Managed extraterritoriality - equivalence and international financial stability
<p>This thesis explores the recent development of the concept of equivalence in financial regulation, and its application to uphold international financial stability.</p> <p>The crisis of 2008 has acutely underlined that the financial stability of a State depends, in part at least...
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| Format: | Thesis |
| Language: | English |
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2023
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| _version_ | 1811139907902504960 |
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| author | Kermarec, R |
| author2 | Enriques, L |
| author_facet | Enriques, L Kermarec, R |
| author_sort | Kermarec, R |
| collection | OXFORD |
| description | <p>This thesis explores the recent development of the concept of equivalence in financial regulation, and its application to uphold international financial stability.</p>
<p>The crisis of 2008 has acutely underlined that the financial stability of a State depends, in part at least, on the quality of regulation applicable in other jurisdictions. To stymie arbitrage incentives or nudge regulatory change abroad, powerful States have thus given their domestic provisions an extensive extraterritorial reach. Against this backdrop, this thesis yields three main contributions to literature on extraterritorial financial regulation. First, it assesses the extent to which a State may legislate extraterritorially to mitigate systemic risk, whether directly, by governing financial activities abroad, or indirectly, by conditioning access to its market upon the quality of a financial institution’s domestic regulatory framework. It identifies two main functions of the equivalence technique, corresponding to the two branches of this dichotomy: equivalence both mitigates the reach of domestic rules abroad, and conditions the provision of services on the regulating State’s territory. These two functions are key to preventing a fragmentation of global markets.</p>
<p>Second, this thesis articulates a comprehensive analysis of the concept of equivalence, distinguishing it from neighbouring techniques such as substituted compliance or mutual recognition. It proposes a detailed framework for assessing the equivalence of domestic and foreign rules. Relying on a survey of all equivalence provisions throughout the European financial rulebook, it identifies shortcomings of the European equivalence regime and suggests possible reforms, notably exploring the possibility of a limited delegation of the equivalence assessment to a third party. Third and finally, this thesis assesses the possibility of coordinated determinations of equivalence by two or more powerful States, a mechanism amounting to the institution of a ‘minilateral’ club in financial regulation, and solving the Westphalian Dilemma which, it argues, undermines international financial stability.</p> |
| first_indexed | 2024-09-25T04:13:33Z |
| format | Thesis |
| id | oxford-uuid:388587ac-3620-4ede-96a9-cf0b8e326c80 |
| institution | University of Oxford |
| language | English |
| last_indexed | 2024-09-25T04:13:33Z |
| publishDate | 2023 |
| record_format | dspace |
| spelling | oxford-uuid:388587ac-3620-4ede-96a9-cf0b8e326c802024-07-15T09:45:24ZManaged extraterritoriality - equivalence and international financial stability Thesishttp://purl.org/coar/resource_type/c_db06uuid:388587ac-3620-4ede-96a9-cf0b8e326c80Financial institutions--Law and legislationEnglishHyrax Deposit2023Kermarec, REnriques, LHare, C<p>This thesis explores the recent development of the concept of equivalence in financial regulation, and its application to uphold international financial stability.</p> <p>The crisis of 2008 has acutely underlined that the financial stability of a State depends, in part at least, on the quality of regulation applicable in other jurisdictions. To stymie arbitrage incentives or nudge regulatory change abroad, powerful States have thus given their domestic provisions an extensive extraterritorial reach. Against this backdrop, this thesis yields three main contributions to literature on extraterritorial financial regulation. First, it assesses the extent to which a State may legislate extraterritorially to mitigate systemic risk, whether directly, by governing financial activities abroad, or indirectly, by conditioning access to its market upon the quality of a financial institution’s domestic regulatory framework. It identifies two main functions of the equivalence technique, corresponding to the two branches of this dichotomy: equivalence both mitigates the reach of domestic rules abroad, and conditions the provision of services on the regulating State’s territory. These two functions are key to preventing a fragmentation of global markets.</p> <p>Second, this thesis articulates a comprehensive analysis of the concept of equivalence, distinguishing it from neighbouring techniques such as substituted compliance or mutual recognition. It proposes a detailed framework for assessing the equivalence of domestic and foreign rules. Relying on a survey of all equivalence provisions throughout the European financial rulebook, it identifies shortcomings of the European equivalence regime and suggests possible reforms, notably exploring the possibility of a limited delegation of the equivalence assessment to a third party. Third and finally, this thesis assesses the possibility of coordinated determinations of equivalence by two or more powerful States, a mechanism amounting to the institution of a ‘minilateral’ club in financial regulation, and solving the Westphalian Dilemma which, it argues, undermines international financial stability.</p> |
| spellingShingle | Financial institutions--Law and legislation Kermarec, R Managed extraterritoriality - equivalence and international financial stability |
| title | Managed extraterritoriality - equivalence and international financial stability
|
| title_full | Managed extraterritoriality - equivalence and international financial stability
|
| title_fullStr | Managed extraterritoriality - equivalence and international financial stability
|
| title_full_unstemmed | Managed extraterritoriality - equivalence and international financial stability
|
| title_short | Managed extraterritoriality - equivalence and international financial stability
|
| title_sort | managed extraterritoriality equivalence and international financial stability |
| topic | Financial institutions--Law and legislation |
| work_keys_str_mv | AT kermarecr managedextraterritorialityequivalenceandinternationalfinancialstability |