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(Washington)
Many advisors, and indeed many financial professionals generally, may feel that securities regulators do not do a particularly good job. Almost everyone in the industry can give horrible anecdotes chronicling the ineptitude of regulators. However, a new study may show a way to improve the situation-hire former financial industry workers. The study researched whether former research analysts were better or worse as regulators, and found that in general, they were more effective. This runs counter to the idea of some that conflicts of interest and personal contacts would make them too biased and sympathetic. Regulators with past industry experience were more likely to challenge CEOs and question earnings manipulation.
FINSUM : This is an interesting study, and it does make sense that someone with a lot of industry knowledge could do a great job as a regulator. The problem is that regulators don't pay enough to attract top talent.
- US
- finance
- regulation
- conflicts of interest
- research analysts
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
