 Who Watches the Watchmen? The Role of the Self-RegulatorRobert Mysicka
C.D. Howe Institute Commentary, 2014, issue 416 Abstract: In Canada and around the world governments are granting an increasing number of professionals and other occupations in the service sector the right to self-governance and self-regulation or the delegation of authority that the state would normally hold. Self-regulation has become the preferred method of monitoring professional competence, standard setting, certification and the development of ethical codes of practice for a broad range of traditional professionals such as doctors, lawyers, real estate agents, insurance agents, human resource managers and many more. There are numerous advantages to self-regulation for professionals or an occupation aspiring towards professional status. The mere fact of self-regulation enhances the credibility and standing of an occupation and its members in the eyes of the public. Rulemaking or rule-enforcing powers grant autonomy and self-determination to professionals, cementing their status within society and providing them with influence over public policy and decision-making. Self-regulation can also assist a group in developing rules that are more responsive to the complex issues within a profession such as the avoidance of conflicts and ensuring that the current needs of clients are being adequately addressed. From the perspective of the state, self-regulation has the advantage of reducing the costs of regulation. The delegation ranges from a complete transfer of rulemaking and rule-enforcing authority from the state to the self-regulator, or through a partial delegation of regulatory powers, with the government able to provide some oversight. Self-regulation can be a smarter solution when a state-organized regulator lacks the financial means or political willpower to regulate in the best interests of the public and at the lowest cost possible.While the advantages of self-regulation are generally understood by governments and the professions, the downside of this form of regulation is less understood and often complicated by the nature of the interests at play. In this Commentary, I examine the role of self-regulators in Canada and some of the issues that can arise when self-regulating organizations take on policy and other decision-making roles traditionally held by governments. This Commentaryexplores examples of various policy decisions and actions taken by self-regulated organizations that have had or could have an impact on private businesses and the quality of service and representation afforded to the public generally and clients of professional services specifically. I recommend that governments tighten the procedural and substantive rules that affect the operation and scope of powers of self-regulatory and other organizations delegated authority by legislation. Keywords: Governance; and; Public; Institutions (search for similar items in EconPapers) Downloads: (external link) Related works: Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text Persistent link: https://EconPapers.repec.org/RePEc:cdh:commen:416 Access Statistics for this article More articles in C.D. Howe Institute Commentary from C.D. Howe Institute Contact information at EDIRC. |
Is your work missing from RePEc? Here is how to contribute.
Questions or problems? Check the EconPapers FAQ or send mail to .
EconPapers is hosted by the
School of Business at Örebro University.