RSH to engage sector on potential updates to economic standards in coming months

But Ms MacGregor recognised that the sector had experienced “a load of changes since 2015”, when the Governance and Financial Viability Standards were introduced.

“So, over the coming months, we’ll continue to reflect on how we best regulate for the future, whether there are areas we might refresh within our economic standards, our broader regulatory principles, to ensure that the next regulatory cycle is agile, assertive and modern,” she told attendees.

Ms MacGregor added that it will be for her successor to “take those discussions forward”.

She first hinted at these plans last year, when she said the regulator would review potential changes to the Governance and Financial Viability Standards over the next two to three years.

Ms MacGregor also said the RSH had worked “really constructively with the sector” and that “objectives are aligned”, but warned that this did not mean the regulator was “soft”.

“I never, ever think we’ll be soft just because we think we’ve got aligned objectives,” she added.

When asked what the sector will look like in 10 years’ time, Ms MacGregor said she expected there would be further mergers and consolidation, as well as new entrants.

“I think what you will see a bit more of, and there’s been some of it already, is…particularly small or medium-sized providers starting to think about whether or not they can deliver more if they are a little bit larger and a bit more resilient to shocks,” she said.

On new entrants, she said this would boost delivery and “keep the sector on its toes”.

“I don’t think there’s anything by way of new entrants that is the silver bullet that’s going to be game-changing, but I think it will be a slightly more diverse sector,” Ms MacGregor added.

Earlier this month, the outgoing chief executive highlighted the role that “dominant individuals” can play in organisations experiencing difficulties.