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."

http://amarbheenick.blogspot.com/2009/04/assessing-effectiveness-of-enforcement.html