Privatising Regulation To Enrich Democracy

This short paper by Dr Shann Turnbull makes the case for a radical rethink of the way in which financial services could be regulated. Currently regulators are pursuing a "Red Queen" approach to regulation and running ever faster to stay in the same place. Complexity can only be controlled with matching complexity, which is why current models of regulation for the financial services sector are not fit for purpose. However, these problems can be overcome by introducing of polycentric self-governance systems, of the type found in sporting organisations from local to global levels. Using this approach businesses could engage with their stakeholders to become more self-regulating and self-governing. If the UK Government were to develop this approach the UK would become a role model for the world.