Chapter 9: Effects of Regulations

In this section

• Regulatory Frameworks and Governance
  Explore the fundamentals of regulatory frameworks, governance structures, and enforcement mechanisms shaping industries worldwide. Learn about principles-based vs. rules-based regulation, corporate governance codes, and the global impact of transparent oversight.
• Competition Policy and Antitrust
  Comprehensive exploration of competition policy, antitrust laws, and the regulatory frameworks that maintain fair market competition across industries.
• Consumer Protection and Externalities
  Explore key consumer protection regulations, externalities, and their significance in maintaining efficient, fair, and transparent markets.
• Costs versus Benefits of Regulation
  Explore the trade-offs, methods, and real-world applications of evaluating regulatory policies through cost-benefit analysis, balancing direct and indirect costs with potential benefits like market stability and consumer protection.
• Regulatory Capture and Challenges
  Explore the concept of regulatory capture, its manifestations, and strategies to preserve the public interest, drawing on real-world finance and economics perspectives.
• International Regulatory Harmonization
  A practical yet in-depth look at aligning financial regulations across borders, focusing on drivers, challenges, benefits, and real-world applications for CFA candidates.
• Mitigating Systemic Risk through Regulation
  Explore systemic risk and how macroprudential regulation, stress testing, and SIFI oversight can help prevent widespread financial instability.
• Shadow Banking and Non-Bank Financial Regulations
  Explore the structure and risks of the shadow banking sector, its impact on financial stability, and key regulatory measures aimed at non-bank financial institutions.
• Financial Innovation and Regulatory Challenges
  Explore how emerging financial technologies and processes outpace traditional oversight, creating both opportunities and risks for markets, regulators, and investors.
• Political Economy and Public Choice Theory
  Explore how self-interested behavior, political structures, and economic incentives shape policy decisions, influencing regulatory outcomes and investor strategies.