The British (Financial Regulatory Principles) Are Coming!
Law360Valerie L. Hletko, Manley Williams, Leslie L. Meredith
Regulation of financial products and services in the U.S. historically has relied on rules-based regulatory policy, governing business processes including disclosures relating to terms, pricing, structure and marketing. The U.K. has been a leader in applying principles-based regulation, which governs conduct at a higher level of generality. Over the past few decades, researchers in cognitive psychology and behavioral economics have produced a body of findings that are beginning to fundamentally alter understandings of what regulation should do, particularly with respect to the design of consumer “nudges.”
Originally published in Law360; republished with permission.