29 April 2009
New report from the City of London Assessing the Effectiveness
of Enforcement and Regulation
New research published today by the City of London Corporation
identifies wide differences in the effectiveness of enforcement and
capital markets regulation between developing and developed
countries. The current crisis exposes the serious gaps in
regulation in the most developed economies, however this report
finds that regulatory effectiveness, measured in terms of market
outcomes, is comparable among all the developed economies assessed,
despite quite different approaches to regulation. No single one of
these economies comes out ahead in all measures. The study looks at
outcomes such as the cost of equity, size and liquidity of markets,
valuation premiums, listings and market cleanliness to evaluate the
effectiveness of regulation in the UK, US, France, Germany and
Australia.
"Assessing the Effectiveness of Enforcement and Regulation" was
commissioned by the City of London Corporation in conjunction with
the London Investment Banking Association (LIBA), the International
Capital Market Association (ICMA), the Securities Industry and
Financial Markets Association (SIFMA) and the Futures and Options
Association (FOA). It was produced by CRA International.
Stuart Fraser, Chairman of Policy of the City of London
Corporation, said:
"This report is particularly timely as the world’s leading
economies look for ways to harmonise global financial regulation.
It shows that we must focus on improving regulatory outcomes rather
than getting tied up in the nuances of the regulatory regime. There
is no point in regulating for the sake of it."
Ends-
Notes to Editors
- Assessing the Effectiveness of Enforcement and
Regulation is available to download here:
www.cityoflondon.gov.uk/researchpublications
- About Stuart Fraser: Stuart Fraser is Chairman
of the Policy and Resources Committee of the City of London
Corporation.
- About the City of London Corporation:
The City of London Corporation provides local government services
for the Square Mile, the financial and commercial heart of Britain.
The Corporation works nationally and internationally to maintain
and enhance the City as a world-leading international financial and
business centre. It also serves London and the UK with special
responsibilities such as the Barbican Arts Centre, the Central
Criminal Court at the Old Bailey, 10,000 acres of open space
including Hampstead Heath and Epping Forest, three wholesale food
markets, three inner-London City Academies, the City Bridge Trust,
economic regeneration programmes in neighbouring boroughs and
acting as London’s Port Health Authority.
www.cityoflondon.gov.uk
- About FOA: The FOA is a European industry
trade association for firms and institutions carrying on business
in futures, options and other derivatives. Its principal role is to
represent the interests of its members in the public and regulatory
domain, and deliver a wide range of support services to its core
membership, which includes banks, brokers, fund managers, energy
and power market participants, commodity trading and spread betting
companies, exchanges and clearing houses. The FOA has initiated the
establishment of MiFID Connect, the EU/US Coalition on Financial
Regulation and the Associate Parliamentary Group on Wholesale
Financial Markets & Services and was a founder member of the
European Parliamentary Financial Services Forum.
www.foa.co.uk
- About ICMA: ICMA is the self-regulatory
organisation representing the financial institutions active in the
international capital market worldwide. ICMA’s members are located
in 46 countries across the globe, including all the world’s main
financial centres. ICMA’s market conventions and standards have
been the pillars of the international debt market for over 40
years, providing the self regulatory framework of rules governing
market practice which have facilitated the orderly functioning and
growth of the market. ICMA actively promotes the efficiency and
cost effectiveness of the capital markets by bringing together
market participants including regulatory authorities and
governments.
www.icmagroup.org
- About LIBA: LIBA is the principle trade
association in the United Kingdom for firms active in the
investment banking and securities industry. The Association
represents the interests of its Members on all aspects of their
business – both international and domestic – and promotes their
views to the authorities in the United Kingdom, the European Union
and elsewhere.
- About SIFMA: SIFMA brings together the
shared interests of more than 600 securities firms, banks and asset
managers. SIFMA's mission is to promote policies and practices that
work to expand and perfect markets, foster the development of new
products and services and create efficiencies for member firms,
while preserving and enhancing the public's trust and confidence in
the markets and the industry. SIFMA works to represent its members’
interests locally and globally. It has offices in London, New York,
and Washington D.C., and its associated firm, the Asia Securities
Industry and Financial Markets Association, is based in Hong Kong.
www.sifma.org
- Press enquiries: Susanna Howard in the City of
London press office:
T: 020 7332 3450
Email :
susanna.howard@cityoflondon.gov.uk