Indeed, supervisors have come a long way from being mere regulatory compliance enforcers to becoming risk-assessors. New supervisory tools aim to instil a forwardlooking and calibrated supervisory approach based on principles of proportionality and risk perception. This approach involves constant focus on emerging risks and the business models at the Supervised Entities (SEs). 4.
This principle might also be read as implying that the “burden of proof” should rest on those who want to establish global, as opposed to local, rules and institutions. Second, it is not straightforward to set common rules in complex and innovative fields such as finance.