The first relates to the appropriate balance between fixed rules and discretion – a question familiar from monetary and fiscal policy. In both cases, we have learned that fixed rules offer distinct advantages. In fiscal policy, automatic stabilizers have proven helpful in mitigating the amplitude of cyclical fluctuations. They trigger fiscal support when needed in a timely and predictable way.
While much has changed in the past decades, there is one rule – a golden one, perhaps – that still holds true: same business equals same risks equals same requirements. Moreover, the regulatory response needs to be technologyneutral and principle-based in order to be future-proof.