Strategies of Financial Regulation

1. Front Matter

   Pages i-xix

   PDF

2. Introduction and Research Framework

   • Junghoon Kim

   Pages 1-44

3. Rule-Making of COB

   • Junghoon Kim

   Pages 45-119

4. Public Enforcement of COB

   • Junghoon Kim

   Pages 121-196

5. Private Enforcement of COB

   • Junghoon Kim

   Pages 197-288

6. Lessons and Recommendation

   • Junghoon Kim

   Pages 289-317

7. Back Matter

   Pages 319-363

   PDF

This book analyses different strategies and their results in implementing financial regulation in terms of rule-making, public enforcement and private enforcement. The analysis is based on a comparative study of conduct of business regulation on mis-selling of financial instruments in the UK and South Korea. It extends into liquidity regulation in the banking sector and credit rating agency regulation. The book concludes that in rule-making, purposive rules are more effective for achieving regulatory goals with minimal undesirable results, but a rule-making system with purposive rules can only work on a foundation of trust among rule-makers, enforcers and the regulates, that with respect to public enforcement, the enforcement strategies should combine the compliance-oriented and deterrence-oriented approaches and be continuously adjusted based on close monitoring of the regulatory outcomes and that in private enforcement, regulation should be instituted as the minimum requirement in private law.

• Financial Regulation
• Conduct of Business Regulation
• Mis-selling Over-the-Counter Derivatives
• Financial Consumer Protection
• Over-the-Counter Derivatives
• Comparative Study on Financial Regulation
• investments and securities

“This is an important and timely work on implementation of financial regulation as the effectiveness of reforms taken after the 2008 global financial crisis is due for evaluation. The author successfully shows different implementation strategies and their results based on case studies in the real world where not only regulatory culture but also economical, legal, and political circumstances affect the implementation approaches. Financial regulators and policy makers in different jurisdictions can refer to this book when they seek to make their financial regulatory systems work better.” (Suk Heon Yoon, Governor of Financial Supervisory Service, Korea)“‘Mis-selling’ of financial products is one of the keen issues in the matters of financial regulatory policy-making and financial consumer protection. This book, written by an examiner of the Korean financial supervisor, is deeply and precisely analyzing the causes of mis-selling and the problems in enforcement process, and further suggesting some legal and regulatory reformative measures to solve these problems. I strongly recommend financial regulators and policy-makers to read this book because it will definitely help them set up a more efficient financial regulatory regime for financial consumer protection.” (Dong Won Ko, Professor of Financial Law at Sungkyunkwan University Law School, Korea)

“This work represents a unique and original perspective on one recently manifested consequence of innovation in global financial markets, namely, the fact that in the face of extreme complexity, information asymmetries, and imbalances in risk bearing and decision making capacity, all market participants are very far from equal. The 2008 GFC revealed that eternal truth yet again in the case of OTC derivatives and it did so across the globe in different legal, regulatory and financial spaces. The financial markets, political and legal histories and cultures of South Korea and the UK at first sight could not differ more. Yet this work, drawing on the writer’s deep understanding of markets and practical experience as well as his theoretical insights from a wide range of disciplines, shed light on what was essentially a problem common to both countries. It represents a worthy contribution to the comparative Law and Finance literature and will be of interest to many beyond the shores of just the UK and South Korea.”  (Joanna  Gray, Professor of Law School, University of Birmingham, UK)

• Yoido-Dong, Youngdeungpo-Gu, Financial Supervisory Service, Seoul, Korea (Republic of)

  Junghoon Kim

Junghoon Kim has been the Senior Examiner, for the Financial Supervisory Service (FSS) Korea (a governmental organization that supervises and examines financial institutions, regulates the capital market and protects financial consumers and investors) since 2007. From 2002 to 2006, he was a manager at KPMG (Global Accounting & Advisory Firm) and was involved in Basel II implementation projects in major Korean commercial banks.

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