For instance, there is a well-known observation about the “regulatory capture”, that is, the regulated entities, in the organised form, have a tendency to capture the regulator to protect their own interests. It is also argued that the SROs protect the interests of the members if they are in conflict with interests of the system.
In this regard, I find that the model for effective regulation, brought out in the Report of the SRO Consultative Committee of the International Organization of Securities Commissions in May 2000, is useful. Perhaps these issues will also be addressed in this Conference as part of the way forward.