[Edit—on further investigation this seems to be a more UK-specific point; US regulations are much less ambiguous as they take a rules-based approach unlike the UK’s principles-based approach]
It’s interesting to note that financial regulations sometimes possess a degree of ambiguity and are subject to varying interpretations. It’s frequently the case that whichever institution interprets them most stringently or conservatively effectively establishes the benchmark for how the regulation is understood. Regulators often use these stringent interpretations as a basis for future clarifications or refinements. This phenomenon is especially observable in newly introduced regulations pertaining to emerging forms of fraud or novel technologies.
[Edit—on further investigation this seems to be a more UK-specific point; US regulations are much less ambiguous as they take a rules-based approach unlike the UK’s principles-based approach]
It’s interesting to note that financial regulations sometimes possess a degree of ambiguity and are subject to varying interpretations. It’s frequently the case that whichever institution interprets them most stringently or conservatively effectively establishes the benchmark for how the regulation is understood. Regulators often use these stringent interpretations as a basis for future clarifications or refinements. This phenomenon is especially observable in newly introduced regulations pertaining to emerging forms of fraud or novel technologies.