Regulation is struggling to keep pace with how firms actually operate, leaving outdated rules, narrow definitions and strict‑liability frameworks misaligned with modern markets — all while outsourced CCOs, faster innovation and a shifting regulatory pendulum add new pressure on compliance teams to keep up.
At GAIM Ops Cayman 2026, Suzan Rose, Senior Advisor for Government & Regulatory Affairs at AIMA, unpacked this growing disconnect. The conversation explores where long‑standing rules no longer reflect current market behaviour, and how industry petitions and comment periods are becoming essential tools for modernising outdated frameworks such as strict‑liability rules, narrow regulatory definitions and knowledgeable‑employee criteria.
“It may look like a deregulation environment, but it’s really re‑regulation.”
— Suzan Rose, GAIM Ops Cayman 2026
Key topics from the conversation
- Outdated rules that no longer align with today’s trading practices
- Strict‑liability structures capturing firms acting on best efforts
- Narrow regulatory definitions that exclude clearly knowledgeable employees
- The rise of outsourced CCOs and the value of a fresh set of eyes
- Re‑regulation as the pendulum shifts back toward increased oversight
- How compliance teams keep up as markets, technology and investment types accelerate
A taste of the discussion
The interview explores the widening gap between regulatory intent and operational reality — from restricted‑period timing that no longer fits today’s deal flow to definitions that fail to capture the people actually doing the work. It also examines why outsourced CCOs are becoming more common, offering firms both operational support and strategic clarity at a time when innovation is moving faster than oversight.
As new investment types emerge and market cycles accelerate, the conversation turns to the risk of reactive rulemaking and the misconception that the current environment represents deregulation. Instead, the landscape appears to be shifting toward re‑regulation, with more changes expected as the year unfolds.
Watch the full conversation
Explore the full interview with Suzan Rose on our YouTube channel to hear how today’s regulatory gaps are shaping the future of compliance — and what firms should be preparing for next:
