The search for an optimal RBC regulatory system

2014 ◽  
Vol 6 (1) ◽  
pp. 78-92
Author(s):  
Dror Parnes
Keyword(s):  
Design Methodology ◽  
Directed Graphs ◽  
Regulatory System ◽  
Cascading Failure ◽  
Regulatory Regime ◽  
Bank Failures ◽  
Too Big To Fail ◽  
Content Type ◽  
Proportional Allocation ◽  
Failure Models

Purpose – The author assembles three hypothetical regulatory regimes and deploys computer simulations to contrast different banking systems based on conventional strategies for appointing risk-based capital minimum thresholds. The paper aims to discuss these issues. Design/methodology/approach – The author instigates cascading failure models within numerous directed graphs and measures the inflicted costs, the accumulated bank failures, and the general robustness of the networks following various economic shocks. Findings – The author finds that a homogeneous regulatory regime is an inferior approach. However, a selected too-big-to-fail scheme portrays the best defensive banking model with the lowest number of total bank failures and the fewest banks' costs and social costs. Research limitations/implications – The author can only theoretically examine this topic. Originality/value – The author overcomes some obstacles in prior studies including the use of a large and complex network and the proportional allocation of funds upon a bank failure.

SFC reminding sponsors of the need to adopt an attitude of “professional scepticism”

2017 ◽  
Vol 18 (3) ◽  
pp. 82-84
Author(s):  
Gareth Hughes ◽  
James Comber
Keyword(s):  
Hong Kong ◽  
Design Methodology ◽  
Regulatory Regime ◽  
Group Company ◽  
Content Type ◽  
Professional Skepticism ◽  
Company Limited ◽  
A Company ◽  
Practical Implications ◽  
Do So

Purpose To remind sponsors to adopt an attitude of “professional skepticism” in Hong Kong IPOs. Design/methodology/approach Explains the Securities and Futures Commission (“SFC”)'s sanction on BOCOM International (Asia) Limited (“BIAL”) as a sign of determination to hold sponsors to account as gatekeepers to the Hong Kong capital markets. Findings The SFC has reprimanded and fined BIAL HK$15 million for failing to discharge its duties as a sole sponsor in a listing application for China Huinong Capital Group Company Limited (“China Huinong”), a company established in the PRC. This substantial fine reinforces the need for sponsors to ensure that they fully and properly discharge all of their duties, and that they will be held responsible for any failure to do so, even if the listing is not ultimately approved. Practical implications If sponsors fail to fulfil the requirements required under the sponsors’ regulatory regime, the SFC will be proactive and impose tough sanctions, even if the listing application is eventually withdrawn or returned by the SEHK. Originality/value Practical guidance from experienced regulatory, financial and commercial dispute resolution lawyers.

CFTC overhauls customer protection requirements

2014 ◽  
Vol 15 (1) ◽  
pp. 25-32 ◽  
Author(s):  
Robert M. Brown
Keyword(s):  
Design Methodology ◽  
Commodity Futures ◽  
Regulatory Regime ◽  
Futures Trading ◽  
Content Type ◽  
Regulatory Response ◽  
Market Participants ◽  
Policies And Procedures ◽  
Practical Implications

Purpose – The purpose of the paper is to summarize the Commodity Futures Trading Commission's (CFTC) recent overhaul of its customer protection rules, which regulate how futures commission merchants (FCMs) and derivatives clearing organizations (DCOs) handle customer funds. Design/methodology/approach – The paper summarizes the most significant aspects of the CFTC's October 30, 2013 customer protection rulemaking, explains FCM and DCO obligations under the new regulatory regime, and sets forth a compliance timeline. Findings – The CFTC's recent overhaul of its customer protection rules impose significant new requirements on FCMs and DCOs in their handling of customer funds. Practical implications – All FCMs and DCOs that handle customer funds should review these new rules and begin putting into place policies and procedures to ensure their compliance as each new requirement comes into effect. Originality/value – The CFTC's overhaul of its customer protection regime is new and significant. FCMs and DCOs need to understand their new obligations under the rules. As these new rules are the CFTC's regulatory response to the events that led to the insolvencies of MF Global and Peregrine Financial Group, these developments also should be of interest to futures and swaps market participants generally.

scholarly journals Chinese fintech companies and their “going out” strategies

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Alice Siqi Han
Keyword(s):  
Economic History ◽  
Design Methodology ◽  
Regulatory Regime ◽  
Chinese Government ◽  
Rapid Rise ◽  
Private Companies ◽  
Content Type ◽  
The Past ◽  
Digital Payments ◽  
Developed Nations

PurposeThis paper outlines the rapid rise of China's fintech companies over the past decade with a focus on their globalization strategies as they enter their next phase of development.Design/methodology/approachThe author examines China's current and prospective influence on global financial digitization trends, and assesses both domestic and foreign opportunities and challenges confronted by China's fintech firms as they look to expand abroad.FindingsThe Chinese government is experimenting with a radically new fintech system and a regulatory regime in response to it. Chinese ambitions to expand fintech influence through private companies and the state-led “digital RMB” (e-CNY) will likely provoke a wave of “digital protectionism” among developed nations to protect internal digital payments.Originality/valueThis paper is an original economic history research on China's fintech industry.

Protecting children from internet pornography? A critical assessment of statutory age verification and its enforcement in the UK

2019 ◽  
Vol 43 (1) ◽  
pp. 183-197
Author(s):  
Majid Yar
Keyword(s):  
Design Methodology ◽  
Regulatory Regime ◽  
Content Type ◽  
Critical Response ◽  
Online Pornography ◽  
Policy And Strategy ◽  
Online Behaviour ◽  
Alternative Approaches ◽  
Age Verification ◽  
The Uk

Purpose The purpose of this paper is to critically assess the newly created regulatory and policing regime for age-restricting access to pornography in the UK. Design/methodology/approach It examines the pivotal legislation, policy and strategy documents, consultation submissions and interventions from a range of stakeholders such as children’s charities, content providers and privacy advocates. Findings Even before its implementation, the regulatory regime betrays serious flaws and shortcomings in its framing and configuration. These difficulties include its inability to significantly curtail minors’ access to online pornography and risks of privacy violations and associated harms to legitimate users’ interests. Research limitations/implications Remedial measures are available so as to address some of the problems identified. However, it is argued that ultimately the attempt to prohibit minors from accessing such content is set to fail, and that alternative approaches – such as better equipping children through education to cope with explicit materials online – need to be given greater prominence. Originality/value This paper provides the first criminological policy analysis of this latest attempt to regulate and police online behaviour, and offers an important critical response to such efforts.

A note on liquidity policies and financial networks

2019 ◽  
Vol 11 (3) ◽  
pp. 451-456
Author(s):  
Danilo Lopomo Beteto Wegner
Keyword(s):  
Central Bank ◽  
Design Methodology ◽  
Banking System ◽  
Market Liquidity ◽  
Financial Networks ◽  
Bank Failures ◽  
Quantitative Easing ◽  
Content Type ◽  
Net Worth ◽  
Liquidity Provision

Purpose This paper aims to provides an example of how government and central bank policies that promote market liquidity (e.g., quantitative easing programs) can change the structure of the banking system. Design/methodology/approach The nexus between liquidity policies and financial networks is addressed through an example that captures stylized features of the interbank market. In the example discussed, two scenarios are considered: one with and another without central bank/government liquidity provision, leading to two different network structures that are then used to study the likelihood of contagion. Findings The example provided shows that government and central bank policies that promote market liquidity can lead to financial networks that are better capitalized (net worth of the banking system is higher) but, at the same time, more fragile (higher likelihood of bank failures). Originality/value To the best of the author’s knowledge, this is the first attempt to model the formation of a financial network with an explicit mechanism accounting for government and central bank policies that affect market liquidity, which, in turn, could be interpreted as a quantitative easing program.

Guernsey as an investment funds domicile: benefits and regulations

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
By Annette Alexander ◽  
Christopher Andersen ◽  
Andrew Boyce ◽  
Tom Carey ◽  
David Crosland ◽  
...  
Keyword(s):  
Design Methodology ◽  
Service Providers ◽  
Regulatory Regime ◽  
Investment Fund ◽  
Investment Funds ◽  
Content Type ◽  
Legal Structure

Purpose To explain the benefits and the regulations pertaining to Guernsey as a domicile for investment funds. Design/Methodology/Approach Explains the benefits of Guernsey as a fund domicile, the regulatory regime, and the types of fund vehicles used in Guernsey, registered and authorized. Findings Guernsey is one of the world’s largest offshore finance centers, with a thriving funds industry. The benefits of Guernsey as a fund domicile are substantial, including a proportionate, flexible and competitive funds regulatory regime, a stable political and legal structure, and a wealth of first-class fund service providers. Originality/Value Expert guidance from experienced investment-fund lawyers.

Governance and performance reporting in Scottish charities

2013 ◽  
Vol 11 (2) ◽  
pp. 112-130 ◽  
Author(s):  
Theresa Dunne
Keyword(s):  
Design Methodology ◽  
Regulatory Reform ◽  
Regulatory Regime ◽  
Regulatory Change ◽  
Content Type ◽  
Reporting Practices ◽  
Related Information ◽  
Performance Reporting ◽  
Descriptive Account ◽  
And Performance

Purpose – This paper aims to explore the governance and performance reporting practices of Scottish charities at a time of unprecedented legislative and regulatory reform. Such reforms include the revision of the SORP governing charity reporting and the Charities and Trustee Investment (Scotland) Act which led to the establishment of the Office of the Scottish Charity Regulator. Design/methodology/approach – This paper provides a descriptive examination of the Trustees' Reports (TRs) produced by a sample of Scottish charities; this assessment was facilitated by means of a content analysis of these documents following the introduction of the new regulatory regime. Findings – The findings indicate that the regime change had a significant impact on the provision of performance, governance and accountability-related information in Scottish charities' TRs. Originality/value – The paper provides the first detailed descriptive account of reporting practices across a range of charities in Scotland at a time of unprecedented regulatory change.

Too big to fail, too big to jail: restoring liability a lesson from HSBC case

2017 ◽  
Vol 24 (4) ◽  
pp. 513-519 ◽  
Author(s):  
Patrick Hardouin
Keyword(s):  
House Of Representatives ◽  
Systemic Risk ◽  
Design Methodology ◽  
Too Big To Fail ◽  
Financial Industry ◽  
Content Type ◽  
The Us ◽  
Personal Liability ◽  
Practical Implications

Purpose This paper aims to highlight the shift of impunity from institutions to individuals within the “too big to fail, too big to jail” paradigm and to restore individual liability in the financial industry. Design/methodology/approach The paper is based on the analysis of HSBC deferred prosecution agreement concluded on December 10, 2012 and of a report by the US House of Representatives Financial Committee released in July 2016. Findings “Too big to fail, too big to jail” is a paradigm which contains justice. It leads to the impunity of individuals involved due to the absence of trial. Containment of justice is denial of justice. However, the systemic risk is attached to institutions, not to individuals. Therefore, it should not hamper the prosecution of individuals. Practical implications Setting sanctions applicable to individuals and proportionate to the crime would contribute to deter financial misconducts. Originality/value The value of the paper is the demonstration that there is no basis for a limited personal liability in the financial industry.

The collapse of unlisted mortgage companies: a regulatory dilemma

2017 ◽  
Vol 30 (01) ◽  
pp. 19-35
Author(s):  
Monica Keneley ◽  
Graeme Wines ◽  
Ameeta Jain
Keyword(s):  
Design Methodology ◽  
Total Population ◽  
Regulatory Regime ◽  
Regulatory Change ◽  
Shadow Banking ◽  
Content Type ◽  
Policy Issues ◽  
Mortgage Finance ◽  
Regulatory Approach ◽  
Practical Implications

Purpose Policy issues associated with the regulation of the unlisted debenture market have been highlighted in recent times with the collapse of a number of regionally based mortgage companies. The purpose of this paper is to analyse the decline and demise of the unlisted debenture market between 2007-2013 with particular reference to the effectiveness of the regulatory regime in stabilising the industry and protecting investors’ interests. Design/methodology/approach A database was constructed which reflected the total population of unlisted mortgage companies in the financial sector. A snapshot approach was used to assess the extent to which these companies complied with regulatory provisions. Findings Findings suggest the regulatory process allowed these companies to continue operating despite not complying with the relevant Australian Securities and Investments Commission benchmarks. In the light of the current inquiry into the financial system, the research suggests that a re-evaluation of the regulatory approach is timely. Research limitations/implications This research is restricted to a study of one category of debenture issuers (issuers of mortgage finance). It is based on reports required by regulatory authorities. It does not provide an analysis of the motivations of investors in these companies. Practical/implications This research has implications for the implementation of regulatory change in respect to oversight of shadow banking activities. It suggested that a passive approach to regulation is not sufficient to ensure that the interests of investors are fully protected. Originality/value No prior research has systematically examined the unlisted mortgage and analysed the borrowing and lending activities of companies that have failed and those that have survived.

scholarly journals Community interventions in construction health and safety and the implications

2018 ◽  
Vol 23 (3) ◽  
pp. 312-329 ◽  
Author(s):  
Nnedinma Umeokafor
Keyword(s):  
Construction Projects ◽  
Design Methodology ◽  
Community Intervention ◽  
Health And Safety ◽  
Geographic Location ◽  
Community Interventions ◽  
Regulatory Regime ◽  
Content Type ◽  
Cultural Consideration ◽  
Practical Implications

PurposeThe purpose of this study is to examine the involvement of communities – geographical or geopolitical units, which identifies culture, interest and ethnicity – in construction health and safety (H&S) and the implications. This stems from the unexamined hence poorly understood roles of many stakeholders in the construction H&S management and regulatory regime in Nigeria.Design/methodology/approachInterviews with contractors and key informants and a survey of contractors were conducted. Descriptive and inferential statistics and thematic analysis were used.FindingsThere is evidences of community interventions: negotiating with contractors on H&S issues; strongly stipulating that H&S measures are adopted and implemented; and enforcing H&S through both violent and non-violent means. These have no legal backing. There is a relationship between the locations of the projects, urban area and rural area, and six community intervention variables. The study also reveals that among the implications of community interventions in H&S are contractors contextualising H&S in these communities and the tension between parties in construction projects. Again, there is a relationship between the location of the projects and six of the implications including the tension between communities and contractors and between contractors and clients.Practical implicationsIn adequately addressing construction safety, health and environment issues in Nigeria, geographic location and socio-cultural consideration are pertinent, a point for policymakers, communities and contractors.Originality/valueThe study draws attention to the geographic location and socio-cultural explanations for the differences in the H&S management, performance and attitudes of contractors in Nigeria. This is the first study that examines the involvement of communities in H&S and the implications.

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