Regulatory bodies will soon be, er, regulated. New federal laws will set rules for how the regulators conduct themselves.

The laws will cover the Australian Prudential Regulation Authority (APRA), the Australian Securities and Investments Commission (ASIC), the Australian Competition and Consumer Commission and more than 160 other bodies.

The move stems from a review of the corporate governance of statutory authorities and office-holders by former Rio Tinto and Westpac Chairman John Uhrig. It will also fulfil a 2001 promise made by PM John Howard during his election campaign.

Finance and Administration Minister Nick Minchin said last week that the Government has endorsed the governance principles and templates… “and as a result ministers will assess statutory authorities and other bodies within their portfolios against these principles”.

“These measures will give clients greater certainty in their dealings with agencies and greater confidence to raise issues of concern,” he said.

Mr Uhrig discovered a lack of effective governance in several authorities due to such factors as uncertain boundaries in delegation, unclear relationships with ministers and portfolio departments, and problems with accountability.

The report recommends two templates: one in which governance is provided by executive management, and another in which it is provided by a board.

Senator Minchin said the Government has accepted Mr Uhrig’s comments that many statutory bodies have had murky accountability for some time. It has subsequently agreed to issue formal and public ministerial statements of expectation.

But the Government’s rejection of Mr Uhrig’s recommendation to establish an inspector-general of regulation to investigate the systems and procedures used by regulatory authorities has angered consumer and business groups.

The Business Council of Australia says such a position should have been created to make it easier for consumers to make complaints against regulators.