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Financial market enforcement in France

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  • Laure Batz

    (VSE Prague University of Economics and Business)

Abstract

This article puts into perspective enforcement as conducted by the French Financial Market Authority since its creation in 2003 until 2021 with respect to the current state of the literature on financial crimes. The three main channels of action are exhaustively surveyed: sanctions, settlements (since 2012), and alerts (since 2010). The sample is comprised of 393 sanctions standing for cumulated 371 million euros of fines, of 86 settlements standing for cumulated 13 million euros of fines, and of 194 alerts. The article also underlines the complex challenges of information acquisition regarding financial crimes, despite increased efforts of enforcers in terms of transparency. Financial innovations and internationalization of financial markets also contribute to challenge enforcement. This review is supplemented by investigating the translation of regulatory changes into the verdicts for breaking the law, measured as the fines. The results stress that the majority of legal criteria introduced in 2016 were already accounted for, with room for improvement for enforcers and defendants. The ultimate goal of this article is to fuel regulatory debates on how to enforce financial regulations more efficiently in light of the recent history, in a European and globalized context.

Suggested Citation

  • Laure Batz, 2023. "Financial market enforcement in France," European Journal of Law and Economics, Springer, vol. 55(3), pages 409-468, June.
    • Handle: RePEc:kap:ejlwec:v:55:y:2023:i:3:d:10.1007_s10657-023-09761-0
    DOI: 10.1007/s10657-023-09761-0
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    More about this item

    Keywords

    Financial crime; White-collar crime; Regulation; Enforcement; Financial markets; Information and market efficiency;
    All these keywords.

    JEL classification:

    • G18 - Financial Economics - - General Financial Markets - - - Government Policy and Regulation
    • G28 - Financial Economics - - Financial Institutions and Services - - - Government Policy and Regulation
    • G38 - Financial Economics - - Corporate Finance and Governance - - - Government Policy and Regulation
    • K23 - Law and Economics - - Regulation and Business Law - - - Regulated Industries and Administrative Law
    • K41 - Law and Economics - - Legal Procedure, the Legal System, and Illegal Behavior - - - Litigation Process
    • K42 - Law and Economics - - Legal Procedure, the Legal System, and Illegal Behavior - - - Illegal Behavior and the Enforcement of Law

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