the regulator’s work aligns with the Regulatory Policy, Practice & Performance Framework.
More information
Read more about the Regulator Maturity Model and help to use it.
Contact
For further information and support, please contact: regulatorcapability@finance.gov.au.
