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Document Type

Book Section

Publication Date

2015

Publication Title

Oxford Handbook of Financial Regulation

Abstract

This chapter provides a survey and comparative analysis of conduct of business (COB) regulation. COB regulation governs financial intermediaries’ conduct toward their clients, that is, toward the actors – whether individuals or institutions – with whom financial intermediaries transact in providing financial products and services. Modal regulatory strategies include anti-fraud rules, and duties of care, loyalty, fair-dealing and best-execution – and variants of these duties.

The chapter describes the justifications for COB regulation, the modal regulatory strategies used and the complex frameworks within which COB regulation operates. It then generally assesses US COB regulation, focusing on the regulation of broker-dealers and investment advisers. It outlines important market and regulatory developments over the past several decades and draws comparisons with corresponding EU and Australian COB regulation. The chapter concludes by discussing reforms proposed or adopted in the wake of the global financial crisis of 2007-09.

Keywords

Conduct Of Business Regulation, Business Conduct, Broker-Dealer, Investment Adviser, Comparative Analysis, MiFID, Fiduciary Duties, Agency Law, Conflicts of Interest

Publication Citation

Andrew F. Tuch, Conduct of Business Regulation, in Oxford Handbook of Financial Regulation 537 (Niamh Moloney, Eilis Ferran, & Jennifer Payne eds., 2015)

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