Reconstructing ‘conflict of interest’ in financial markets: Private management, public challenges, future prospects

Following widespread criticism of financial market (self-)regulation, there is a shift in regulatory mood, explored here with reference to evolving conceptions of conflict of interest. The pre-crisis distinction between conflict of interest (normal, manageable) and its exploitation (unacceptable, legally actionable) has become somewhat eroded, as exemplified by the SEC’s 2010 civil fraud action against investment bank Goldman Sachs. However the settlement of that case on the basis of ‘mistake’ left many questions unanswered: about the meaning(s) of conflict of interest, about managerial mistake versus exploitative intent in administrative/civil cases and equally about the potential for action under criminal law. Looking forward, a judgement of the European Court of Justice on insider trading – concerning a rebuttable assumption of intent – could be taken as a template for ‘drawing the line’ on conflict of interest. Acting on the basis of informational asymmetry could be taken as an indicator of intent and serious wrongdoing unless financial market actors can demonstrate otherwise.     

论政府的养老基金监管职责

养老基金投资运营是养老金制度运行的重要环节。但是由于市场失灵的存在 ,必须由政府对养老基金进行监管。本文通过分析政府监管的边界 ,以及总结国外政府在养老基金监管中的主要职责 ,为我国科学设计养老基金监管制度和合理界定政府监管机构的养老基金监管权限提出建设性建议。