Doing the Right Things

1. Doing the Right Things Bruce G. Matthews Real Estate Council of Ontario

2. Overview • Why regulate? • What are the “right things”? • What aren’t the “right things”? • Understanding and managing consumer expectations

3. Why Regulate? • Regulation as risk management and risk mitigation • Risk to individuals and risk to the “public welfare” and “public interest” • “Right touch regulation”

4. Right Touch Regulation ‘Right touch regulation is based on a proper evaluation of risk, is proportionate and outcome focused; it creates a framework in which professionalism can flourish and organizations can be excellent. Excellence is the consistent performance of good practice combined with continuous improvement’ • Harry Cayton, Chief Executive, CHRE (UK)

5. Right Touch Regulation • Identify the problem first • Assess and quantify the risks • Focus on outcomes • Use regulation only when necessary • Keep it simple • Be mindful of unintended consequences • Review and be responsive to change

6. The Right Touch Process • Identify the problem • Does it represent a risk? • Assess the risks • What are they and how significant are they? • Are they being managed now?

7. The Right Touch Process • Assess the scope of the problem • Local versus universal • Is regulation an appropriate solution? • Assess the potential for unintended consequences • Does the solution create its own risks?

8. Laws of Right Touch Regulation • Apply the minimum regulatory force needed to achieve the desired outcome. • Use regulation as a last resort. • A list is not a solution.

9. What are the “Right Things”? • Setting standards • Qualification / Practice / Conduct • Establishing processes • Enforcing the law • Communications

10. Setting Standards of Qualification • Knowledge, skill and judgment • These are minimums required to permit unsupervised practice and use of restricted titles • Setting the bar

11. Entry to Practice Process • Assessing knowledge, skill and judgment • Issues of education, training and experience • The regulator as gatekeeper

12. Setting Standards of Practice • Technical performance / execution of day to day responsibilities • Controlled acts

13. Setting Standards of Conduct • Behaviours • Code of Conduct / Code of Ethics • Issues of fairness, honesty, integrity, professionalism

14. Enforcing the Standards • The regulator as shepherd • Governance of practitioners • Complaints / Discipline process • Issues of openness and transparency • Issues of fairness, due process, justice

15. Dealing with Unlicensed Practice • Dealing with charlatans, pretenders • Overt and covert • Proactive and reactive approaches • The regulator as a police force

16. Communication • The public can’t have confidence in a regulator that it doesn’t know exists • Opportunity to be proactive • Managing the message

17. What aren’t the “Right Things”? • Advocacy • Anything perceived as being primarily in the interest of members • Anything unrelated to risk management and risk mitigation • Anything heavy-handed

18. Consumer Expectations • What does the public care about? • Perception versus reality • Accessibility • Customer service

19. Summary • A philosophy of right touch regulation will facilitate public confidence • Doing the “right things” is a package deal • Understanding consumer expectations about the “what” and the “why” is key

20. Speaker Contact Information Bruce G. Matthews Deputy Registrar, Regulatory Compliance Real Estate Council of Ontario 3300 Bloor Street West West Tower, Suite 1200 Toronto, ON M8X 2X2 T: 416-207-5149 E: bruce.matthews@reco.on.ca