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Subject 5. Regulatory and Interdependencies PDF Download
Interdependence in the actions and potentially conflicting objectives of regulations is an important consideration for regulators, those regulated, and those assessing the effects of regulation.

  • Regulatory capture occurs when a regulatory agency is dominated by the regulated entities. The interests the agency sets out to protect are ignored in favor of the regulated entities' interests.
  • Regulatory competition is competition among different regulatory bodies to use regulation to attract certain entities.
  • Regulatory arbitrage is the practice whereby firms capitalize on loopholes in regulatory systems in order to circumvent unfavorable regulation.

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I passed! I did not get a chance to tell you before the exam - but your site was excellent. I will definitely take it next year for Level II.
Tamara Schultz

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