1. OECD GUIDANCE FOR REGULATORY COMPLIANCE COST ASSESSMENT Antonia Custance Baker Analyst, Regulatory Policy Division OECD 14 April 2014

2. Principle 4: Integrate Regulatory Impact Assessment (RIA) into the early stages of the policy process for the formulation of new regulatory proposals. Clearly identify policy goals, and evaluate if regulation is necessary and how it can be most effective and efficient in achieving those goals. Consider means other than regulation and identify the tradeoffs of the different approaches analyzed to identify the best approach. Annex 4.4:When regulatory proposals would have significant impacts, ex ante assessment of costs, benefits and risks should be quantitative whenever possible. Regulatory costs include direct costs (administrative, financial and capital costs) as well as indirect costs (opportunity costs) whether borne by businesses, citizens or government. Ex ante assessments should, where relevant, provide qualitative descriptions of those impacts that are difficult or impossible to quantify, such as equity, fairness, and distributional effects. OECD Recommendation of the Council on Regulatory Policy and Governance (OECD, 2012)

3. Compliance Costs are a major element of the costs of regulation Berlin Workshop of 2012 – Concluded that an integrated assessment of costs and benefits should include a comprehensive and relevant assessment of the compliance costs of regulation – Identified technical challenges of measuring compliance costs Background

4. Project group composed of delegates from RPC 2 full day meetings (9 September and 14 November) Circulated to RPC for written approval 25 February Accepted for publication – available online April 2014 Process of Development

5. Main Report – Usable by generalist policy officers – Introduces all key aspects of substantive compliance costs – Step-by-step framework for compliance costs assessment process – Discusses a variety of approaches and pros and cons of different techniques – Provides template to develop country-specific guidance Annex A – Intended for economists/ policy officials responsible for drafting RIAs – Supplementary technical information for concepts laid out in main body – Information on related topics Content of Guidance

6. Taxonomy of regulatory costs

7. Flow chart of Compliance Costs Assessment

8. This Project is part of the Program of Measuring Progress in Regulatory Reform within the Regulatory Policy Division, and is under the auspices of the Regulatory Policy Committee. For further information, please contact: Project Manager, Measuring Compliance Cost- Antonia Custance Baker (Antonia.Custancebaker@oecd.org; +33 1 45 24 93 22) Program Coordinator, Measuring Regulatory Performance - Christiane Arndt (Christiane.Arndt@oecd.org; +33 1 45 24 76 56) www.oecd.org/governance/regulatory-policy/measuringregulatoryperformance.htm OECD Guidance for Regulatory Compliance Cost Assessment – Available from 30 April http://www.oecd-ilibrary.org/governance/oecd-regulatory-compliance-cost-assessment- guidance_9789264209657-en. Contact details