Regulatory trust dynamics: exploring the role of actors and regulation

Trust in regulation and in the actors that define, implement, enforce and judge the regulation - what we call the regulatory regime - is crucial. Regulatees’ rule compliance depends on their level of trust and so does the uptake of services by beneficiaries, which is often put to the test due to high-impact events. This paper lays the foundation to study how trust in three key dimensions—regulatory actors, regulatory content, and enforcement procedures—influences overall trust in regulatory regimes. Trust in regulatory regimes is critical for addressing contemporary challenges such as financial stability, data protection, and food safety, all of which require effective governance frameworks. Drawing on a cross- country, cross-sector survey conducted across nine countries and three regulatory domains (data protection, finance, and food safety), two critical questions are aimed to be explored: (1) How does trust in individual components of a regulatory regime contribute to overall regime trust? and (2) Do these effects vary across stakeholder groups, such as regulatees and public actors? The paper develops a theoretical framework that conceptualizes trust as a multifaceted construct and situates it within the broader context of regulatory regimes. Preliminary hypotheses are formulated to guide future empirical analysis, focusing on the potential hierarchical influence of trust components and variations across stakeholder groups. The study highlights the relevance of trust in shaping perceptions of legitimacy and the effectiveness of regulatory regimes, while emphasizing the importance of tailoring regulatory approaches to the distinct priorities of diverse stakeholders. By advancing these theoretical and empirical foundations, this paper aims to contribute to a deeper understanding of trust dynamics in governance systems, offering practical implications for policy design, stakeholder engagement, and the fostering of resilient regulatory regimes.