7 - Private Trust and the Regulation of Stockbrokers
from Part II
Published online by Cambridge University Press: 12 July 2019
Summary
Self-regulation sounds like an oxymoron. Parents do not go out to the opera and leave their kids alone – they hire a babysitter. But there is a powerful logic to self-regulation in some cases (although not for children). In this chapter, we look at the regulation of stockbrokers, which, since the 1700s, has primarily been accomplished through various self-regulatory organizations (SROs). These SROs, while not perfect, provide an interesting case study for the broader points we are making in this book about the role of non-governmental providers of trust. We do not believe, and do not claim, that these providers can accomplish their trust-creating job without government. We live on planet Earth, not on some libertarian fantasy world. Instead, our goal in this chapter is merely to demonstrate how private trust-creating forces can operate in lieu of, but yet supported by, government regulation.
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- Information
- The Trust RevolutionHow the Digitization of Trust Will Revolutionize Business and Government, pp. 127 - 138Publisher: Cambridge University PressPrint publication year: 2019