HKSI Paper 1 Practice Exam 2026 - Free HKSI Certification Practice Questions and Study Guide

Regulatory independence means regulators operate without direct government influence in rulemaking, enforcement, and oversight. This separation helps decisions reflect evidence, market needs, and long-term credibility rather than short-term political considerations, which protects investors and maintains trust. If the committee proposed that regulation should be independent of the government, it aligns with this principle, so the statement is true. The other options imply either no independence, ambiguity, or a restriction that doesn’t fit the general idea of regulatory design.