We are all fighting with the same problems and for the same rights. That's why we need to work on the regulations jointly and cover as much as possible. And consequently, on local level, as a compliance officer, why would you need to write different local policies when it's possible to concentrate on the overarching regulation and create standards directly from it?
The movement to best approach global problems has been ongoing for a long time. G20 can be seen as the best example of creating regulation beyond borders to date. Leaders of the strongest financial and business systems of the world gather and discuss global issues making agreements between countries regarding the approach in order to achieve the desired outcome. This is a great example of how regulation should step by step aim at becoming global.
This year, at the 50th annual Davos, cyber threats and climate emergencies were on top of the agenda, among other global problems faced by humanity. Just like cybersecurity, certain areas of regulatory activity, such as data protection, anti-money laundering, have one trait in common: national regulators are required to address activities that happen across jurisdictions. Human trafficking, drug trafficking, and data exporting are by nature multi-jurisdiction problems and as such, they are global issues.
More than ten years after the financial crisis major financial regulators are still working to improve transparency and accountability within the financial system, often with differing approaches, but collectively with a view to preventing the re-occurrence of the global financial meltdown. However, the divergence in transatlantic rules is symptomatic of the counterargument to regulation - economic competitiveness. With the imminent occurrence of Brexit, the consistency of standards will naturally be the focal point of talks, with the fear of a regulatory race to the bottom in the minds of European regulators.
Regulators are always seeking to find a balance between controlling everything to avoid major fails but at the same to be lenient with the relaxed ecosystem where a business is not pressed and can function. As taxation, regulations are all limiting businesses to grow. Thus, in some countries, it is very tricky to start and lead a business, especially a small one as simple accounting is going to press you a lot. The idea of creating aligned global regulation is also pursuing the goal of putting everyone in equal conditions providing similar ground to every business around the world.