{
  "title": "The Challenge of Enforcement in Securities Markets: Mission Impossible?",
  "publication": "IMF Working Papers, August 1, 2009",
  "sourceUrl": "https://www.imf.org/en/publications/wp/issues/2016/12/31/the-challenge-of-enforcement-in-securities-markets-mission-impossible-23140",
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  "summary": "Weaknesses in the enforcement of regulation have been targeted by the G-20 as a priority concern for reform. But enforcement efforts in securities markets have proven difficult and uneven.",
  "sections": [
    {
      "heading": "Overview and purpose",
      "content": "- Authors: Ana Carvajal, Jennifer A. Elliott\n- Date: August 1, 2009\n- Paper series: Working Paper No. 2009/168, Volume: 2009, Issue: 168\n- Pages: 37\n- DOI: https://doi.org/10.5089/9781451873153.001\n- Stock No: WPIEA2009168\n- ISBN: 9781451873153\n- ISSN: 1018-5941\n- Subject: Financial regulation and supervision; Financial services; Legal support in revenue administration; Securities; Securities regulation\n- Keywords: court order; enforcement capacity; insider trading; regulators surveillance systems; securities regulator; U.K. FSA; WP"
    },
    {
      "heading": "Key findings and arguments",
      "content": "- Weaknesses in the enforcement of regulation have been targeted by the G-20 as a priority concern for reform.\n- Enforcement efforts in securities markets have proven difficult and uneven.\n- The Bernard Madoff Ponzi scheme in the United States, which went undetected by U.S. authorities for more than two decades, highlights:\n  - the importance of effective enforcement of securities regulation, and\n  - the challenges securities regulators worldwide face in implementing credible enforcement programs.\n- Noncompliance with securities law can have serious system-wide impact, not just individual losses.\n- The credibility of the system as a whole rests on the existence of effective discipline — the probability of real consequences for failure to obey the law."
    },
    {
      "heading": "Analytical approach",
      "content": "- The paper explores:\n  - the elements of enforcement,\n  - why enforcement is so challenging,\n  - why enforcement is important, and\n  - whether the effects of enforcement can be measured.\n- Methodology: analysis of data gathered in the World Bank/IMF Financial Sector Assessment Program (FSAP) to examine how enforcement is being carried out around the world."
    },
    {
      "heading": "Conclusions and implications",
      "content": "- The paper draws conclusions regarding how countries are meeting the challenge of effective enforcement based on the FSAP data analysis.\n- Effective enforcement is necessary to maintain system credibility by ensuring a real probability of consequences for legal violations.\n\nIMF Working Paper — The Challenge of Enforcement in Securities Markets: Mission Impossible? By Ana Carvajal and Jennifer A. Elliott, August 1, 2009. Working Paper No. 2009/168.\n\n---\n\n Content in this bundle\n\n- wp09168\n  - wp09168 (Markdown version){rel=\"alternate\" type=\"text/markdown\"}\n  - wp09168 (PDF){rel=\"external\" type=\"application/pdf\"}\n\n---\n\nSource: https://www.imf.org/en/publications/wp/issues/2016/12/31/the-challenge-of-enforcement-in-securities-markets-mission-impossible-23140"
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    "Authors: Ana Carvajal, Jennifer A. Elliott",
    "Published: August 1, 2009",
    "Series: IMF Working Papers",
    "DOI: https://doi.org/10.5089/9781451873153.001",
    "Authors: Ana Carvajal, Jennifer A. Elliott",
    "Date: August 1, 2009",
    "Paper series: Working Paper No. 2009/168, Volume: 2009, Issue: 168",
    "Pages: 37",
    "DOI: https://doi.org/10.5089/9781451873153.001",
    "Stock No: WPIEA2009168",
    "ISBN: 9781451873153",
    "ISSN: 1018-5941",
    "Subject: Financial regulation and supervision; Financial services; Legal support in revenue administration; Securities; Securities regulation",
    "Keywords: court order; enforcement capacity; insider trading; regulators surveillance systems; securities regulator; U.K. FSA; WP",
    "Weaknesses in the enforcement of regulation have been targeted by the G-20 as a priority concern for reform.",
    "Enforcement efforts in securities markets have proven difficult and uneven.",
    "The Bernard Madoff Ponzi scheme in the United States, which went undetected by U.S. authorities for more than two decades, highlights:",
    "Noncompliance with securities law can have serious system-wide impact, not just individual losses.",
    "The credibility of the system as a whole rests on the existence of effective discipline — the probability of real consequences for failure to obey the law.",
    "The paper explores:",
    "Methodology: analysis of data gathered in the World Bank/IMF Financial Sector Assessment Program (FSAP) to examine how enforcement is being carried out around the world.",
    "The paper draws conclusions regarding how countries are meeting the challenge of effective enforcement based on the FSAP data analysis.",
    "Effective enforcement is necessary to maintain system credibility by ensuring a real probability of consequences for legal violations.",
    "**_wp09168**"
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