Executive summary

As “market referees”, regulators must take on board the views of legitimate interests as well as protect themselves from inappropriate or undue influence in order to correctly conduct their activities and achieve the right policy outcomes. Independence is a means to this end. Independence from both the government and regulated industry ensures that regulators’ decisions and activities are objective, impartial, consistent and expert. The capacity of regulators to act independently helps implement and refine the policy frameworks developed by government institutions that seek to improve the functioning of markets, sectors and environments through regulation.