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This paper recognises and takes as given there is a recurring cycle of regulatory failure, regulatory reform. It also accepts the arguments of a small number of authors that there are flaws within the regulatory mechanism which contribute to the perpetuation of the regulatory failure, regulatory reform cycle. However, this paper argues that these flaws are but a symptom of more deeply seated problems. The regulatory framework is weak in very fundamental and strategic areas including the nature of legislation and accounting standards, enforcement and overall administration. The fact that these weaknesses are not adequately addressed or rectified suggests that regulatory failure is by design. It is, therefore, contended that until the rhetoric is replaced with a commitment to genuinely enforceable regulatory measures, the regulatory failure, regulatory reform cycle will continue.