What is a surrogate regulator?

A surrogate regulator is an entity or mechanism that assumes regulatory functions in the absence of formal regulation, often stepping in to ensure compliance or oversight in a specific area. This can occur in situations where traditional regulatory bodies are lacking, ineffective, or unable to address certain issues. Surrogate regulators may arise from industry self-regulation, non-governmental organizations, or even market forces, aiming to maintain standards and protect interests. Their effectiveness can vary, and they may face challenges in accountability and enforcement.