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Principles of Regulation

 The principles of good regulation

1. Efficiency and economy

We are committed to using our resources in the most efficient and economical way. As part of this The Consultative Committee of the Commission Trust Fund (CRT trust fund) can commission value-for-money reviews of our operations.

2. Proportionality

We must ensure that any burden or restriction that we impose on a person, business, organization or activity is proportionate to the benefits we expect as a result. To judge this, we take into account the costs to businesses, organizations and individuals as well as our members.

3. Sustainable growth

We must ensure there is a desire for sustainable growth in the global economy both domestically in CRT partnering countries as well as internationally.

4. Member responsibility

CRT members should take responsibility for their decisions.

5. Senior management responsibility

A businesses or organizations senior management is responsible for the company activities and for ensuring that its business complies with all CRT regulatory requirements. This secures an adequate but proportionate level of regulatory intervention by holding senior management responsible for the risk management and controls within businesses and organizations. Businesses and organizations must make it explicitly clear who has what responsibility and ensure that its business operations can be adequately monitored and controlled.

6. Recognizing the differences in the businesses carried on by different regulated persons

Where appropriate, we exercise our functions in a way that recognizes differences within the nature of, and objectives of, businesses carried on by different persons subject to requirements imposed by or under CRT policy.

7. Openness and disclosure

We should publish relevant market information about regulated persons or require them to publish it (with appropriate safeguards). This reinforces market discipline and improves overall knowledge about their financial / operational business matters.

8. Transparency

We should exercise our functions as transparently as possible. It is important that we provide appropriate information on our regulatory decisions, and that we are open and accessible to the regulated community through our NSB's and the business community who's interests we serve.

The principles for businesses of CRT accredited members.

1. Integrity

A business, organization or individual must conduct its business activities with integrity and respect. Integrity in business practice is a clear requirement working internationally.

2. Skill, care and diligence

A business, organization or individual must conduct its business with due skill, care and diligence.

3. Management and control

A business, organization or individual must take reasonable care to organize and control its affairs responsibly and effectively, with adequate risk management and contingency planning in place.

4. Financial prudence

A business, organization or individual must maintain adequate financial resources.

5. Market conduct

A business, organization or individual must observe proper standards of market conduct as stipulated within their accreditation terms and conditions.

6. Customers' interests

A business, organization or individual must pay due regard to the interests of its customers and clients and treat them fairly.

7. Communications with clients

A business, organization or individual must pay due regard to the information needs of its clients, and communicate information to them in a way which is clear, fair and not misleading.

8. Conflicts of interest

A business, organization or individual must manage conflicts of interest fairly, both between itself and its customers and between a customer and another client.

9. Customers: relationships of trust

A business, organization or individual must take reasonable care to ensure the suitability of its advice and discretionary decisions for any customer who is entitled to rely upon its judgment.

10. Clients' assets

A business, organization or individual must arrange adequate protection for clients' assets when it is responsible for them.

11. Relations with regional national standards bodies (NSB's)

A business, organization or individual must deal with its NSB regulators in an open and cooperative way, and must disclose to the appropriate NSB appropriately anything relating to the business, organization or individual of which that NSB would reasonably expect notice.

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