Ensuring Compliance in a Global World
Edited by Fabrizio Cafaggi
Chapter 9: Financial Private Regulation and Enforcement
Geoffrey P. Miller The topic of ﬁnancial private regulation and enforcement concerns the activities of private ﬁrms in the ﬁnancial sector which are involved in cross-border activities – Citigroup, Bank of America, HSBC, UBS, JPMorgan Chase, RBS, BNP Paribas, Barclays, Morgan Stanley, Goldman Sachs, Deutsche Bank, HBOS, Société Générale, Banco Santander, American Express, Nomura, and so on. For convenience of reference, I will refer to this type of organization as an ‘internationally active ﬁnancial services ﬁrm’ (IAFSF). This chapter will categorize different types of private regulation and enforcement applicable to IAFSFs and then offer some tentative thoughts about the underlying forces that may determine the phenomena under observation, with special reference to the HiiL Concept Paper, ‘The Added Value of Private Regulation in an Internationalised World? Towards a Model of the Legitimacy, Effectiveness, Enforcement and Quality of Private Regulation’. The principal subject of investigation will be the activities of IAFSFs under US law, but attention will be given to international standards and regulations as well. I. TYPES OF PRIVATE REGULATION AND ENFORCEMENT House Rules All IAFSFs operate according to internal rules governing the day-to-day administration of the company. Rules of organization deﬁne the roles of ofﬁces and allocate responsibility for operations. All large IAFSFs, like almost all large ﬁrms in any industry, take the form of complex corporate groups involving holding companies, subsidiaries, and subsidiaries of subsidiaries. These networks 263 Columns Design XML Ltd / Job: Cafaggi-Enforcement_of_Transnational_Regulation / Division: 09-ch /Pg. Position: 1...
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