Systemic Regulators’ Accountability to Parliaments: Advantages for Stability of Global Financial Markets
RESPONSES TO THE 'REFORMING FINANCIAL MARKETS' CONSULTATION, HM Treasury, ed., London: HM Treasury
12 Pages Posted: 1 Nov 2009 Last revised: 12 Jan 2010
Date Written: September 30, 2009
Abstract
This response to the 2009 UK White Paper on ‘Reforming Financial Markets’ argues for stronger democratic oversight of regulators and for regulatory diversity in order to reduce ‘market herding’ and the consequent systemic risks. In the context of hitherto weak democratic accountability and political challenges, international networking of regulators and those they regulate has resulted in convergence of regulatory thinking and standards - creating groupthink, common ‘blind spots’ and systemic vulnerability. The antidote, regulatory diversity, would correspond to the strategy of re-politicisation of financial market regulation, and democratic steering of regulatory agencies, displacing the currently dominant notion of financial market regulation as a purely technical, expert, ‘insider’ discourse. If it is too much of a paradox for policy-makers and market participants that international cooperation in pursuit of global stability must include making space for some regulatory diversity, then we may expect re-plays of recent stressful events.
Keywords: Financial markets, Regulation, Systemic stability/risk, Convergence/diversity, Democratic oversight
JEL Classification: A14, D81, F3, G15, G21, G38, H41, K22, K42
Suggested Citation: Suggested Citation
Do you have negative results from your research you’d like to share?
Recommended Papers
-
Legal Origins and Modern Stock Markets
By Mark J. Roe
-
Culture, Law, and Corporate Governance
By Amir N. Licht, Chanan Goldschmidt, ...
-
Shareholder Protection: A Leximetric Approach
By Priya Lele and Mathias Siems
-
The Evolution of Labour Law: Calibrating and Comparing Regulatory Regimes
By Simon Deakin, Priya Lele, ...
-
By Sofie Cools
-
By Sofie Cools