Self-regulation and compliance enforcement practices by the Investment Dealers Association in Canada
MetadataShow full item record
Purpose: This paper aims to examine the enforcement practices of the Investment Dealers Association of Canada (IDA) and argue that self-regulation simply does not work in the financial sector, as the sanctions available are neither applied with sufficient severity nor are the responsibilities for enforcement adequately divided between self-regulation, provincial securities commissions and the police. Design/methodology/approach: The core compliance data for the study came from the IDA’s tribunal cases that were heard between 1984 and June 2008. The theoretical approach involves the invocation of classic articles by the likes of Stigler, Posner and Becker, the essence of whose conclusions is that institutions will act in their own best interests and cannot be expected to act in the public interest. Findings: The findings show that over the period from 1984 to 2008, the severity of the sanctions increased consistently over the period. When penalty ceilings were increased, penalties increased. When in the latter phase of the period, public members (i.e. non-members of the industry) chaired the tribunals, penalties also increased. Research limitations/implications: Researchers can use the data to write a paper which asks “Why did the IDA tribunal penalties increase so consistently with time?” Future research could canvass various possible explanations, including the one presented in this paper, to focus sustained attention on the issue of self-regulation. Originality/value: This study is the first to systematically examine the enforcement performance of the IDA.
DescriptionThis pre-print version is deposited under a Creative Commons Attribution-NonCommercial 2.5 Canada License. Permission has been granted by Emerald Publishing Ltd. for this version to appear here. If you wish to use this manuscript for commercial purposes, please contact firstname.lastname@example.org. The version of record is available at https://doi.org/10.1108/JFRC-04-2016-0038.
Showing items related by title, author, creator and subject.
Woodford, Jamie (Electronic version published by Vancouver Island University, 2014)There is extensive research about self-regulation and how self-regulation, with its attention to a student’s ability to control his/her emotions and behaviour, has been found to contribute to better results in school and ...
Supporting all learners to develop their personal potential through the social-emotional competences of self-determination and self-regulation Monkman Neto, Mary C.A. (Electronic version published by Vancouver Island University, 2017)As the education system in British Columbia is shifting to embrace the research and understanding of how students learn most effectively, educators have been tasked with providing opportunities for students to work through ...
Helping Penelope, Sasha, Louise, and Grace: teaching mindfulness and self-regulation to decrease anxiety and shift goal-setting McGuinty, Katelyn (Electronic version published by Vancouver Island University, 2015)