42.This section requires a category 1 regulator to exercise its regulatory functions independently of its other functions or activities, and properly in all respects. This reflects that a body should carry out its regulatory functions separately from its other functions, especially any representative functions it may have, and do so in a manner that is appropriate for a regulator. The regulatory functions are instructive here as they point to what regulation is for and how regulators are to carry out that function. Where the regulator has functions other than regulatory functions, it must establish and maintain an independent regulatory committee to discharge its regulatory functions. A regulatory committee may delegate its functions to a sub-committee or an individual, subject to the restrictions in subsection (5) and a sub-committee can, with the approval of the regulatory committee, delegate functions to an individual (except the function described in section 8(5)(a)(ii)) (see section 11). It must also ensure that its governing body does not interfere with the committee’s discharge of these functions. The regulatory committee of a category 1 regulator must also maintain and publish a document setting out the matters in subsection (6) and must consult the governing body of the regulator before making any material changes to one of these matters, its governance arrangements.
Background Part 1 – Regulatory Framework Requirements of category 1 regulators Section 8 – Exercise of regulatory functions