The Pandemic Response in the UK in the Context of Corporate and Financial Law – within and without Law

Abstract

This short paper focuses on the response to the pandemic in corporate law and capital markets regulation and the role that the law played in it.

First, the pandemic has brought the interests of stakeholders into more direct focus in corporate governance than was previously the case. But questions remain as to whether this represents only a temporary adjustment in response to the crisis or, alternatively, a more enduring trend. And if the latter, it prompts consideration of the appropriate techniques for stakeholder engagement and participation in corporate governance.

Second, the pandemic has disrupted the relationship between financial firms and their customers and the operation of capital markets. Conduct regulators have responded with a series of interventions. We examine whether those interventions are ad hoc or, alternatively, if they can be linked to key regulatory trends that emerged in the wake of the 2008 global financial crisis. This approach provides a basis for assessing the implications of the pandemic for the future trajectory of conduct regulation.

Conclusions are then drawn on the way forward and the likely role that the law will play.

Keywords: COVID, pandemic, corporate law, stakeholders, capital markets, corporate governance, financial regulation