consultation: public libraries? June 22, 2012
Posted by Bradley in : consultation, transparency , add a commentThe Manchester Central Library’s website describes the library as “[o]ne of Manchester’s most famous and best-loved landmarks”. But the library is now being criticized for a programme of book-pulping which has been going on for some time and seems to be related to the renovation of the library buildings (“designed to give the city a flagship library of which it can be proud”). The library’s description of its policy (accessible here) is not very informative. A letter criticizing the pulping policy complains of a lack of transparency and argues that subject specialists and the people of Manchester should have been consulted. The letter thus advocates two seemingly rather distinct ideas of consultation, although expert and citizen consultation are often lumped together. The argument for consulting citizens is rather eloquent:
The books at central library are not owned by the council; they are owned by the people of Manchester. It is they, not politicians and bureaucrats, who need to have a say in what happens to this valuable Mancunian treasure.
promoting retail investor voice? June 13, 2012
Posted by Bradley in : financial regulation , add a commentLuis Aguilar issued a public statement yesterday about the SEC’s new investor advisory committee:
The participation of retail investors in our capital markets is crucial to our country’s economic success. Yet – in contrast to many other groups that interact with the Commission – most individual investors lack the time and resources to mobilize in support of policy positions, participate in meetings with Commissioners and SEC staff, and make their needs known. Accordingly, I urge the IAC to put individual retail investors foremost in its considerations.
It will be interesting to see what this committee does. Meanwhile, Occupy the SEC suggested some tough questions the Senate Committee on Banking, Housing, and Urban Affairs might ask Jamie Dimon at its hearing today.
developing consumer capability/facilitating decision-making? June 7, 2012
Posted by Bradley in : consumers , add a commentThe UK’s Office for Rail Regulation says in a report published today that buying rail tickets in the UK is too complicated and, as a result, consumers overpay for their tickets. The report states:
It is likely that the retailing environment for train tickets will evolve over the coming years, with new products and retailing modes coming on line. In developing these, and in implementing solutions to current problems, it is important that they are properly tested with passengers, including the vulnerable, to ensure that they deliver the desired improvements.
law and society conference June 3, 2012
Posted by Bradley in : events , add a commentThis week I will be at the Law and Society conference. I’ll be talking about a paper with the title Coercive Peer Review in Transnational Financial Regulation: Comparative Law and Compliance as part of a panel on financial regulation. Here is the (June 2012 version).
Here’s the brief version:
The paper examines the development of peer review as a component of the transnational standard setting process, with a particular focus on the financial crisis-related peer review processes which have been established by the G20 and the Financial Stability Board (FSB). The FSB peer review documents, the paper argues, focus mostly on the formal characteristics of the subject states’ regulatory regimes, and to rely to a large extent on the statements made by the subject states themselves. Apart from such statements the reviews are based on old data produced through the IMF-World Bank FSAP process. But the FSB’s documents suggest — although they do not show — that the real significance of its peer review processes may be in the developing dialog between the states involved in these processes. In addition the paper argues that the cumulative impact of the IMF and World Bank’s Financial Sector Assessment Program (FSAP) and the FSB’s peer reviews is to change the characteristics of the transnational standards developed by the Basel Committee on Banking Supervision (Basel Committee), the International Organisation of Securities Commissions (IOSCO) and the International Association of Insurance Supervisors (IAIS). Standards which are frequently drafted in vague language and which seem to leave significant discretion to implementing states to decide on the details of implementation are converted through the FSAP and peer review processes into less vague standards with less scope for discretion in implementation. If the FSAP and peer review processes were truly processes of consensus among peers this might not be significant, but peer reviews among the G20 countries are intended as a basis for pressuring non-G20 countries to conform their financial regulatory systems to the international standards, and thus the peer review system raises concerns about the legitimacy of the international standards process.
jubilee May 30, 2012
Posted by Bradley in : britishness , add a commentI’m not quite sure what I think of the monarchy, but this picture is very cute:
(from Mark Easton’s blog at the BBC).
brussels “fact-finding” conference on financial conglomerates May 24, 2012
Posted by Bradley in : governance , add a commentThe conference is an integral part of fact-finding on the regulatory framework applicable to financial conglomerates. It will allow for a wide public hearing devoted to the review of financial conglomerates’ legislative framework. It aims to contribute to a fundamental review of the objectives and features of the current Financial Conglomerates Directive (FICOD). Depending on the final outcome of the FICOD review, a proposal for an amendment of the FICOD directive might be tabled in 2013 with a view to further harmonising the definition of conglomerates, the scope of supplementary supervision and the powers available to supervisory authorities.
Speakers will represent, among others, the international supervisory community from G20 and EU countries, expert lawyers in the financial sector and of course the conglomerates themselves.
Of course.
The system for registration suggests there will be some selectivity:
If you would like to attend the conference, please complete the on-line questionnaire.
You will receive a computer-generated acknowledgement immediately after you have completed the on-line questionnaire and, at a later date, those selected will receive an invitation to participate by email.
prayers at town meetings May 17, 2012
Posted by Bradley in : governance , add a commentMuch attention has been focused recently on the Greek state, and on the question of whether or when it will exit the euro area. The town of Greece in New York State has also been having some problems arising out of the fact that
Since 1999, the Town of Greece, New York, has begun its Town Board meetings with a short prayer.
Plaintiffs challenged the practice arguing a violation of the Establishment Clause. The Second Circuit found that the cases required an examination of the totality of the circumstances. The Court said:
In our view, whether a town’s prayer-selection process constitutes an establishment of religion depends on the extent to which the selection process results in a perspective that is substantially neutral amongst creeds. The town asserts, and there is no evidence to the contrary, that it would have accepted any and all volunteers who asked to give the prayer. But the town neither publicly solicited volunteers to deliver invocations nor informed members of the general public that volunteers would be considered or accepted, let alone welcomed, regardless of their religious beliefs or non-beliefs. Had the town publicly opened its prayer practice to volunteers in this way, its selection process could be defended more readily as random in the relevant sense…. we need not determine whether any single prayer at issue here suffices to give such an indication of establishment, since we find that on the totality of the circumstances presented the town’s prayer practice identified the town with Christianity in violation of the Establishment Clause
I recently noted an English decision that a town council did not have implied authority to have prayers as a formal part of council meetings. Clearly this is a complicated issue whether the state in question has an established religion (as England does – the Queen is the Supreme Governor of the Church of England) or not. The English judge seemed to prefer that prayers be separated from the formal part of council meetings whereas the Second Circuit requires complex balancing:
Ultimately, municipalities must consider their prayer practices in context and as a whole. A municipality must ask itself whether what it does, in context, reasonably can be seen as endorsing a particular faith or creed over others. That is the delicate balancing act required by the Establishment Clause and its jurisprudence.
fsa muscle-flexing: truthfulness matters May 16, 2012
Posted by Bradley in : lies , add a commentIn prohibiting Anthony Verrier from
performing any function in relation to any regulated activity carried on by any authorised or exempt person or exempt professional firm, because it appears to the FSA that Mr Verrier is not a fit and proper person due to concerns over his honesty, integrity and reputation
the FSA states:
In having regard to confidence in the UK’s financial industry, it is essential that confidence is maintained in the honesty, integrity and reputation of persons occupying senior positions within the management of UK authorised financial institutions.
The decision was based on findings (in the High Court and Court of Appeal) that Mr Verrier had engaged in a conspiracy to induce brokers at one form of inter-dealer brokers to move to another firm, breaching their contracts with the first firm. The judgments describe the conduct as illegal and as dishonest. In The Court of Appeal, for example, Lord Justice Maurice Kay described Mr Verrier as having the intention
to overstep legal boundaries to the extent necessary to achieve his conspiratorial aim
The FSA press release contains a quote from Tracy McDermott, the FSA’s acting director of enforcement and financial crime
One of our fundamental requirements for approved persons is that they must act with honesty and integrity. This is to ensure not only that their customers and clients are treated properly but also that the regulator can have trust and confidence in what we are being told about the way businesses are being run. In light of the High Court’s findings about Verrier’s conduct, we have concluded that he is not fit and proper to be in the UK financial services industry.
iosco money market fund consultation May 14, 2012
Posted by Bradley in : transparency , add a commentAt the end of last week three SEC Commissioners issued a statement that IOSCO’s recent consultation document on Money Market Funds had been issued without their agreement:
On April 27, 2012, IOSCO published the … Consultation Report without the concurrence of the U.S. Securities and Exchange Commission (the Commission).
We feel that it is important to state for the record that the Consultation Report does not reflect the views and input of a majority of the Commission. In fact, a majority of the Commission expressed its unequivocal view that the Commission’s representatives should oppose publication of the Consultation Report and that the Commission’s representatives should urge IOSCO to withdraw it for further consideration and revision. Accordingly, the Consultation Report cannot be considered to represent the views of the U.S. Securities and Exchange Commission.
The statement is a little ambiguous as to whether the Commissioners are complaining that the SEC’s representatives who attended the IOSCO technical committee meeting which approved the issuance of the consultation document were not effective enough or that the other members of the committee did not pay enough attention to their views. And the statement is silent as to the substance of the disagreement with the consultation document. Presumably the couple of weeks between the publication of the consultation document and the statement was a period of lobbying for withdrawal of the consultation. IOSCO is supposed to operate through consensus, and does not explain the views of its members. Presumably the point of the public statement is to show that there was a lack of consensus about the document, making the document appear less legitimate. But IOSCO doesn’t operate according to clear public process standards anyway, and doesn’t publish minutes of meetings of its committees. And the document is after all merely a consultation document:
The objective of this consultation paper is to share with market participants IOSCO’s preliminary analysis regarding the possible risks MMFs may pose to systemic stability, as well as possible policy options to address these risks.
Making IOSCO look less legitimate may harm confidence in the transnational standards system. I’m not sure if that would be a good or a bad thing.
eu banking consultation May 9, 2012
Posted by Bradley in : consultation , add a commentThe “High Level Expert Group” on reforming the structure of the EU banking sector began a consultation nearly a week ago which has now hit the Commission’s “Your Voice in Europe” page. The closing date is June 1. The announcement states that:
We welcome contributions from citizens, organisations and public authorities.
But whereas the consultation document phrases the questions to banks and to corporate customers as direct questions to the entities themselves, the questions supposedly asked of retail customers are phrased rather differently. For example, one of the questions to corporate customers is:
What are the main banking services and products that you seek from your bank?
There is no such question for retail customers. The document asks corporate customers:
What are your views with respect to structural reform of banking in general and in particular with respect to the structural reform proposals to date (e.g. US Volcker Rule, UK ICB proposal)?
In the retail customers section of the document there is a similar question but it is drafted very differently:
What are the views of retail customers with respect to structural reform of banking in general and in particular with respect to the structural reform proposals to date (e.g. US Volcker Rule, UK ICB proposal)? What structural reforms would be desirable from their point of view?
Retail customers are not interrogated directly, others are to speak on their behalf. And the phrasing of the questions seems to imply that those who wish to speak on behalf of retail customers should only bother responding if they are able to speak about the views and situation of retail customers generally.
Perhaps we should have some low level expert groups on this sort of issue.