Consultation charter

Our consultation charter sets out what stakeholders can normally expect when we consult on regulatory proposals.

Purpose

Effective consultation is not a procedural formality. It is an important part of good regulation. When we develop new policy or materially amend our regulatory framework, the quality of the outcome depends significantly on the engagement that informs it. This charter sets out the commitments we will uphold when engaging with stakeholders on regulatory proposals.

Scope

This Charter describes how we will normally consult when developing new regulatory policy or materially amending existing regulatory policy. It applies to our consultation processes, including:

• formal public consultations
• discussion papers
• industry working groups
• targeted outreach

We will apply these commitments proportionately to the form and impact of the engagement.

This charter does not override statutory requirements or circumstances where consultation is not legally or operationally possible, for example because of urgency, statutory constraints or the need to prevent harm. Where we do not consult on a proposal that would normally be consulted on, we will explain the reason where it is appropriate and lawful to do so.

Our commitments

Genuine consultation:

• we will only consult where we are genuinely open to the responses we receive
• consultation responses will be considered carefully and will inform our final position
• where a decision has already been taken for legal or other compelling reasons, we will communicate that decision directly and explain its rationale, rather than inviting views on matters that are effectively already settled

Visibility of the regulatory pipeline:

• we will maintain and publish a forward-looking indication of upcoming policy and regulatory work, so that industry has sight of what is coming and can plan accordingly
• the forward look reflects current planning assumptions, and priorities and timing may change as proposals develop
• where we intend to consult on a significant proposal, we will aim to provide advance notice before the consultation opens, so affected stakeholders can allocate appropriate time and resources to respond

Adequate time to respond:

• consultation periods will reflect the complexity and significance of the proposals
• we recognise that preparing a considered response requires time, both for smaller firms with more limited compliance resources and for larger firms coordinating across departments or wider group structures
• for policy consultations, we will normally provide a minimum consultation period of six weeks
• where a shorter consultation period is necessary, we will explain why

Clear and focused questions:

• our consultation documents will explain what is being proposed, the policy rationale behind it and the specific areas on which we are seeking views
• they will be drafted in accordance with our published drafting standards and should be clear enough for affected stakeholders to understand the proposal and engage with the questions being asked
• where the subject matter is technical, the material will be written for its intended audience

Timely and transparent outcomes:

• following the close of a consultation, we will publish feedback that summarises the responses received and explains how they have informed the final position
• feedback will normally be published within 12 weeks of the consultation closing
• where this is not possible, we will explain why and, where appropriate, provide an update on expected timing

A proportionate process that supports participation:

• we will make our consultation processes as straightforward as possible
• the form of consultation will reflect the nature and impact of the proposals
• where appropriate, we will provide opportunities to engage before, during or after consultation, and we will keep the mechanics of the process under review so that participation is not unnecessarily burdensome
• where appropriate, we will also provide ways for stakeholders to submit feedback anonymously

Feedback

We welcome feedback on our consultation process. Where the process has not reflected this Charter, we will consider the issues raised and use them to inform future practice.