Model Framework for Developing and RegulatingProfessionals

Ajay Shah

National Institute of Public Finance and Policy

November 7, 2013

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1 Why now

2 Club to State

3 A Good SRO

4 Going Forward

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Why now

Why this seminar now

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Why now

2 stages of Development

1 Poor State-Citizen InterfaceForms are unfillableUnique practice of each government officeOnly physical filingsProfessionals spend time to gain experience in ‘working’ thesystem.

2 State-Citizen Interface ImprovesComputerisationStandardisationInternet teaches everyoneConsumers start demanding moreProfessionals face an existential crisis

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Why now

2 stages of Development

1 Poor State-Citizen InterfaceForms are unfillableUnique practice of each government officeOnly physical filingsProfessionals spend time to gain experience in ‘working’ thesystem.

2 State-Citizen Interface ImprovesComputerisationStandardisationInternet teaches everyoneConsumers start demanding moreProfessionals face an existential crisis

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Why now

Responses - Knee Jerk

Knee jerk ResponsesFight to keep systems closed and inaccessibleCreate more complex systemsCreate non-transparent organisations

ResultsGrowing frustration with consumersSide-lined by the economy – LPOVicious cycle - Defensive and Unethical behaviourDevastating response from the Political establishment - MCItakeover

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Why now

Responses - Knee Jerk

Knee jerk ResponsesFight to keep systems closed and inaccessibleCreate more complex systemsCreate non-transparent organisations

ResultsGrowing frustration with consumersSide-lined by the economy – LPOVicious cycle - Defensive and Unethical behaviourDevastating response from the Political establishment - MCItakeover

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Why now

Responses - Long term

Long term responsePre-empt the crisisRe-focus on highest value servicesAlign with client interestCreate a regulatory state (Club - State)

ResultsLong term survival

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Club to State

Club to State

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Club to State

Club to State

Clubs are not badOnly good for first level of development

StateMore cruel on defaultersMore standardisedHas clear separation of functions

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Club to State

Features of a State

Clubs are not badOnly good for first level of development

StateMore cruel on defaultersMore standardisedHas clear separation of functions

Professional organisations are regulators which in turn aremini-states

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Club to State

Good SRO

1 Legislative Functions: Making codes of conduct and entryconditions

2 Executive Functions: Holding exams as entry barrier andinvestigating complaints

3 Judicial Functions: Disciplining Members

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Club to State

What do we do in India

1 Legislative Functions: Sometimes good Sometimes bad2 Executive Functions: Extreme attention on entry barrier at the

cost of investigation3 Judicial Functions: Never shown to the public: Seen as a failure

of the SRO

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A Good SRO

A Good SRO

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A Good SRO

How to get a modern SRO - Legislative

1 Make detailed codes of conduct2 Make them available to the public3 Make them readable - FAQ’s, How To’s4 Provide more information about grievance redress

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A Good SRO

How to Get a Modern SRO - Executive

1 Study test results to review tests not studentsAre you getting a bell curve?

2 Do continuing education and not seminarsIs continuing education tested at the same level as entry?

3 Do investigation of complaintsAre complaints taken efficiently and seriously?Are investigations time bound?Are complainants informed about status?

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A Good SRO

How to Get a Modern SRO - Judicial

1 Impartial and effective judiciaryIs the system of addressing complaints fairUK Law on legal practitioner standard requires the chairman to benon-lawyerIndian proposed law requires chairman to be legal professional

2 Is there detailed procedure for adjudication?3 Is the complainant allowed to participate?4 Is it time bound?

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Going Forward

Going Forward

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Going Forward

Going there

1 A law is required2 The law has to be very ‘anti-professionals’3 The corporate standards of the governing body has to be the best4 Create a system of improving standards5 Getting transparency

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Going Forward

Transparency

1 You can find all pending and decided disciplinary action against alawyer in New York - on their bar website

2 In the City itself - 65 disciplinary actions (12 disbarment)3 Consumers can see it any time

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Going Forward

Professional Development

1 Do Nothing - Competitive and regulatory pressures will bring outthe best

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Going Forward

Thanks

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