Theoretical Perspectives on Regulatory Enforcement

Author:

Gray Joanna,Fennell Elspeth

Abstract

This article argues that a more broadly based understanding of the processes of the enforcement of regulation and compliance needs to be developed. It highlights aspects of two recent newsworthy cases of non‐compliance with financial regulation. It concludes that future practice needs to be informed by research from a wider range of theoretical disciplines than have been employed in the study of financial regulation hitherto.

Publisher

Emerald

Subject

Law,General Economics, Econometrics and Finance

Reference34 articles.

1. Civilising the Law — The Use of Civil and Administrative Proceedings to Enforce Financial Services Law

2. The Relevance of White Collar Criminology to Financial Services Regulation

3. The de-regulatory changes to the Financial Services Act 1986 wrought by the Companies Act 1989 had at their heart the use of the one of neoclassical microeconomics' favourite tools - cost-benefit analysis. The discipline of cost-benefit analysis now informs rule-making (see Sch. 2(3A) and Sch. 7(2A) Financial Services Act 1986) and rule application (the modification and waiver provisions contained in s. 63B FSA 1986) as well as the thinking of the regulatory bodies themselves - see SIB Annual Report 1993/94, p.46and comments in the Large report: Making the Two Tier System Work, SIB1993. IMRO commissioned extensive cost-benefit analysis, the results of which are published in Frank and Meyer (1989) 'Risk, Regulation and Investor Protection: The Case of Investment Management',Clarendon Press.

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