Beyond Deregulation: How To Make Principles-based Regulation Work In Practice

In our recent article, Why deregulation isn't the answer: re-focusing the value of good regulation, we explored how calls to "cut red tape" usually target the wrong enemy. It is not regulation itself that constrains growth, but poorly designed regulation - regimes that are overly prescriptive, slow to adapt or misaligned with the outcomes society expects. That article made the case for holding the line on high‑quality, values‑driven regulation, stressing that abandoning standards risks a "race to the bottom" that ultimately harms innovation, competitiveness and public trust.

This article takes the conversation a step further. We noted previously that principles‑based or values‑driven regulation is sometimes a better answer than prescriptive rulebooks - yet the term is frequently used without clarity. What exactly do we mean by principles‑based regulation? When does it work well and what design choices ensure it remains fair, enforceable and effective? And, crucially, how does it