Smart regulation is a regulation based on the challenges that come from the society, from already established social relations — Savva Shipov, Deputy Minister of Economic Development of the Russian Federation.
First, through the models, through data availability, we need to understand how regulation actually works. Second, we need to engage those who will be affected by this regulation into the process of its development. Third, the regulation must be flexible, as digital economy is all about speed, we need to act fast. <…> We are saying that we need to be flexible and adapt to changes, but our regulation is not like this — Maria Shklyaruk, Vice-President, Centre for Strategic Research.
Development of smart regulation is based on a number of key factors that have to narrow the gap between what we put into regulatory acts and what we put into practice — Maria Shklyaruk, Vice-President, Centre for Strategic Research.
Let’s consider our anticorruption expertise: if regulation gives an official authority to use their own discretion, it means that this regulation has corruption capacity. But in practice we state the requirements in great detail, and once it is put it into a document, malevolent players who want to get around a law easily do that — Savva Shipov, Deputy Minister of Economic Development of the Russian Federation.
Economy is a social area that is the most vulnerable for regulatory risks, and errors in regulation come at a very high cost — Ilya Kucherov, Deputy Director, Institute of Legislation and Comparative Law under the Government of the Russian Federation.
Adoption of a bylaw takes over a year, adoption of a law – even longer, and, of course, we are left behind — Savva Shipov, Deputy Minister of Economic Development of the Russian Federation.
Why the legislation is not changing fast enough, <…> officials assess the risks using the ‘do no harm’ principle — Igor Drozdov, Chairman of the Board, Skolkovo Foundation.
Given any regulation, there can be sabotage at the local level, there can be attempts to keep the old rules, for example, a part of streams of rents. <…> How can we avoid that? We should give the regulator room for mistakes — Maria Shklyaruk, Vice-President, Centre for Strategic Research.
Now we see a whole new phenomenon when the industrial regulation stops being exclusively industrial, cross-sectoral regulation is coming to the forefront, and industries are becoming entangled. This leads to a certain disbalance in the established system of relations, including legal ones. <…> As digital economy is also cross-border, there is another threat or possibility – use of legal instruments in cross-border relations. <…> The art of smart regulation lies in maintaining the balance — Ruslan Ibragimov, Member of the Management Board, Vice President for Corporate and Legal Affairs, MTS.
What our vision lacks <…> regulatory oversight. <…> For almost every so-called general oversight an investigation can be launched — Maria Shklyaruk, Vice-President, Centre for Strategic Research.
Have no right for mistake, we cannot be creative. On the other hand, authorities cannot afford mistakes. A solution here might be regulatory ‘sandboxes’ — Savva Shipov, Deputy Minister of Economic Development of the Russian Federation.
It is a legal experiment that allows for technologies involved in digital economy to get beyond existing regulation and spend some time in a ‘sandbox’ while new rules and instruments of soft regulation are being developed — Maria Shklyaruk, Vice-President, Centre for Strategic Research.
Without regulatory ‘sandboxes’ such breakthroughs in technologies would be quite hard to do, and it particularly concerns <…> requirements in industrial legislation — Tatyana Popova, Deputy General Director, IBS.
We have serious problems with data in our state, because there is so much secrecy <…> personal, bank etc. And the problem of data usage lies in solving the issue of data management by their primary owners. The basic solution here is to offer an efficient instrument for management, consent for processing these data, this mechanism should be fast, efficient and transparent — Oleg Pak, Deputy Minister of Digital Development, Communications and Mass Media of the Russian Federation.
Development of a platform where we could, so to say, in a ‘wiki’ mode create drafts of regulatory acts, and at the same time it would be expression of will by the authorities <…> Openness of the whole process, with logging of each step, understanding who introduced amendments. <…> Transition to such instruments would make it possible to adopt documents faster, more proficiently and, which is the most important thing, take responsibility for the proposed amendments — Savva Shipov, Deputy Minister of Economic Development of the Russian Federation.
The strategy that the Center for Strategic Research was drafting together with our colleagues, consists of several key components: it is digital law-making <…> it is reliance on data — Maria Shklyaruk, Vice-President, Centre for Strategic Research.
Digital accountability <…> here the regulatory rules and requirements <…> are frequently changing, and in order to help the market players to meet these requirements we use information technologies, elements of artificial intelligence. But <…> it is not the only way, for example, the central bank of Austria <…> is not using XBRL <…> it got access to the primary documents for credit agreements, based on which it transferred almost all oversight tasks online, <…> and they have no need to receive any statements from financial organizations <…> also, using elements of artificial intelligence, they can see the risks much earlier than they appear in documents — Tatyana Popova, Deputy General Director, IBS.
The second important principle is business engagement. <…> This is a question of how educated those involved in law-making are, of their understanding of the digital landscape — Alexey Nazarov, Partner, Head of Strategy and Operation, KPMG in Russia.