Established by the Brazilian Federal Government, through Decree #12,150, published in the Federal Official Gazette on August 08, 2024, the Better Regulation Strategy – National Strategy for Regulatory Improvement (ebook) aims to make the preparation, implementation, monitoring, and review of the Brazilian regulatory framework more efficient, in addition to promoting transparency and society's participation in the administrative regulatory process.

Provided for within the scope of the Ministry of Development, Industry, Commerce, and Services (MDIC), the Better Regulation Strategy also aims to train regulators and review current rules, to simplify language, ensure objectivity and reduce bureaucracy inherent to this process.

The Strategy aims to implement these improvements over the next ten years. The first step, scheduled for 2024, is the creation of the Single Regulation Portal, to ensure transparency and gather information on good practices and regulatory policy for the public and private sectors.

The proposal of unification aims to reduce the asymmetry in the procedures, processes and knowledge existing in the Brazilian regulatory sector, which currently has more than 200 regulatory bodies at the federal level alone, including secretariats, committees, among other collegiate bodies.

In addition, the MDIC, in partnership with the Federal Attorney's Office, will launch a document later this year to guide regulators in the use of the regulatory SandBox. The instrument – still little explored and with a considerable impact on the promotion of innovation – enables a company to test, in a given space and for a certain period of time, innovative products and services, under the monitoring of the responsible regulatory entity. All this before the novelty was even presented to the public. Thus, the regulatory entity can, preliminarily, assess whether it is necessary to regulate the product/service, guiding the company on the best way to do it.

The initiative of the Brazilian Federal Government is in line with similar movements that are already taking place in other countries, such as the United Kingdom, with the Better Regulation Framework¹, and the United States with the Regulatory Reform².

For industries operating in regulated sectors, the news comes at a good time. Improving regulatory processes encourages competition and innovation, as it promotes an increase in the quality of administrative decisions.