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1 – 10 of over 57000The concept of light-handed regulation, including light-handed approaches to the regulation of airport services, is discussed. The rationale for the economic regulation of airport…
Abstract
The concept of light-handed regulation, including light-handed approaches to the regulation of airport services, is discussed. The rationale for the economic regulation of airport services and the traditional approaches used for economic regulation of airport charges are summarized. The evolution of international practice of light-handed regulation is outlined, including the experience with minimal regulation across monopoly industries in New Zealand and the acceptance of “negotiated settlements” in utility industries in North America. General reasons for moving to light-handed regulation of airports include the disadvantages of the price cap approach in practice and the benefits of facilitating greater negotiation between airports and users. Comparisons are made between alternative approaches to light-handed regulation of airport services, including price and quality of service monitoring, information disclosure regulation and negotiate-arbitrate regulation, approaches that have been applied to airport services in Australia and New Zealand. The role and nature of the incentives under each approach are discussed. The chapter concludes that whether light-handed regulation provides a suitable alternative approach to direct regulation depends on the market circumstances and the design characteristics of the light-handed approach.
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Mohsin Dhali, Shafiqul Hassan, Saghir Munir Mehar, Khuram Shahzad and Fazluz Zaman
The purpose of the study is to show that divergent perceptions among regulators, the regulated and the associated regulatory bodies across multiple jurisdictions regarding the…
Abstract
Purpose
The purpose of the study is to show that divergent perceptions among regulators, the regulated and the associated regulatory bodies across multiple jurisdictions regarding the nature and functionality of cryptocurrencies hamper the development of a more comprehensive and coherent regulatory framework in curbing crimes and other related risks associated with cryptocurrencies.
Design/methodology/approach
The study has used a descriptive doctrinal legal research method to investigate and understand the insights of existing laws and regulations in four selected jurisdictions concerning cryptocurrencies and how these laws could be further improved and developed to reduce crypto-related crimes. Furthermore, the study has also used a comparative research method to conceptualize the contours of the new legal discourse emerging from cryptocurrencies to adopt and implement a sound regulatory framework.
Findings
The study illustrated that divergent regulatory treatment among different jurisdictions might suffocate novel digital innovations such as cryptocurrency. These fragmented regulatory approaches by various jurisdictions question the sustainability of the present national legislation adopted to regulate cryptocurrencies. Looking into other jurisdictional developments in regulating cryptocurrencies, it is apparent that a concerted regulatory approach is needed to minimize the abuse of this innovation.
Research limitations/implications
The study has implications for regulators and policymakers to review the current regulatory framework for regulating cryptocurrencies to prevent regulatory arbitrage. The divergent legislative measures concerning cryptocurrency among different jurisdictions question the sustainability of these legislative initiatives, considering the evolving and borderless nature of cryptocurrency. Therefore, this paper will help regulators to consider the present legislative gaps in establishing a common global regulatory approach in the crypto sphere.
Originality/value
The study contributes to the existing body of literature by examining the regulatory frameworks of four jurisdictions, namely, the USA, Canada, China and the EU, related to cryptocurrencies, with a discussion on the development of cryptocurrencies-related laws among these four jurisdictions and their sustainability in curbing crimes in the Darknet.
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Strong versions of the Precautionary Principle (PP) require regulators to prohibit or impose technology controls on activities that pose uncertain risks of possibly significant…
Abstract
Strong versions of the Precautionary Principle (PP) require regulators to prohibit or impose technology controls on activities that pose uncertain risks of possibly significant environmental harm. This decision rule is conceptually unsound and would diminish social welfare. Uncertainty as such does not justify regulatory precaution. While they should reject PP, regulators should take appropriate account of societal aversion to risks of large harm and the value of obtaining additional information before allowing environmentally risky activities to proceed.
Joy Furnival, Kieran Walshe and Ruth Boaden
Healthcare regulation is one means to address quality challenges in healthcare systems and is carried out using compliance, deterrence and/or improvement approaches. The four…
Abstract
Purpose
Healthcare regulation is one means to address quality challenges in healthcare systems and is carried out using compliance, deterrence and/or improvement approaches. The four countries of the UK provide an opportunity to explore and compare different regulatory architecture and models. The purpose of this paper is to understand emerging regulatory models and associated tensions.
Design/methodology/approach
This paper uses qualitative methods to compare the regulatory architecture and models. Data were collected from documents, including board papers, inspection guidelines and from 48 interviewees representing a cross-section of roles from six organisational regulatory agencies. The data were analysed thematically using an a priori coding framework developed from the literature.
Findings
The findings show that regulatory agencies in the four countries of the UK have different approaches and methods of delivering their missions. This study finds that new hybrid regulatory models are developing which use improvement support interventions in parallel with deterrence and compliance approaches. The analysis highlights that effective regulatory oversight of quality is contingent on the ability of regulatory agencies to balance their requirements to assure and improve care. Nevertheless, they face common tensions in sustaining the balance in their requirements connected to their roles, relationships and resources.
Originality/value
The paper shows through its comparison of UK regulatory agencies that the development and implementation of hybrid models is complex. The paper contributes to research by identifying three tensions related to hybrid regulatory models; roles, resources and relationships which need to be managed to sustain hybrid regulatory models.
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While fighting with the novel coronavirus will not be the main goal of sectoral regulators, different regulatory authorities join the struggle by providing a regulatory response…
Abstract
Purpose
While fighting with the novel coronavirus will not be the main goal of sectoral regulators, different regulatory authorities join the struggle by providing a regulatory response. The purpose of this paper is to address this regulatory response in pandemic gathered around eight thematic areas.
Design/methodology/approach
This paper discusses the regulatory response in pandemic gathered around eight thematic areas, namely, the objectives, rules and standards, authorization and permits, procedure, monitoring and surveillance, enforcement, accountability and an institution presenting regulatory actions to tackle coronavirus (COVID-19) in reference to day-watchman type regulation.
Findings
Tackling the COVID-19 pandemic should be a knowledge-based approach (taking as much as possible from best available practices with respect to the novel coronavirus) with a framework of rules, standards, authorization, permits and guidance, monitored and enforced in a way adjusted to conditions of the pandemic, being as safe (as non-physical, as online) as possible, with suspended or extended deadlines, free of unnecessary administrative burdens. In this way, regulation should be pragmatic and flexible, as under the day-watchman model.
Research limitations/implications
In a post-pandemic regime, in the short run, the regulators should try to minimize the social and economic challenges faced by consumers and entrepreneurs. Among them, one may find scaling back, at least temporarily, the rules developed in non-disaster contexts. However, in the end, the post-disaster reforms tended to strengthen regulators’ hands, also under the deregulated government. The day-watchman type regulation balances both, as a middle ground approach, being a bridge between “a total subordination” and “a complete release.”
Practical implications
The disaster management (including public law regulation) provided by public authorities when tackling the effects of hurricanes, earthquakes or tsunamis can be a benchmark for regulatory responses to the COVID-19 pandemic. This concerns the support offered to entities and individuals affected by the negative consequences of reducing or stopping their businesses and staying in isolation.
Social implications
The day-watchman approach, visible in certain examples of public response to COVID-19 may serve as a framework for establishing a regulatory regime that would automatically take effect in case of another pandemic, limiting delays in regulatory actions, reducing non-compliance and accelerating recovery.
Originality/value
This study provides an analysis of different theories on public regulation addressing the notion of regulation using the day-watchman theory, which could be applied in regulatory actions during a pandemic. The paper discusses concrete steps taken by regulatory authorities worldwide, bringing examples from the USA, Canada, the UK, France, China, Japan, Australia and New Zealand. It juxtaposes the regulatory experiences derived from different catastrophes such as hurricanes, earthquakes or tsunamis with the regulatory response in a pandemic.
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The purpose of this paper is to provide an overview of China's contemporary banking regulatory system, with particular focus on regulatory control of foreign banks trading in…
Abstract
Purpose
The purpose of this paper is to provide an overview of China's contemporary banking regulatory system, with particular focus on regulatory control of foreign banks trading in China. The paper addresses three aspects of Chinese banking regulation: what does China regulate; why does China regulate; and how does China regulate. Much of the discussion is concerned with China's regulatory agencies particularly with the role of the CBRC as the principal regulator in China's banking sector.
Design/methodology/approach
In the first instance the paper presents an overview of banking regulatory models gained from a review of theoretical literature in the area. Then through a wide ranging review of Chinese publications, both academic and official, the paper seeks to relate the course of regulatory reform in China, both in terms of compliance with orthodox regulatory theory, and the unique regulatory requirements of the Chinese banking system.
Findings
The paper recognises that China has embraced the need for banking regulation with the establishment of an institutional structure that is responsive to both banking supervision and government policy. Within that structure the role of the CBRC, the pervasive manner in which that agency operates, and the content of its regulatory output have been identified and critically reviewed.
Originality/value
In its review of the modernization of China's banking regulatory system, the paper achieves originality from the author's research into, and critical reflections on Chinese generated literature, both institutional and academic, which is then communicated in a manner that will be understood by readers familiar with Western banking regulatory theory.
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Debate is growing around the expansion of risk-based regulation. The regulation scholarship provides evidence of regulatory failure of the risk-based approach in different…
Abstract
Purpose
Debate is growing around the expansion of risk-based regulation. The regulation scholarship provides evidence of regulatory failure of the risk-based approach in different domains, including financial regulation. Therefore, this paper aims to provide cautionary evidence about the risk of regulatory failure of risk-based strategy in the financial regulation while using enterprise risk management (ERM) as a meta-regulatory toolkit.
Design/methodology/approach
Based on interview data gathered from 30 risk managers of banks and five regulatory personnel, combined with secondary data, this study mainly explores the challenges for meaningful use of ERM based self-regulation in regulated banks. The evidence helps to assess the risk of regulatory failure of the risk-based regulation while using ERM.
Findings
The evidence reflects that regulated banks face diverse challenges arising from both peripheral and internal environments that limit the true internalization of ERM-based self-regulation. Despite this, the regulator uses this self-regulation as a meta-regulatory toolkit under the risk-based regulation to achieve the regulatory aims. However, the lack of true internalization of ERM based self-regulation is likely to raise the risk of regulatory failure of risk-based regulation to achieve the regulatory goals. Risk-based regulation is an evolving strategy in the regulatory regime. Therefore, care should be taken while using ERM as a regulatory toolkit before relying on it substantially.
Originality/value
The paper provides empirical insights about the challenges for effective use of ERM as a meta regulatory toolkit that might be useful practically both to the regulators and regulated firms.
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Recent research shows that because of money-laundering risks, there has been an increase in the off-boarding of certain types of corporate clients in the financial sector. This…
Abstract
Purpose
Recent research shows that because of money-laundering risks, there has been an increase in the off-boarding of certain types of corporate clients in the financial sector. This phenomenon known as “de-risking” has been argued to have a negative impact on society, because it increases the possible risk of money laundering. The purpose of this paper is to analyze whether the de-risking strategy of financial institutions results in an expansion of the regulatory framework concerning anti-money laundering focusing on off-boarding of clients and, if so, is there a way to avoid further regulation by changing present behavior.
Design/methodology/approach
This paper applies functional methods to law and economics to achieve higher efficiency in combating money laundering.
Findings
In this paper, it is found that the continuing of de-risking by financial institutions because of the avoidance strategy of money-laundering risks will inevitably result in further regulatory demands regarding the off-boarding process of clients. The legal basis for the introduction of further regulatory intervention is that some of the de-risking constitutes a direct contradiction to the aim of the present regulatory framework, making the behavior non-compliant to the regulation.
Originality/value
There has been very little research concerning de-risking related to money laundering. The present research has focused on the effect on society and not the relationship between the financial institutions and the regulator. This paper raises an important and present problem, as the behavior of the financial institutions constitute a response from the regulator that is contradicting the thoughts behind the behavior of the financial institutions. It is found that the paper is highly relevant if an expansion of regulation is to be hindered.
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Jocelyn Grira and Chiraz Labidi
This chapter discusses the regulatory challenges faced by financial institutions in emerging countries and it presents their specific features compared to financial institutions…
Abstract
This chapter discusses the regulatory challenges faced by financial institutions in emerging countries and it presents their specific features compared to financial institutions in developed countries. It offers a practical way of implementing regulatory changes while accounting for emerging countries’ specific features. Using a principle-based approach, this chapter builds on the recent regulatory developments in both developed and developing market economies. It relates these developments to industry best practices as well as the current state of the art in risk management and corporate governance. The findings show how the regulation of financial institutions in emerging countries differs from that in developed countries. Different approaches to mitigate the divergences and fill the gaps are discussed. Both regulators and financial institutions in emerging countries will find this chapter offers a practical point of view based on field and industry experience on how to interpret and apply regulations and adopt best practices in risk management in a way that accounts for emerging countries’ specific features.
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Brajesh Mishra and Avanish Kumar
Globally, the governance has shifted from positivist to the regulatory-centric approach, necessitating accurate contouring of regulatory governance framework. The study proposes a…
Abstract
Purpose
Globally, the governance has shifted from positivist to the regulatory-centric approach, necessitating accurate contouring of regulatory governance framework. The study proposes a novel approach to unravel the regulatory governance framework in the context of the Indian electronics industry – extendable to other sectors in India and other emerging economies.
Design/methodology/approach
The research objective has been operationalized through document analysis and thematic analysis of semi-structured interview transcripts in three steps: (1) arrive at parameters of the regulatory governance framework, (2) identify instruments against each parameter and (3) characterize parameters in terms of dominant instruments and their underlying modalities. The authors have adopted a set of 6 Cs modalities (control, communications, competition, consensus, code and collaboration) and regulatory space theory to analyze existing modalities mix in the dominant instruments.
Findings
In summary, the study has (1) identified eight macro and twenty micro regulatory governance parameters, (2) mapped regulatory governance parameters with instruments and institutions (3) revealed the top two dominant modalities for each regulatory governance parameter.
Practical implications
The existing modality characteristics of regulatory governance parameters can be used by manufacturers, investors and other stakeholders to make a realistic assessment of regulatory governance and reduce regulatory risk and regulatory burden.
Originality/value
The multidimensional use of parameters, instruments and modalities broadens the understanding of the existing regulatory governance framework and may assist the regulators in optimizing it to meet market requirements.
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