Financial Conglomerates and the Chinese Wall
Regulating Conflicts of Interest
Seiten
1993
Clarendon Press (Verlag)
978-0-19-825713-4 (ISBN)
Clarendon Press (Verlag)
978-0-19-825713-4 (ISBN)
Examines how regulators ensure that the growing number of conglomerates are regulated sufficiently strongly to eradicate systemic risks and conflict of interest abuses, yet are flexible enough to allow the benefits of conglomeration to be secured. It looks particularly at the Chinese wall.
The growth of financial conglomerates, offering a range of services hitherto unprecedented, has caused problems for regulators. While conglomerates bring with them many economic benefits (diversification of risk, economies of scope, etc), they also impose costs (systemic risk and conflict of interest abuses). This book explores ways in which regulators can ensure that the regulation imposed is sufficiently strong to eradicate these abuses, but at the same time sufficiently flexible to allow the benefits of conglomeration to be secured.
The Chinese Wall–a regulatory mechanism aimed at stemming the flow of information from one department in a firm to another, and reconciling conflicts of interest more generally–is singled out for special treatment. The legal position of the device, which has become all the more important in the wake of the recent Law Commission inquiry into the relationship between the Financial Services Act 1986 (and the rules made under it) and the general law, is considered in detail. The author argues that an effective Chinese Wall will, in most cases, be legally sufficient to absolve a firm from potential liability at general law, but that there are situations where Chinese Walls are not satisfactory. Here the conglomerate will have to suffer the commercial disadvantages of being a fiduciary by adopting a different, albeit more restrictive, regulatory option.
The growth of financial conglomerates, offering a range of services hitherto unprecedented, has caused problems for regulators. While conglomerates bring with them many economic benefits (diversification of risk, economies of scope, etc), they also impose costs (systemic risk and conflict of interest abuses). This book explores ways in which regulators can ensure that the regulation imposed is sufficiently strong to eradicate these abuses, but at the same time sufficiently flexible to allow the benefits of conglomeration to be secured.
The Chinese Wall–a regulatory mechanism aimed at stemming the flow of information from one department in a firm to another, and reconciling conflicts of interest more generally–is singled out for special treatment. The legal position of the device, which has become all the more important in the wake of the recent Law Commission inquiry into the relationship between the Financial Services Act 1986 (and the rules made under it) and the general law, is considered in detail. The author argues that an effective Chinese Wall will, in most cases, be legally sufficient to absolve a firm from potential liability at general law, but that there are situations where Chinese Walls are not satisfactory. Here the conglomerate will have to suffer the commercial disadvantages of being a fiduciary by adopting a different, albeit more restrictive, regulatory option.
Big Bang and conflicts of interest and duty; insider dealing - the nature of the problem; regulatory approaches to insider dealing in the UK and the USA; the Chinese Wall; the Chinese Wall at general law; legislative and regulatory approval of Chinese Walls in the USA and the UK; the Chinese Wall - a policy analysis. Appendices: schedule 8 - principles applicable to designated agency's legislative provisions; Merrill Lynch's statement of policy.
| Erscheint lt. Verlag | 5.8.1993 |
|---|---|
| Zusatzinfo | line figures |
| Verlagsort | Oxford |
| Sprache | englisch |
| Maße | 162 x 242 mm |
| Gewicht | 630 g |
| Themenwelt | Recht / Steuern ► EU / Internationales Recht |
| Recht / Steuern ► Wirtschaftsrecht ► Gesellschaftsrecht | |
| Wirtschaft ► Betriebswirtschaft / Management ► Finanzierung | |
| ISBN-10 | 0-19-825713-9 / 0198257139 |
| ISBN-13 | 978-0-19-825713-4 / 9780198257134 |
| Zustand | Neuware |
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Buch | Hardcover (2024)
C.H.Beck (Verlag)
CHF 306,55
