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ICFR Conference: The Optimal Relationship between the Regulator and the Regulated

25 Apr 2012

London, UK

Conference Proceedings

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As part of the International Centre for Financial Regulation’s long term programme titled “What does good regulation look like?” we held this half-day conference, with the generous support of Clifford Chance, to examine the essential topic of the optimal relationship between the regulator and the regulated.

The interaction between financial regulators and the firms they regulate and supervise is one of the central dynamics affecting the quality of regulatory policies. An effective dialogue between the two sides is commonly perceived as beneficial to the extent that it limits the risk of uninformed regulations. However, a debate has emerged in recent years over the distortions in the regulatory process associated with this interaction, and in particular the risk that regulators and supervisors may pay undue regard to the interests of the financial firms under their purview, an outcome commonly described as ‘regulatory capture’. The aim of this conference was to discuss possible mitigating strategies to strengthen the integrity and legitimacy of the regulatory process, while making the most of the valid input of the financial industry and other social groups. 

The first part of this conference discussed the participation of the financial industry and other interest groups in the regulatory process: which views are integrated into the making and implementation of financial regulation and which are missing? What solutions exist to ensure balanced participation in the policymaking process? How can the contribution of financial industry groups be channelled towards the design of effective regulation?

The second part of the conference turned its attention towards the role of the regulators. To what extent is the capacity of regulatory agencies to implement effective regulation constrained by their mandate, their resources, or their recruitment policies? What solutions are possible to ensure that regulators are adequately challenged and held accountable, and to prevent the kind of intellectual capture experienced before the recent crisis?

In preparation for this conference we have received written contributions which we plan to publish in a report, firstly on our website in June, and later as a hard copy publication in September 2012.  For more information, including a list of authors, please see the back of this programme.

ICFR Publication - September 2012
Regulatory Capture: The Optimal Relationship between the Regulator and the Regulated (working title)

Contributing authors: Lawrence Baxter
, Duke University; Clive Briault, KPMG; Daniel Carpenter, Harvard University; Gerry Cross, Association for Financial Markets in Europe; David Currie, International Centre for Financial Regulation; Jane Diplock, Securities and Exchange Board of India; Christine Farnish, Consumer Focus; David Green; John Mogg, Ofgem; David Moss, Harvard University; Stefano Pagliari, International Centre for Financial Regulation; Avinash Persaud, Intelligence Capital; Tony Porter, McMaster University; Richard Raeburn, European Association of Corporate Treasurers; Adam Ridley, Equitas Limited; Andrew Sheng, China Banking Regulatory Commission; David Strachan, Deloitte; Terri Vaughan, National Association of Insurance Commissioners; Andrew Walter, London School of Economics and Political Science; Ngaire Woods, University of Oxford; Kevin Young, Princeton University

To pre-order a printed copy of this publication please contact Sandra Glavan at [email protected]

Estimated retail price £9.99


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For more information about this event, please email [email protected]


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ICFR Publication - September 2012*
The Making of Good Financial Regulation. Towards a Policy Response to Regulatory Capture

 Click here to download

To pre-order a printed copy of this publication please contact Sandra Glavan at [email protected]

* Estimated retail price £9.99