Given the pace of change, regulators, like most mortals, may find it hard to remain up to date with these developments; we are faced with the daunting prospect of having to reflect on the most appropriate regulatory responses to technologies that we may not fully comprehend yet. In this regard, I favour a ‘back to basics’ approach.
Regulators should focus on regulatory principles that are risk-based rather than creating excessive rules-based regulations aimed at these technologies or products. For example, financial regulators do not regulate the Internet, biometric technology, or mobile devices. Regulatory intervention should be appropriate and applied to the underlying economic function.