This paper discusses the cost and purpose of regulation in the higher education sector in the United Kingdom. Higher education is changing fast, facing competition from around the world and offering new economic drive in Britain's regions. Tuition fees bring much needed investment to this growing sector. This means a new challenge for funding councils--to free up universities and colleges so they can respond to student needs. Tax-payers, students, funding bodies and the Government need assurance about the quality, standards, and cost-effectiveness of this sector; three things grouped together under the label of "accountability." The author contends that there should be three core regulatory aims: (1) to develop better processes that reduce the cost of reporting and inspection; (3) to adopt risk-based regulation; and (3) to guard against "gold-plating" by universities and colleges in responding to regulatory demands. [Paper presented at the Annual Lecture of the Association of University Administrators (8th, Centre Point, London, October 12, 2005).]