Shedding Light on EU Financial Regulators: A Sociological and Psychological Perspective

54 Pages Posted: 14 Dec 2016 Last revised: 11 Jun 2019

See all articles by Giuliano G. Castellano

Giuliano G. Castellano

The University of Hong Kong, Faculty of Law

Genevieve Helleringer

University of Oxford - Institute of European and Comparative Law; ESSEC Business School; European Corporate Governance Institute (ECGI)

Date Written: December 13, 2016

Abstract

The article adopts a socio-psychological perspective to approach financial regulation in the European Union. While behavioural approaches to finance have expanded the understanding of markets’ dynamics, the analytical tools of behavioural sciences have been seldom applied to financial regulators. Through the lenses of social-psychology, the article fills this gap and explores how financial regulators ‘think’. After offering a typology to navigate through the multi-layered EU architectural framework for financial markets regulation and supervisions, the socio-psychological dimension of selected EU institutions is examined by looking at their constitutional and legal framework. To this aim, the article focuses on the group dynamics within the primary decision-making organs of the European Commission, the European Central Bank, and the European Supervisory Authorities. These organs are considered as groups of individuals and their behaviours analysed through the prism of the ‘unified theory of social relations’. This approach is deployed to offer new insights over current tensions between Eurozone and non-Eurozone countries, and sheds new light over the fractures, within regulators, generated by the UK’s decision to leave the EU.

Keywords: Financial Regulation, Supervision, European Union, Common Interest, Multi-Level Governance, European Supervisory Authorities, EBA, ESMA, European Central Bank, Commission, Social-Psychology, Theory of Social Relations, Social Behaviors, Behavioral, Collective Decision-Making, Brexit, UK, Eurozone

JEL Classification: K22, K23, K33, D70, D73, D78, F15, F55, F65, G18, G28, N24

Suggested Citation

Castellano, Giuliano G. and Helleringer, Genevieve, Shedding Light on EU Financial Regulators: A Sociological and Psychological Perspective (December 13, 2016). Hastings International and Comparative Law Review, Vol. 40, No. 1. Available at SSRN: https://ssrn.com/abstract=2884831

Giuliano G. Castellano (Contact Author)

The University of Hong Kong, Faculty of Law ( email )

Pokfulam Road
Hong Kong, Hong Kong
China

Genevieve Helleringer

University of Oxford - Institute of European and Comparative Law ( email )

St Cross Building
St Cross Road
Oxford, OX1 3UL
United Kingdom

ESSEC Business School ( email )

3 Avenue Bernard Hirsch
CS 50105 CERGY
CERGY, CERGY PONTOISE CEDEX 95021
France

European Corporate Governance Institute (ECGI) ( email )

c/o ECARES ULB CP 114
B-1050 Brussels
Belgium

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