AMP Admits Lying to ASIC., page-15

The problem is that all of the regulators are "forward bribed" by knowing that there is a well paid job with significant benefits waiting for them if they stay friends with those they regulate. So the regulators want to look competent, but in the backs of their minds they don't want to throw the execs in jail, and risk missing out on that bribe in the future.

Regulatory capture is so simple when you have lots of money to throw around, and nobody has banned this bribery. So the problem will not be solved until regulators have their future hourly income capped so that they cannot be "future bribed".