aT ke CoB La Principles (PGRP)TABLE OF CONTENTS |. Philippine Good Regulatory Principles (PGRP) Principle 5: Ensure and sustain effective and inclusive stakeholder ‘engagement Principle 6: Regulations shoud be congruent and consistent with other regulations to achieve policy coherence IL Philippine Good Regulatory Principles (PGRP) Principle t Principle 7: Regulators must work together to support regulatory Provide clarity in policy rationale, policy objectives/goals, institutional frame ‘cooperation nal levels and support regular and continuous regulatory works and support mechanisms capacity development inttives Principle 2: Principle 8: Regulators should subject regulations to regular review and Regulations should have a sound legal and empirical basis to establish a ‘evaluation fr continued relevance, efficiency, and effectiveness and to need for anew regulation and to only intervene in instances when evidence keep pace with change from emerging technologies. identifies an issue or a need for intervention Principle 9: Regulators must ensure that regulations are compatible Principle 3: with competition, rade and investment-faciltation principles at both Ensure thatthe regulations will accrue benefits that will justity and/or domestic nd international levels ‘minimize the least costs, and unintended effects, and negative impact to the ‘economy, society, andthe environment among others Principle 10: Promate Regulatory Risk Management at every stage ofthe decision-making process Principle & ‘Assess and consider all regulatory intervention and policy options II Frequently Asked Questions ~ Including non-regulatory interventions through Regulatory Impact Assessment (RIA).Philippine Good Regulatory Principles (PGRP) Cognizant of the importance of mutually recognized processes, systems, tools, and methods aimed at improving the regulatory environment ofthe Philippines, the Anti-Red Tape Authority (ARTA) has benchmarked the Philippine Good Regulatory Principles (PGRP) from the Organisation for Economic Co-operation and Development (OECD) and recommendation ofthe Council on Regulatory Policy, the ASEAN Guidelines on Good Regulatory Practices (GRP) andthe UK Regulators’ Code ‘Te PGRP area set of principles outlining good regulatory practices to which agencies can align their regulatory processes and actives. ARTA, in accordance with its mandates as prescribed under RA, 1132 otherwise known a5 the "Ease of Doing Business Act of 201, will promote these principles so that businesses and regulated entities understand wha they can expect from regulators, The principles outlined inthe PGRP are Principle 1: Regulators should provide clarity in poic rationale, policy, objectives/goals, institutional frameworks and support mechanisms Principle 2: Regulators should ensure that regulations should have 2 sound legal and empirical basis to establish a need for anew regulation and to only intervene in instances when evidence identifies an issue or a need for intervention Principle 3: Regulators should ensure thatthe regulations will accrue benefits that wil ustiythe least costs unintended effects, and negative impact to the economy, society, and the environment among others Principle 4: Regulators should assess and consider all policy options including non-regulatory interventions through Regulatory Impact Assessment (RIA). Principle 5: Regulators should ensure and sustain effective and inclusive stakeholder engagement Principle 6: Regulators shoul ensure that regulations shouldbe congruent ‘and consistent wth other regulation to achieve policy coherence Principle 7: Regulators must work gether to support regulatory cooperation nal levels and support regular and continuous regulatory Capacity development intatives Principle 8: Regulators should subject regulations to regular review and evaluation for conned relevance, efciency, and effectiveness and to keep ace with change irom emerging technologies, Principle 9: Regulators must ensure that regulations are compatible with competition, trade and inestment-facitation principles at both domestic and international levels Principle 10: Regulators should promote Regulatory Risk Management at ‘every stage of the decision-making process‘The Philippine Good Regulatory Principles (PGRP) provides supplementary ‘guidance to government agencies covered by Section 3 of RA, TID and to businesses and other regulated entities on how they should regulate and expect to be regulated ‘The purpose isto: Provide a flexible and princples-based framework for regulatory rule making and delivery that support government agencies to design regulatory policies that best suits the needs of businesses and other regulated ents; + Serve asa gue for regulators to provide polices, procedures, organizational values, behavioral and service standards expected of them for businesses and other regulated entities to understand what they should expect from those who regulate them; and ‘Aquide for business and other regulated enlis so they can understand the set of principles that regulators should adhere to. Core Principles, Behaviors, and Practices. Principle 1: Provide clarity in policy rationale, policy objectives/goas, institutional frameworks and support mechanisms 1 In an effort to provide clear, transparent, and coherent regulatory polices, decisions, and orders, regulators should abide by the following key best practices: ‘Regulators shoud take into account existing and other proposed regulations and whether they are consistent, aligned ‘and supportive af the country's overall development abjectives. b. Upon careful analysis through the use of regulatory ‘management tols such as RI, regulators must ensure that policies are crafted to support capacities ofboth regulators and regulated entities to enforce and comply to regulations, respectively. Principle 2: Regulations should have a sound legal and empirical. basis to establish a need fora new regulation and to only intervene in instances when evidence identifies an isue or 2 need fo intervention 21 Regulators should ony intervene i instances when evidence support that regulations wil address the issue or lead to benefits 22 Regulatory agencies must be able to identity and establish a sound legal basis forall regulatory policies in accordance with the mandate and functions af your agency.Principle 3: Regulators should ensure thatthe regulations wil accrue benefits that wil justify the Least costs, unintended effects, and negative impact to the economy, sociey and the environment among others 31 When crafting and/or reviewing regulatory polices, regulators should take into consideration its potential impact, costs, and effects upon the ‘economy, society, and environment. This can be achieve by ooking at all possible impacts of the regulation as well as undertaking evidence-based studies and assessments, Regulators wil alco seek the_views of thase who will be affected to understand the impact and costs imposed 432 Overall, agencies therefore should design and implement regulations vith benefits that justifies the costs. Costs may cover but are not limited to compliance and manitorng costs as well as negative externalities, Principle 4: Assess and consider all regulatory intervention and policy options including non-regulatory interventions through Regulatory Impact Assessment @u. ‘41 Regulators should assess and consider a spectrum of regulatory ‘options such as but not and should not only be limited tothe imposition of licenses, permis, registrations, and certifications. This false means considering notte regulate orto impose quasi-regulatory options when warranted and where there is sufficient evidence todo Principle 5: Regulators should ensure and sustain effective and inclusive Stakeholder engagement 51 Government agencies, civic groups, interested and affected parties, research and academic institutions, and other relevant public ané private organizations should be involved from the intent to draft @ regulation until the review of regulations prior and post-implementation ‘through the design and implementation of a comprehensive stakeholder ‘engagement protocol/ramework The consultation process should also consider all perspectives on issues, proposed alternatives, awareness. raising, to foster transparency and accountability. 52 Regulatory agencies should integrate stakeholder consultation inthe itferent stages of the regulatory rulemaking process as well as inatitutonaliing reasonable participation at all evel Regulatory ‘agencies should integrate stakeholder consultation inthe diferent, stages ofthe regulatory rulemaking process 2s well a5 insitutonaliing reasonable participation a al levels. Asa matter of policy the state shal bylaw failtat the establishment of adequate ‘oneultalion mechanisms, Regulatory agencies should also maximize ‘allchamels to engage stakeholders (e9, stakeholder fora/summits, ‘mals, electronic platforms, and/or focus group discussion). 53 A feedback mechanism shouldbe set in place to ensure that stakeholders are informed ofthe corresponding actions and/or decisions ofthe regulatory agency in processing the stakeholders inputs. '54Consuitations conducted shouldbe properly documented. This can be achieved by utlizing both tational and non-traditional forms of record keeping and documentation such as but no ited to: * Minutes of Meetings: * Voice Recording * Sworn Statements * Recorded Online Video Conferencing: "Email, Chatbots, and other applicable online platform or ps consultation tools. SERPrinciple g: Regulators should ensure that regulations shouldbe congruent and consistent with other regulations to achieve policy coherence {41 Regulators should avoid overlapping and inconsistent regulations. These occur when several or multiple National Government Agencies (NGAS) ‘and/or Local Government Units (LGUs) ae actively engaged in similar it not duplicative) regulatory activities. Regulators are advised to conduct a ‘Regulators wil needa skilled and efficient workforce to implement better regulation. Regulatory agencies should ensure that there is an adequate amount of work staff that possess the necessary capacity ski, and knowledge to implement existing regulations and formulate evidence-based proposed regulations and support regulated entities to comply thorough assessment in accordance with Principle 4 ofthis dcument. This is $0 rule makers can avoid duplication and/or conflicting regulations for both proposed (Ex-Ante) and existing regulations (Ex-Post Principle 8: Regulators should subject regulations to regular reviwand evaluation for continued relevance, efficiency, and effectiveness and to keep Principle 7: Regulators must work together to support regulatory cooperation in ace with change from emerging technlogies, all levels and support regular and continuous regulatory capacity development initiatives 81 Regulators must practice regular review and evaluation to avoid 11 Before regulators engage in regulatory cooperation, rote clarity is essential for any agency to fully implement its mandate and functions. This means that regulators should nat have coafictng objectives, functions and scope wherein there is a clear mandate that defines the role of each regulator as prescribed in public policy (eg. laws, issuances, ordinances, etc). Regulators must also have the power to cooperate ‘transparently wth other regulatory bodies. 112Te achieve the objectives of this principle, regulators both atthe local and national levels must adhere toa concerted effort of regulatory cooperation through an adoption ofa Whole-of-Government approach as prescribed under Rule Il, Section 3 of the Implementing Rules and Regulations ((RR) of R.A, 1032. This may ental the review and harmonization af existing and applicable laws, regulations, issuances, ‘and polices to make legal interpretation consistent across agencies as, ‘well as exchange of information and data if necessary. international regulatory cooperation also entails engaging with international regulatory agencies and organizations as well as the regulated andthe broader local and international community. repetitive outdated, burdensome, and undue regulations. Regulators must also ensure that Monitoring, Evaluation, and Learning (MEL) ‘mechanisms shouldbe used to ensure existing regulations are applicable and relevant at present ime. (eg inclusion of sunset clauses wherein a measure within a statute, regulation or law provides an ‘automatic repeal and shall cease to have ellect alter a specific date and conduct of regular oversight committee meetings). {8.2 Regulators should meet the expectations set by oversight bles in the review of ther stock of regulations This may include participation and compliance with existing and future planned inatves by ARTA or a may be required by law. Further, regulators are highly encouraged to conduct additional actvties/programs (ce. Internal Reduction Targets, ‘Scorecards, Internal Sharing of Best Practices) and/or utilize tools (RA, ‘SCM) that support the mentioned review. 8.3 Stocktaking and assessing current regulations wil be vital in keeping future regulations sound andin-check.£83 Stocktaking and assessing current regulations will be vital in keeping future regulations sound and in-check. {84 Regulations must keep pace with change from emerging technologies and to design “it-for-purpose" regulatory frameworks that tackle enforcement challenges brought about by the ‘muli-dimensiona effects ofthese technologies. To able to address the changing and disruptive nature af emerging technologies, regulators must adapt by assessing the current limitations of esting regulatory regimes. To ensure sustainably, regulatory frameworks should tke inte consideration the pace of disruption, consumer behavioral changes, and evolving stakeholder preferences which can also provide useful insights for regulators to understand "fi-for-purpose” regulations (eg. adopting a regulatory sandbox approach for financial technology ar FnTech services). Principle 10: Regulators should promate Regulatory Risk Management at every stage ofthe 101 m2 decision-making process Regulators should take an evidence-based approach to determining and managing risks involved at every stage ofthe regulatory cyte This means identifying and prioritizing risk areas that have been known to cause problems and allocating the necessary policy interventions to mitigate those risks. Regulators should develop, design and craft a risk assessment {framework that will have a mechanism in lace to identity compliance risk aswell as an avenue for continuous review and ‘assessment with all stakeholders, The risk assessment framework ‘should algo take into consideration the concept of impartiality in ‘order tobe fair and to avoid conflicts of intrest, unfounded bias or improper influence from stakeholders Principle 9: Regulators must ensure that regulation are campatible with competition, trade and investment-feciitation principles at both domestic and international levels £2 In alignment with R.A. 10667 otherwise known asthe Philippine Competition Act, regulatory policies should promote, adhere, and be compatible to competition principles and policies that create an environment conducive for entrepreneurship, encourages private investment, feiltates technolagy development and transfer, and enhances resource productivity. By doing so, regulatory policies for both proposed and existing regulations should avoid anti-competitive practices that hamper growth andthe overall, development objectives ofthe country.frequently QUESTIONS 0 {What are the Good Regulatory principles? ‘They st outa clear, exible, and prncples-based framework for how ragulators should engage wth thase they regulate, They establish expectations of behaviour by the regulatr. Principles-based approach means these behavioral standards can be implemented by abroad range of regulatory agencies. This enables adjustment according tothe size and type of regulator. They are not Descriptive in how they can be implemented to allow fr differences 2 what might work well for one regulator is unlikely to work equally wel for al (Why are these principles needed? ‘Whilst regulatory simplification has improved the ease of doing businesses in the Philippines, this approach does not deal with how laws and regulations are implemented by the regulatory agencies, hich are as important asthe rules themselves {2 What are the benefits ofthe principles? ‘These principles wil improve the accounlabilly of regulators to businesses and citizens, making it easier for businesses to understand how to comply and save time and money. {Why do we need our own principles when there are ASEAN principles? ‘A The Philippine Good Regulatory Principles (PGRP) was adopted from the ASEAN Good Regulatory Practice Core Principles and the UK Regulators Code orto provide country-specific principles adapting to the country’ unique regulatory environment and fit-for-purpose suielines created forts own economic and regulatory management system. The PGRP also has an expanded numberof principles identified to be most crucial in the starting stage ofthe Philipines in the regulatory management system, {2 What isthe relationship withthe Citizens Charter? ‘The principles set out what Level of service businesses can expec rom ‘services that ae provided by government. It is equivalent tothe Citizens Charter which sets out government tits citizens. It describes the step-by-step procedure fora particular service, andthe performance level that they may expact for that sevice {How were the principles developed? 1X The Anti-Red Tape Authority (ARTA) in partnership with the UK Government has developed the Pillppine Good Regulatory Principles (GRP) through the review and adoption of established principles from the Organisation for Economic Co-operation and Development (OECD) and Recommendation ofthe Council on Regulatory Policy, the ASEAN Guidetines on Good Regulatory Practices (GRP) and the UK Regulators Code and in consultation with both the Philippine publi and private stakeholders.(Q How will ARTA implement the principles? A: ARTA will conduct awareness-raising activities to inform ‘and acclimatize the agencies with the PGRP through ‘national rll-outs such as webinars and online meetings; publish information, education, and communication ‘materials including audio-visual presentations, posters and ‘other tools to support compliance, and work with regulatory ‘agencies to understand and address their compliance ‘issues, The operationalization ofthese principles isin line With the issuance ofthe National Policy on Regulatory Management and the implementation of the provision of RA 11032 on RIA, {How will agencies demonstrate that they are complying with the principles? ‘Through the conduct of Regulatory Impact Assessment, the proposed regulations of all government agencies covered under Section 3 of Republic Act No. 1032 willbe able to ‘demonstrate compliance both on the provisions of the law ‘andthe PGRP. ‘What happer it agencies do not comply withthe principles? 'A: The PGRP must be viewed as a set of guidelines wit the aim of producing high-standard regulations. In connection with the law, however, Republic Act No. 11032 stil enforce that “AlL proposed regulations of government agencies under Section 3 ofthis Act shall undergo regulatory impact assessment to establish if the proposed regulation does not add undue regulatory burden and cost to these agencies and the applicants or requesting parties” [Sec. 5, RA No. 11032) Ne aN Te) eSatae Our UK Partners is Exceleny Daniel Pruce Her Maestys Ambassador othe Philippines UK Department for Business, Energy, and Industrial Strategy (BES) Ms Ha Hoang Ms, Zoe Dayan Ms, Laan Nguyen i. Stephen Poole Regulatory Expert) Ws, Race Holloway (Regulatory Expert) UK Foreign Commonw th and Development fice (FCDO) Ws, Josephine Orense Ease of Doing Business and Anti - Red Tape (EODB-ART) Advisory Councit ‘Sec. Ramon Lope ~ Department of Trade and Industry (OT) Chairman, EODB-ART Aévsory Court.