Week 3A: Regulatory techniques Flashcards

1
Q

TRUE or FALSE: speed limits are a type of command and control Regulation

A

-true

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2
Q

Define ‘Command and Control’ Regulation

A

-spec. , prescrip. , legal rules
-little or NO room for var. interpret.

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3
Q

Explain the strengths of ‘Command and Control’ Regulation

A

-legal certainty for the pub. regul. + regulatees

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4
Q

Explain the weaknesses of CAC regu.

A

-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 outdated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

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5
Q

List examples of CAC regulations

A

-Speed Limits
-Covid-19 Lockdown rules
-MiFID II requirement to authorize inv. firms
- u have to get fucking. authorised

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6
Q

What are principles based regulation?

A

-general, purpose-based rules
-can

NB: may be furt. rules or guidance 2 actualise
NB: act as backstop

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7
Q

TRUE or FALSE: financial service providers do not directly have a duty of care to clients in Dutch law

A

-FALSE: dutch financial Supervision Act

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8
Q

Give an example of principles-based regulation

A

duty of care in dutch financial supervision act

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9
Q

Explain the strengths of principle-based regulation

A

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

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10
Q

Explain the weaknesses of principles-based regulation

A

-doesn’t work with peopl who have no principles
-cons. de. on cap. + skill of regulat. + regulatee
(have to think about principles)

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11
Q

Explain what meta regulation is

A

1.-reliance on the (int.) mana. of firms
-delevop. of own systems to ensure compliance
-demonst. that compliance
2 pub. regul.

2.-Management based

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12
Q

Explain the strengths of meta regulation

A

-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.

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13
Q

Explain the weaknesses of meta-regulation

A

-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

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14
Q

TRUE or FALSE: EU companies must integrate due dilig. into their policies?

A

-TRUE
-Corporate Sustainability Due Diligence Directive

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15
Q

TRUE or FALSE: EU due dilligence policy constitutes a form of meta regulation

A
  • 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
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16
Q

Explain what enrolment of gatekeepers mean

A

-pub. reg. involve others
-usually private act. as gatekeepers
-2 control if regulatees comply

17
Q

Explain what enrolment of gatekeepers means

A
  • Public regulators inv. others/delag.
    -commonly private actors
    • in the role of regulat.
18
Q

Explain the strengths of enrolment of gatekeepers

A
  • inc. reg. capacity
    -deleg. control
    Less costly for administrative bodies
    -interna. into the trade
19
Q

Explain the weaknesses of the enrolment of gatekeepers

A

-inc. structures of gatekeepers may not always be alig. with regula. goals goals
-Opportu for gaming reg. rules

20
Q

Is the digital services act is a form of enrolment of gatekeepers? exp. your answer

A

YES
-req. online platforms to susp giving people who post manifestly ill. content, from platform

21
Q

Give examples of enrolment of gatekeepers

A

-twitter banning trump for spreading disinformation
-Dig Services Act

22
Q

Explain what risk-based regulation is

A

-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

23
Q

Explain the strengths of Risk-based regulation

A
  1. prioritisation
    -clear framework
    -clear what to aim for focus
  2. Transparancy
    -well-articulation of priorities
  3. Very systematic
24
Q

What are the weaknesses of risk-based regulation?

A

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

25
Q

What form of regulation did shutting down only the Northern part of Italy during the Covid Crisis because more cases of covid were detected there represent?

A

-Risk-based regulation

26
Q

TRUE or FALSE: the EU General Product Safety Regulation is a form of risk based regulation. Explain your answer

A

Yes
-SERIOUS risks–> commission may take action

27
Q

List examples of risk based regulation

A
  • Italian Covid Response (Northern Italy shutdown)
    -EU action against products presenting a serious risk