This actually is a policy problem. By that i mean that the expense of regulation has no natural external driver. After all, once an individual has the authority to regulate, or more specifically to chose a rule for all participants to follow, his core job is over. Participants can then be expected to complain when transgressions arise.
Again the individual can assume the power of judgement and resolve the issue and it is over.
Where all this fails is that it allows for the expansion of make work in the form of information gathering not asked for. This generates staffing. Failure to decide also promotes studies and all that. This is typical bureaucratic creep that changes nothing except to produce jobs for the boys.
In time you end up with a mass of folks writing memos to each other while attempting to squeeze meaning out their tasks.
It takes hard nosed management to stop this creep.