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THE REGULATION OF INVESTMENTS
Author(s) -
VALENTINE TOM
Publication year - 2008
Publication title -
economic papers: a journal of applied economics and policy
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 0.245
H-Index - 19
eISSN - 1759-3441
pISSN - 0812-0439
DOI - 10.1111/j.1759-3441.2008.tb01043.x
Subject(s) - investment (military) , deregulation , sanctions , business , finance , financial market , investment strategy , financial system , market economy , economics , law , politics , political science , market liquidity
This paper argues that it is time for an inquiry into the regulation of investment products and markets similar to the Campbell Inquiry which recommended the deregulation of the Australian financial system. First, the present approach based on disclosure requirements and legal sanctions has demonstrably failed, as indicated by continuing losses arising from the collapse of large investment vehicles. Second, there is a need to protect investors because of the large amount of assets they have exposed to investment vehicles, investors' lack of knowledge of the complex products now emerging and the possible systemic effects of the failure of large investment vehicles.