Traditional supervision has several shortcomings. Although certain regulatees need a deterrent approach, most regulatees are willing to comply to public regulations. Some of them, especially the bigger regulated organizations, are responsive to new forms of regulation. For these companies, a traditional command and control approach is not very effective because it does not recognise the company’s own capabilities and may undermine the intrinsic motivation.
This guidance document introduces Compliance Management System (CMS) supervision as a method to improve compliance within regulated companies. It is designed to help supervisors shift their focus from observing compliance to ensuring compliance. The document provides a flow chart to determine when CMS supervision is feasible and how to implement it. CMS supervision encourages companies to self-monitor, self-correct, and learn from violations, with public supervisors assessing the CMS's effectiveness. The guidance is intended for inspectors, policymakers, and managers to develop CMS supervision policies and strategies.