Professor Niamh Hardiman:

I do not know of comparative metrics used. Among the principles of good regulation are two essentials, the first of which is expertise. It is important to ensure the regulatory system has strong expertise in the area it is trying to oversee because regulators are there to stop people from doing things they want to do. When people want to do things, they will try to find ways around the rules. Recently in the Financial Times, for example, Ms Gillian Tett commented on the fact that the stress tests for American banks were possibly too lenient even still because the regulatory system was imposing stress tests that were too predictable. The financial institutions and their professional advisers are organising their reporting systems to match the tests that they know are going to be used for them. Therefore, knowledge of the systems in order that regulation can be tough, unpredictable and not pre-arranged is very important.

The second essential is relational distance. Analysts of regulation have suggested relational distance is very important, that there should not be close personal or professional relationships between the regulator and those regulated. Relational distance must be maintained, but expertise has to be prioritised. That is difficult to pull off. The Irish-----