That is not what Treasury Board is asking. It's not a requirement of a regulator to actually know the sector they're regulating at all. There's only so much you can do through a formal consultation process to actually get that understanding. I knew that as a regulator myself. I didn't know the industries I was responsible for regulating to the extent I should have.
Ultimately, you end up with much better regulation if the person drafting the regulation or instructing the drafters really understands the sector. That needs to be a requirement.