Regulators Lean on Financial Firms to Explain Industry to Them, Study Shows

From: The Wall Street Journal

‘Regulatory capture’ isn’t systemic but reliance on industry is potential red flag, CFA Institute survey says
Gabriel T. Rubin

Financial regulators often rely heavily on the companies they oversee to explain how their businesses work, a potential red flag, according to a survey of regulators and industry members.

The survey, commissioned by the CFA Institute, an association of investment professionals, was aimed at assessing the prevalence of “regulatory capture,” the idea that regulators can end up being co-opted by the industry.

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