Andromachi Georgosouli

The FSA's ‘Treating Customers Fairly’ (TCF) Initiative: What is so Good About it and Why it May Not Work

This article examines the Financial Services Authority FSAs ‘Treating Customers Fairly’ (TCF) initiative as a case study of a regulatory strategy that aims to stimulate the self‐regulatory capacity of the regulated population to advance socially desirable goals – in this particular case, fair treatment for customers. It considers the development and nature of TCF and notes some difficulties that jeopardize its overall effectiveness. Parts one and two of the article consider the development and nature of TCF, while part three examines its appeal. Part four provides an overview of some problematic aspects of the FSAs initiative. The conclusion draws together the main threads of the analysis and considers the future of TCF and, more generally, consumer protection in the United Kingdoms system of financial regulation. The aim is to make a modest contribution to the debate about the proper direction of the present reform of financial regulation.

The debate over the economic rationale for investor protection regulation: a critical appraisal

Purpose - This paper is concerned with the application of economic analysis to law and public policy. Its aim is not to highlight the well-documented merits of economic analysis but to shed light on some of its flaws and to propose an agenda for future research in the field. Design/methodology/approach - The paper takes as a case study the debate over the economic rationale for investor protection regulation. Findings - The paper discusses the main economic arguments for and against regulation and explains why arguments of this type are weaker than commonly thought. Originality/value - The paper reviews the main arguments for and against the economic rationale for investor protection regulation and identifies the economic reasoning entrenched in the arguments of both sides of the debate, spells out its shortcomings and proposes an agenda for future research.

Investor Protection Regulation: Economically Rational?

In this essay I discuss the debate about the rationale for investor protection in the retail financial sector by means of conduct of business regulation. The two theses I examine have been heavily informed, on the one hand, by the simultaneous debate surrounding the general issue of consumer protection and, on the other, by the contemporary discussions concerning the economic rationale for regulating non-banking financial institutions specializing in the retail industry. I start by shedding some light on the theoretical background underpinning the thesis for and the thesis against investor protection regulation. Then, I focus on the various arguments juxtaposed and discuss their reasoning. I argue that the the economic case for conduct of business regulation remains as much obsure as controversial.