In view of the Madoff scam, is it time to adjust our thinking towards our financial regulators, asks James Murray and Wilson Sy: Many people expect financial regulatory agencies (regulators) to protect them from unethical actions in the markets. They also expect regulators to take responsibility for financial system stability. Neither of these expectations are within the current restricted role of financial regulators. The role of regulators is largely limited to the legalistic oversight of compliance and enforcement of existing regulations. Hence there is a gap between what we think regulators should deliver and what regulators are required to deliver. This gap needs to be bridged. more