Which statement best describes the proposed regulatory approach?

• A. Regulation should be practitioner-based
• B. Regulation should be government-led
• C. Regulation should be market-driven
• D. Regulation should be self-regulatory

Answer: (A)

Regulation based on the practical experience of those who work in the industry tends to be more implementable and credible. When rules are shaped by practitioners, they reflect real-world processes, workflows, and risks, making compliance more straightforward and ensuring that standards line up with what professionals can actually do in daily practice. This approach also reinforces accountability through professional codes and ongoing peer enforcement, which can be more persuasive to the market than rules written without frontline insight.

Considering other approaches, government-led regulation can be thorough but may lag behind rapid innovation and be influenced by political cycles. Market-driven regulation relies on competition and price signals but can fail to protect consumers or address complex conduct risks where information asymmetry exists. Self-regulation without strong external oversight can lead to inconsistent enforcement or conflicts of interest.