Tag Archives: cost-benefit analysis

The Cost-Benefit Thinking of Securities Regulators Needs to be More Transparent (IIAC Blog)

The Cost-Benefit Thinking of Securities Regulators Needs to be More Transparent (IIAC Blog)

Cost–benefit analysis is a valuable tool for assessing major public policy decisions, projects and regulations—for example, evaluating prospective regulations in a number of fields, including health, safety and the environment. The nature of securities regulation, however, makes costs-benefit analysis more difficult. Rather than focusing on a particular action, like releasing a pollutant, financial regulation cost-benefit analysis focuses on behavioural and market reactions.

Canadian securities regulators have refrained from conducting formal (quantitative) cost-benefit analysis because it is so complex. However, this not an excuse to avoid it. A more disciplined and rigorous approach to the rule-making process—one … Continue reading

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