Week 3A: Regulatory techniques Flashcards
TRUE or FALSE: speed limits are a type of command and control Regulation
-true
Define ‘Command and Control’ Regulation
-spec. , prescrip. , legal rules
-little or NO room for var. interpret.
Explain the strengths of ‘Command and Control’ Regulation
-legal certainty for the pub. regul. + regulatees
Explain the weaknesses of CAC regu.
-too prescriptive + det. rules can be quick. outdated
-form. ,
-misses the point/principle behind, too strict
-creat. compl. –> firms find legal loopholes, so focu. on details
-DETER. innovative problem solving
List examples of CAC regulations
-Speed Limits
-Covid-19 Lockdown rules
-MiFID II requirement to authorize inv. firms
- u have to get fucking. authorised
What are principles based regulation?
-general, purpose-based rules
-can
NB: may be furt. rules or guidance 2 actualise
NB: act as backstop
TRUE or FALSE: financial service providers do not directly have a duty of care to clients in Dutch law
-FALSE: dutch financial Supervision Act
Give an example of principles-based regulation
duty of care in dutch financial supervision act
Explain the strengths of principle-based regulation
a strength is that there is a focus on:
-ensur. that regulatees comply with the purp. or outc. of the reg. rather than over tech. focus
Explain the weaknesses of principles-based regulation
-doesn’t work with peopl who have no principles
-cons. de. on cap. + skill of regulat. + regulatee
(have to think about principles)
Explain what meta regulation is
1.-reliance on the (int.) mana. of firms
-delevop. of own systems to ensure compliance
-demonst. that compliance
2 pub. regul.
2.-Management based
Explain the strengths of meta regulation
-companies’ policies, fit the way they run the act. + fit interests
-engangement of management=
-industry trust
-ince. to pursue those public goals
-LEGITIMACY TO MARK. GOV.
Explain the weaknesses of meta-regulation
-self-de. internal systems and process. may be designed 2 achieve firms own goals rather public reg.
-lack of sec.
-over.reliance on firms having the approp. cul. and the right incentives 2 pursue pub. goals and
+public reg. having suff. skills, industry experience + pol.
- Hard to oversee
TRUE or FALSE: EU companies must integrate due dilig. into their policies?
-TRUE
-Corporate Sustainability Due Diligence Directive
TRUE or FALSE: EU due dilligence policy constitutes a form of meta regulation
- TRUE
-Companies must integrate due diligence in all their relevant policies and
risk management systems and have in place a due diligence policy that
ensures risk-based due diligence
Explain what enrolment of gatekeepers mean
-pub. reg. involve others
-usually private act. as gatekeepers
-2 control if regulatees comply
Explain what enrolment of gatekeepers means
- Public regulators inv. others/delag.
-commonly private actors- in the role of regulat.
Explain the strengths of enrolment of gatekeepers
- inc. reg. capacity
-deleg. control
Less costly for administrative bodies
-interna. into the trade
Explain the weaknesses of the enrolment of gatekeepers
-inc. structures of gatekeepers may not always be alig. with regula. goals goals
-Opportu for gaming reg. rules
Is the digital services act is a form of enrolment of gatekeepers? exp. your answer
YES
-req. online platforms to susp giving people who post manifestly ill. content, from platform
Give examples of enrolment of gatekeepers
-twitter banning trump for spreading disinformation
-Dig Services Act
Explain what risk-based regulation is
-PUBLIC regu.
-syst. identify diff. risks 2 their objectives
-focus resources and reg. efforts on addre. most serious risks
-ranking made explicit + transp. 2 those within the pub. regulat. org. and those regulated
Explain the strengths of Risk-based regulation
- prioritisation
-clear framework
-clear what to aim for focus - Transparancy
-well-articulation of priorities - Very systematic
What are the weaknesses of risk-based regulation?
1.Critical. of risks are often contest.
-idea of what det. critic. of risk might change
-hard 2 agree + define
2. Pressure on pub. reg. to show in control
-while having to manage at once conflicting dem. of:
-Risks
-Resources
-Reputation
