[Archive]

Posted By: John

This concept is nothing new; in fact many industries employ this same type of concept from the steel, lumber, food, drug etc. Below is the formula in which they follow if you’re interested. The trick then becomes how do you implement the below into our hobby. I think its virtually impossible. But I will say I feel the below guidelines are the only true and effective way of regulating any industry. All other ways are essentially non enforceable or pointless.


1.These regulatory firms are non-profit, they garner what little income they do receive which goes to employ their staffs and cover expenses, from the very companies in which they are in a way policing. Budgets, incomes & officers are also set buy a board of directors set by the companies who particapte in the system.


2.In return these companies which in this case would be (Dealers, Graders, Auction Houses) who financially support these regulatory firms get their so called “Good House Keeping” seal of approval. Although its much more complex than that for the above types of industries, and the benefits are different.


3.As to protect the best interest of the parties that are being regulated once again (dealers, auction houses, graders) these companies or who ever agrees to be a part of the non-profit organizations regulating, is allowed to appoint board members to regulate and police the very firm they have agreed to be audited by. Generally these board members are very successful retired industry people within their field. Board members are generally changed every 2-3 yrs.


4.How does the regulatory non-profit firm work? They in a fact establish with the people they are watching over and enforce a list of rules or “code of conduct” if you must. The non-profit firms carry out routine inspections and surprise inspections and report cards are kept. Those companies that have fantastic report cards obtain many benefits to being policed in this manner. Those who don’t are eventually not included in these benefits any more, or are given ample time to correct. It is also important to note that not all of the above industries comply or partake in this system, only the ones who would like to benefit from it.


5.Employees or inspectors for the non-profit regulatory company. Technically cannot be involved or receive financially gain from the industry in which they are regulating. They also have to draw a very direct line regarding relationships etc. No gifts, fancy dinners and no business dealings with the company they inspect etc. All of this is set buy the companies that have chosen to be policed, board members. All of the above are viewed as major conflicts of interest. You can only imagine if a buddy of Dave Forman’s was inspecting PSA even if nothing was going on other than the connection, the implications and or potential for financial gain over there competitor would be unacceptable to anyone who is a part of the system. Also any findings via PSA could be disputed and therefore would lose credibility.


6.Yearly meetings are held between the employees & officers of the regulatory firm and the board members from the appointed companies that the regulatory firm manages.


There are some other nuances to the above system, which I would gladly elaborate on if you would like that should put you in the right direction. All in all don’t think your idea is a bad one Jim, in fact others before you have had similar ideas. The issues facing you how do you find un-biased parties who have very little dealings within such a small industry as this, the keys are un-biased and with little or nothing to gain from the situation other than their paycheck.

I said yesterday in my first response, nice concept but to do it right will take time money and boatload of effort. Even Leon in a way echoed that same view that finding the people willing to devote this time, money etc. will be a very tough job.

Take what you want from the above, good luck in your project.