Consumer Protection Through Soft Law in an Era of Global Financial Crisis

The Changing Landscape of Global Financial Governance and the Role of Soft Law (F. Weiss and A. Kammel, eds. Brill Nijhoff) 2015

28 Pages Posted: 18 Apr 2016 Last revised: 11 Apr 2019

See all articles by Ruth Plato-Shinar

Ruth Plato-Shinar

Netanya Academic College, Israel

Rolf H. Weber

University of Zurich - Faculty of Law

Date Written: 2015

Abstract

The global financial crisis triggered a vast number of new laws and regulations at international level, including initiatives that can be classified as "soft law". The legitimacy and efficacy of these new norms are subject to intensive academic and political debates. At the same time, soft law is changing its role and is gaining new importance. The article looks at the adapted legal environment in financial markets from a consumer protection angle.

At first glance, soft law does not seem to provide for adequate measures protecting depositors and investors. Financial consumer protection requires enforceable regulation, but soft law, by its very nature, does not encompass this feature.

Nonetheless, soft law should not be construed as having no importance with regard to financial consumer protection. The article suggests that soft law does have important protective potential, both in terms of the mechanisms that it provides, as well as in terms of its substantive content.

Keywords: soft law, consumer protection, global financial crisis, financial regulation, dispute settlement, ADR Directive, Financial Services, G20 High-Level Principles, BCBS

JEL Classification: G15, G18, G21, G22, G23, G24, G28, K23, K33, F30, F42

Suggested Citation

Plato-Shinar, Ruth and Weber, Rolf H., Consumer Protection Through Soft Law in an Era of Global Financial Crisis (2015). The Changing Landscape of Global Financial Governance and the Role of Soft Law (F. Weiss and A. Kammel, eds. Brill Nijhoff) 2015, Available at SSRN: https://ssrn.com/abstract=2761734

Ruth Plato-Shinar (Contact Author)

Netanya Academic College, Israel ( email )

1 University St
Netanya, 4223587
Israel

Rolf H. Weber

University of Zurich - Faculty of Law ( email )

Rämistrasse 71
Zürich, CH-8006
Switzerland

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