News
Print Article

The paradox of independent regulatory consultants being trained by a regulator.

03/05/2024
I was interested to read that the JFSC is now training independent regulatory consultants employed by firms to conduct regulatory effectiveness testing and root cause analysis for the JFSC.

https://www.linkedin.com/posts/jersey-financial-services-commission_jenna-caunce-david-eacott-kerry-petulla-activity-7191791427368939520-cDJx?utm_source=share&utm_medium=member_desktop [image below]

The paradox of independent regulatory consultants being trained by a regulator lies in the potential conflict of interest and the question of true independence.

Regulatory consultants are expected to provide unbiased, objective advice to their clients. They are supposed to evaluate regulatory compliance and risks based on their expertise and independent judgment. However, if these consultants are trained by the regulator, it could potentially influence the consultant's judgment and compromise their independence. This is because the regulator's training might carry certain biases or perspectives that align with the regulator’s interests.

Having been trained by the regulator, the consultants might unconsciously adopt these biases, affecting their ability to provide truly independent advice. Moreover, there could be a perceived conflict of interest. Even if the consultants maintain their independence, the fact that they were trained by the regulator could create a perception of bias, undermining their credibility.

In conclusion, while training from regulators can enhance the knowledge and skills of regulatory consultants, it is crucial to ensure that this does not compromise their independence or create a perception of bias.

This paradox underscores the need for clear guidelines and safeguards to maintain the independence and credibility of regulatory consultants.

YOUTUBE-IMAGE JERSEY

The Team

Meet the team of industry experts behind Comsure

Find out more

Latest News

Keep up to date with the very latest news from Comsure

Find out more

Gallery

View our latest imagery from our news and work

Find out more

Contact

Think we can help you and your business? Chat to us today

Get In Touch

News Disclaimer

As well as owning and publishing Comsure's copyrighted works, Comsure wishes to use the copyright-protected works of others. To do so, Comsure is applying for exemptions in the UK copyright law. There are certain very specific situations where Comsure is permitted to do so without seeking permission from the owner. These exemptions are in the copyright sections of the Copyright, Designs and Patents Act 1988 (as amended)[www.gov.UK/government/publications/copyright-acts-and-related-laws]. Many situations allow for Comsure to apply for exemptions. These include 1] Non-commercial research and private study, 2] Criticism, review and reporting of current events, 3] the copying of works in any medium as long as the use is to illustrate a point. 4] no posting is for commercial purposes [payment]. (for a full list of exemptions, please read here www.gov.uk/guidance/exceptions-to-copyright]. Concerning the exceptions, Comsure will acknowledge the work of the source author by providing a link to the source material. Comsure claims no ownership of non-Comsure content. The non-Comsure articles posted on the Comsure website are deemed important, relevant, and newsworthy to a Comsure audience (e.g. regulated financial services and professional firms [DNFSBs]). Comsure does not wish to take any credit for the publication, and the publication can be read in full in its original form if you click the articles link that always accompanies the news item. Also, Comsure does not seek any payment for highlighting these important articles. If you want any article removed, Comsure will automatically do so on a reasonable request if you email info@comsuregroup.com.