Is real time regulatory reporting a goal too farfetched? Aside of the theoretical premise that the earlier you know, the earlier you can prevent, is there a solid practical base to the argument. Would the function of the regulator be better served not by
such focus on transaction level detail but by principles based governance?
Below, I discuss the advantages / disadvantages of both the approaches.
Let me spend some time first on Transaction Based regulation running on a real or close to real time basis.
Now for the principles based regulation.
While both forms of regulation have their advantages and disadvantages, principles based governance allows regulators to pursue even those cases where market participants have followed the law in letter but not in spirit.
© Finextra Research 2016