Professional Standards Research

Reinventing regulation

In the wake of the global financial crisis, the traditional tools of regulation have failed to effect change in financial services, necessitating a more coherent and substantive response to crisis.

With the death knell of principles-based regulation ringing out, it would only be reasonable to assume that its less-government interventionist cousin of “self-regulation” is officially now a regulatory dead end.

But what has been missing from the debate about corporate failure and inadequate regulation is a serious consideration of the individual ethical and professional obligations of those in positions of influence, expertise and authority inside organisations.

In this analysis, Dr Deen Sanders argues that establishing formal support for, and obligation on, professionals to exercise their duty to the public can create greater transparency, revitalise the essence of professional responsibility – and reinvent financial services regulation.

This paper was originally published in Law and Financial Markets Review, June 2014.

About the author

Dr Deen Sanders is Chief Executive Officer of the Professional Standards Councils. He works with industry, government and regulators to protect consumers and promote excellence in professional standards by encouraging self-regulation.

Dr Sanders was previously head of the Financial Planning Association’s professionalisation project and a member of the global regulatory taskforce for financial planning standards. He has also participated in and/or led a number of government and professional advisory panels on standards and regulation.

Dr Sanders is a specialist in the field of professions, with a background in regulation, financial services, law, corporate governance and education.

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