Securities Law Prof Blog

Editor: Eric C. Chaffee
Univ. of Toledo College of Law

A Member of the Law Professor Blogs Network

Wednesday, March 14, 2007

Cunningham on Principles-Based Regulation

As we ponder Secretary Paulson's call for "principles-based" regulation and what that means, Larry Cunningham (Boston College) provides us with scholarly insight.  He has just posted his article, A Prescription to Retire the Rhetoric of "Principles-Based Systems" in Corporate Law, Securities Regulation and Accounting, on SSRN.  Here is the abstract:

This Article corrects widespread misconception about whether complex regulatory systems can be fairly described as either “rules-based” or “principles-based” (also called “standards-based”). Promiscuous use of these labels has proliferated in the years since the implosion of Enron Corp. While the concepts of rules and principles (or standards) are useful to classify individual provisions, they are not scalable to the level of complex regulatory systems. The Article uses examples from corporate law, securities regulation and accounting to illustrate this problematic phenomenon before turning to a series of possible explanations for the widespread use of these misleading labels. The piece contributes to the substantive fields it uses to animate the inquiry and to more general jurisprudential literature on the rules-standards question.

http://lawprofessors.typepad.com/securities/2007/03/cunningham_on_p.html

Law Review Articles | Permalink

TrackBack URL for this entry:

http://www.typepad.com/services/trackback/6a00d8341bfae553ef00d8342b761853ef

Listed below are links to weblogs that reference Cunningham on Principles-Based Regulation:

» Cunningham on Principles-Based Regulation from University Update
[Read More]

Tracked on Mar 14, 2007 1:07:16 PM

Comments

Post a comment