Essays in Honor of Lance Taylor
Edited by Amitava Krishna Dutt
Chapter 18: The challenges facing international financial regulation
If the challenges facing international ﬁnancial regulation today may be best identiﬁed through the device of a hypothetical WFA, then: what tasks should be performed by such an Authority? What should be the legal foundation of WFA action? How are the tasks to be performed? 360 The North, the South and globalization What Tasks should be Performed by a WFA? A national ﬁnancial regulator performs ﬁve main tasks: authorization of market participants; the provision of information to enhance market transparency; surveillance to ensure that the regulatory code is obeyed; enforcement of the code and disciplining of transgressors; and the development of policy that keeps the regulatory code up to date (or at least not more than 10 metres behind the market in a 100 metre race). These are the tasks that now need to be performed at international level, ideally as if performed by a unitary WFA. For example, it is clear that criteria for authorization should be at the same high level throughout the international market: ensuring that a business is ﬁnancially viable, that it has suitable regulatory compliance procedures in place, and that the staﬀ of the ﬁrm are ﬁt and proper persons to conduct a ﬁnancial services business. If, in a liberal international ﬁnancial environment, high standards are not uniformly maintained, then ﬁrms authorized in a less demanding jurisdiction can impose unwarranted risks on others, undermining high standards of authorization elsewhere. Similarly, as far as the information function is concerned, the failure to attain not only...
You are not authenticated to view the full text of this chapter or article.
Elgaronline requires a subscription or purchase to access the full text of books or journals. Please login through your library system or with your personal username and password on the homepage.
Non-subscribers can freely search the site, view abstracts/ extracts and download selected front matter and introductory chapters for personal use.
Your library may not have purchased all subject areas. If you are authenticated and think you should have access to this title, please contact your librarian.