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PHILIPPINES - REGULATORY IMPACT ASSESSMENT (RIA) GUIDELINES DRAFT – FOR DISCUSSION AND FINALISATION 4.6 Step 6: Preparing the Regulatory Assessment Summary (RAS) A RAS is prepared and attached to each regulatory proposal for review by the pilot department and other relevant authorities (eg., the President’s Office) when seeking approval of the regulation. It summarises the regulatory development process and outcomes with the regulation, and provides evidence to authorities as to whether the regulation was developed in accordance with regulatory ‘best practice’ principles. Under the initial agreed scope of the Regulatory Impact Assessment (RIA) system, where a proposed law or decree is assessed as likely to: (i) not impose significant impacts on business, the RAS is a summary of the completed Preliminary Impact Assessment (PIA); or (ii) impose significant impacts on business, the RAS is a summary of the final Regulatory Impact Statement (RIS). See attachment D for the Regulatory Assessment Summary (RAS) Template. All sections of the RAS must be completed and explanations provided for areas of non-compliance. The RAS endorsed by the Secretary is to be attached to the final regulatory proposal for subsequent review by the President’s Office/other nominated office (to be confirmed), if required. 4.7 Review Regulation should be reviewed regularly to ensure it remains relevant and effective over time. Two key considerations are: 1. Whether there needs to be a post implementation review conducted to ensure that the regulation delivers the polis objective in accordance with regulatory best practice principles? For example, a post implementation review could be very useful where a regulation was implemented urgently and did not have time to complete the full RIA process, or there is a high level of uncertainty with the impact assessment conducted); and 2. When should the regular review of the regulation be conducted? For example, a regulation should be reviewed on a regular basis to ensure it is still relevant and effective (other jurisdictions typically review their regulation on the 10 th anniversary of a regulation) Version 4.0 23 July 2012 DRAFT Page 20/24
PHILIPPINES - REGULATORY IMPACT ASSESSMENT (RIA) GUIDELINES DRAFT – FOR DISCUSSION AND FINALISATION KEY ASSESSMENT ISSUES 5.1 Assessment of Impacts Often a wide variety of impacts result from regulation. Impacts include economic, competition, international agreements, compliance and administrative, social and environmental impacts on all stakeholder groups affected (business, community and government) by the regulation. Both the PIA and RIS require an assessment of impacts of regulatory options. Generally, a cost benefit analysis (CBA) is used to quantify and assess impacts. While a detailed CBA is not required in a PIA, it can be useful to assess the significance of impacts. A detailed CBA is required in a RIS. The CBA is a tool that measures that quantifies the value in today’s dollars of benefits and costs associated with the impacts of each regulatory option identified. These values are examined against a base case, which is the value determined for the current regulatory position. However, not all impacts may be able to be quantified (eg., the level of effort to quantify may not be able to be justified because of the insignificance of the impact, or the required information is not available). In this case, the benefits and costs of impacts should be described in a qualitative way so that regulatory options can still be compared. Accordingly, impact assessment generally follows a 3-step process: 1. Establish a base case for the current regulatory position – conduct an impact assessment for the current regulatory position (even if there is no regulation) and determine the net benefit (cost) position 2. Establish an impact assessment for each regulatory option - conduct an impact assessment for each regulatory and determine the net benefit (cost) position of each option 3. Compare the results of the impact assessment for each regulatory option against the base case and determine which provides the greatest net benefit to the Philippines. The regulatory burden (that is, red tape arising from unnecessary or excessive regulatory requirements) on business, community and government should be minimised. The greater the regulatory burden, the higher the compliance costs, and the more significant the impact on business efficiency and performance. The compliance and administrative burdens imposed by a regulation should be proportionate to the objectives of the regulation. Version 4.0 23 July 2012 DRAFT Page 21/24
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