Regulating by Numbers: The Trend Towards Increasing Empiricism in Enforcement Reporting by Financial Regulators

Law and Financial Markets Review, Vol. 9, No. 4, pp. 260-282, 2015

43 Pages Posted: 5 Feb 2016

See all articles by George Gilligan

George Gilligan

University of Melbourne - Centre for Corporate Law

Jasper Hedges

Australian National University, Research School of Social Sciences

Paul Ali

University of Melbourne - Law School

Helen Louise Bird

Melbourne Law School

Andrew Godwin

Melbourne Law School

Ian Ramsay

Melbourne Law School - University of Melbourne

Date Written: February 4, 2016

Abstract

This article discusses a trend towards increased empiricism in enforcement reporting by financial regulators that emphasises greater use of numerical indicators. The article examines how the Australian Securities and Investments Commission (ASIC), the UK Financial Conduct Authority (FCA) and the US Securities and Exchange Commission (SEC) report on the outcomes of their enforcement practices, with a particular focus on ASIC. The article begins with a brief introduction to the functions and structure of ASIC, the FCA and the SEC. It then describes how these regulators report on their enforcement outcomes and considers how recent national developments emphasising increased empiricism are likely to influence such reporting practices. Finally, the article provides a detailed case study on ASIC’s enforcement functions and quantitative approach to reporting of enforcement outcomes. The article closes by discussing what trends can be discerned regarding reporting of enforcement outcomes and what this could mean for regulators’ reporting practices in the future.

Keywords: financial regulators, enforcement, reporting, accountability, transparency

JEL Classification: G15, G18, K22, K42

Suggested Citation

Gilligan, George and Hedges, Jasper and Ali, Paul and Bird, Helen Louise and Godwin, Andrew and Ramsay, Ian, Regulating by Numbers: The Trend Towards Increasing Empiricism in Enforcement Reporting by Financial Regulators (February 4, 2016). Law and Financial Markets Review, Vol. 9, No. 4, pp. 260-282, 2015 . Available at SSRN: https://ssrn.com/abstract=2728071

George Gilligan

University of Melbourne - Centre for Corporate Law ( email )

185 Pelham Street, Carlton, Building 106
Victoria 3010
Australia
+61 3 8344 1079 (Phone)

HOME PAGE: http://www.law-cclsr@unimelb.edu.au

Jasper Hedges

Australian National University, Research School of Social Sciences ( email )

Canberra
Australia

HOME PAGE: http://www.anu.edu.au

Paul Ali

University of Melbourne - Law School ( email )

University Square
185 Pelham Street, Carlton
Victoria, Victoria 3010
Australia
+61 3 8344 1088 (Phone)
+61 3 8344 5285 (Fax)

HOME PAGE: http://www.law.unimelb.edu.au

Helen Louise Bird

Melbourne Law School ( email )

University Square
185 Pelham Street, Carlton
Victoria, Victoria 3010
Australia

Andrew Godwin

Melbourne Law School ( email )

185 Pelham Street
Carlton, Victoria 3053
Australia

Ian Ramsay (Contact Author)

Melbourne Law School - University of Melbourne ( email )

University Square
185 Pelham Street, Carlton
Victoria, Victoria 3010
Australia
+61 3 8344 5332 (Phone)

HOME PAGE: http://law.unimelb.edu.au/about/staff/ian-ramsay

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