THE CHANGING NATURE OF FINANCIAL REGULATION IN IRELAND
| Date | 01 February 1996 |
| Pages | 157-169 |
| DOI | https://doi.org/10.1108/eb024878 |
| Published date | 01 February 1996 |
| Author | JIM STEWART |
| Subject Matter | Accounting & finance |
THE
CHANGING NATURE OF FINANCIAL REGULATION IN
IRELAND
Received: 8th December, 1995
JIM
STEWART
JIM
STEWART
IS
A
LECTURER IN FINANCE IN
TRINITY
COLLEGE, DUBLIN. HE
HAS
A PhD FROM THE
LONDON
SCHOOL OF ECONOMICS. HIS MAIN
AREAS OF RESEARCH RELATE TO CORPORATE
TAXATION, THE FINANCING OF COMPANIES
AND SMALL COUNTRY CAPITAL MARKETS. HE
CAN BE CONTACTED AT UNIVERSITY OF
DUBLIN, SCHOOL OF BUSINESS STUDIES,
TRINITY COLLEGE, DUBLIN 2, TELEPHONE
(353-1)
608
2338,
FAX
(353-1)
679
9503.
ABSTRACT
This paper examines current issues and
recent
changes
in financial
regulation
in
Ireland.
One of
the
main
changes
relates
to the regulation of
Irish
financial mar-
kets
by
the
central
bank.
Other
bodies
will
also be, involved in different aspects of
regulation. One of the main issues con-
fronting the regulation of
markets
and
financial institutions is
cooperation
from
other jurisdictions. This
issue
has not
been
addressed
to date. A second issue arises
from
the
fragmentary
nature of
proposed
regulation, with an overreliance on
reporting
of
breaches
of
rules
rather than
active
investigation.
INTRODUCTION
The Irish Stock Exchange has for
many years had the same rules and
regulations as the London Stock
Exchange, and in effect has largely
been regulated as part of the London
Stock Exchange. All this has now
changed. Under a European Union
(EU) directive home country institu-
tions must now supervise domestic
stock exchanges. A Stock Exchange
Act became law in August 1995.
Other EU directives have led to
new laws or changes in existing laws,
for example insider trading law.
Some regulatory changes result from
keeping abreast of developments in
other countries such as legal provi-
sions to prosecute directors for reck-
less trading. Some changes have also
resulted from various investigations
into corporate malpractice.
This paper discusses the main
features of the Stock Exchange Act. It
also considers regulatory problems
that have come to light as a result of
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