Forms and paradoxes of principles-based regulation

Abstract

This article explores the political rhetoric and dynamics of principles-based regulation (PBR). It distinguishes four forms of PBR: formal, substantive, full and polycentric PBR. The article also identifies seven paradoxes which PBR may encounter. These paradoxes relate to interpretation, communication, compliance, supervision and enforcement, internal management, ethics, and trust. It is argued, however, that unfortunately for detractors of PBR, using detailed rules alone does not necessarily resolve these paradoxes.