Oct. 23, 2023
When regulatory authority over a particular issue or industry is fragmented across multiple agencies, it can lead to unfair and inconsistent treatment. Some examples of how regulatory fragmentation causes problems: Redundant or overlapping regulations from different regulators creates confusion and unnecessary compliance burdens. Contradictory or inconsistent rules from different agencies make compliance extremely difficult. Regulatory arbitrage where companies shop for most favorable regulator. Critical regulatory gaps can emerge if responsibilities fall between cracks. Lack of coordination impedes information sharing between regulators. Can undermine comprehensive approach when each regulator focuses narrowly. Increased compliance costs as regulated entities deal with multiple regulators. Competitive imbalances as agencies impact different segments of an industry differently. Jurisdictional disputes between regulators with shared interests. Consolidating related regulatory functions into unified agencies or improved interagency coordination mechanisms could help address fragmentation problems. But political and bureaucratic resistance makes this challenging to achieve in practice. Sent with Proton Mail secure email.