It must be forward looking, connected, proportionate, predictable, transparent and agile: Forward-looking because, although we need to learn from history, we need to prioritise regulating for the future, especially as the pace of change means it quickly becomes the present; Connected because, in a European and global financial market, being more connected with market participants – whether firms, other regulators, consumers and investors – is essential to better understand risk, and to support agility and foresight in how we regulate; Proportionate, because we want regulation to address the harm or failure on which it is aimed without causing unintended consequences.
There needs to be  4/7  BIS - Central bankers' speeches  an effective and disciplined consideration and weighing of the costs, benefits and trade-offs involved in any regulatory intervention so that we avoid creating distortions and sub-optimal outcomes; Predictable, because consumers, investors and firms need to understand what we're trying to do, and what it is we expect others to be doing; Transparent because building trust in the financial system requires that market participants are able to see that regulators are doing their job and regulations are working as intended.