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It appears to me the the occupants of the Cube must have found an old Stasi operating handbook and thought to themselves, 'hey, this looks like a jolly wheeze, lets put the contents into practice'.

Joking aside you really couldn't make it up.

I'll say this again and again, for a minimum of six months, place everyone in the Regulatory system into REAL WORLD employment.
They should work for the firms that countenance bullying and discrimination, and a target driven ethos. The firms that put employees under so much pressure that they work excessive hours often unpaid.
Try to run a law firm whilst having to keep up with the almost weekly release of more regulatory compliance (from all directions), and of course making money to keep the firm afloat.

Only once this has taken place, and they have a fuller understanding of the Profession they regulate, will they have any rightful authority over the 'regulated community'.

I doubt this will be up for long but I strongly believe that true leadership can only come from experience.

Fear Nought.