Reinventing regulation within the corporation - Compliance-oriented regulatory innovation

Compliance-oriented regulation should be understood as a holistic approach to regulatory design, implementation monitoring, and enforcement in which t he guiding principle is the achievement of regulatory outcomes. Compliance- oriented regulation is therefore distinctively concerned with the effects o f public regulation in preexistent regulatory space where it must compete w ith private normative orderings. This article sets our the principles of co mpliance-oriented regulatory innovation together with evidence on their eff ectiveness. The widespread implementation of in-house corporate compliance systems in recent years means that compliance-oriented regulators need to b e particularly concerned with nurturing compliance capacity among regulatee s,fostering regulatory community through compliance professionalism, and de veloping standards for corporate compliance functions.