With the tightening of U.S. securities regulation as part of the Sarbanes-Oxley Act, the United Kingdom's more liberal laws have resulted in London surpassing New York as the world's financial capital. This paper examines how that came about, and asks whether it is a permanent condition, just as...

This paper examines the contrast between Hong Kong’s reputation for laisser faire and its record of extensive state intervention in financial markets. It traces the long process of abandoning the concepts of virtuous markets and moral hazard and the introduction of increasingly comprehensive...

An Anglo-American regulatory ‘culture’ became associated with 30 years of worldwide economic reforms, global growth and monetary stability. American and British officials identified major sources of instability in their own financial markets before 2007 but remained non-interventionist,...

This article examines the regulation of directors remuneration in EU, UK and Belgian law. The author argues that there are two categorises of norms for the regulatory framework of directors remuneration: one is market-based, market efficiency norms of agency costs; the other is socio-legal...

Financial regulation is a much debated topic for some time. The history of financial instruments started at a time when people started giving value to physical objects over and above its inherent utility. Right from the very beginning of their existence, it has been acknowledged that financial...

As a global financial service provider, JPMorgan Chase (JPM) is supervised by banking regulatory agencies in different countries. Bruno Iksil, the derivatives trader primarily responsible for the $6 billion trading loss in 2012, was based in JPM's London office. This office was regulated both by...

I develop a structural model of mortgage demand and lender competition to study how leverage regulation affects the equilibrium in the UK mortgage market. Using variation in risk-weighted capital requirements across lenders and across mortgages with differential loan-to-values, I show that a...

This short paper by Dr Shann Turnbull makes the case for a radical rethink of the way in which financial services could be regulated. Currently regulators are pursuing a "Red Queen" approach to regulation and running ever faster to stay in the same place. Complexity can only be controlled with...

This paper studies the consequences of regulating executive compensation at financial institutions by examining the introduction of the UK Remuneration Code in 2010, which aimed to change the decision-making horizon and risk-taking incentives of bank executives. We find that, although both banks...

As the most globally active financial services provider, the UK has the potential to be a key player in helping to develop a more efficient international regulatory framework after it leaves the EU. All entities that have efficient and attractive financial services offerings will benefit from...