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Reinventing Regulation within the Corporation

Compliance-Oriented Regulatory Innovation

University of New South Wales

Compliance-oriented regulation should be understood as a holistic approach to regulatory design, implementation, monitoring, and enforcement in which the guiding principle is the achievement of regulatory outcomes. Compliance-oriented regulation is therefore distinctively concerned with the effects of public regulation in preexistent regulatory space where it must compete with private normative orderings. This article sets out the principles of compliance-oriented regulatory innovation together with evidence on their effectiveness. The widespread implementation of in-house corporate compliance systems in recent years means that compliance-oriented regulators need to be particularly concerned with nurturing compliance capacity among regulatees, fostering regulatory community through compliance professionalism, and developing standards for corporate compliance functions.

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