Regulatory Arbitrage.

Fleischer, V. (2010). Regulatory Arbitrage. Texas Law Review, 89(2), 227-289.

Type

Journal article

Intellectual base

Primary research

Year

2010

Volume

89

Issue

2

Pages

227-289

Link

https://texashistory.unt.edu/ark:/67531/metapth638603/m1/13/

Cited from

philosophy, security_intelligence

Cited by

3 citations across 3 artifacts.

Each citation links to the sentence it supports in the citing article.

Primes

• Adversarial Boundary Navigation
  • Regulatory arbitrage and structuring. Corporate structuring to fall on the safe side of tax, securities, or sanctions boundaries while preserving the economic substance the regulator meant to constrain; transactions sized just below reporting thresholds.

    This sourceFirst comprehensive theory of regulatory arbitrage — restructuring a deal to exploit the gap between its economics and its regulatory treatment while preserving economic substance — the rule-concept-gap exploitation in tax/securities/sanctions law.

• Brandolini's Law
  • Regulation — a regulated party can propose evasive interpretations and loopholes faster than a regulator can audit and close them.

    This sourceProvides the first comprehensive theory of regulatory arbitrage — parties restructure deals to exploit gaps between economic substance and regulatory treatment faster than regulators can respond — evidencing the loophole-versus-audit cost asymmetry.

Mechanisms

• Regulatory Boundary Review
  • Its failure mode is degrading into a rubber stamp — a box-ticking exercise that finds a technical "yes" while violating the rule's purpose

    This sourceDefines regulatory arbitrage as restructuring around a gap between a deal’s economic substance and its regulatory treatment to reduce or avoid regulatory burdens.

Verification

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Links previously used in the corpus

Before the registry existed this work was also linked 1 other way.

• https://papers.ssrn.com/sol3/papers.cfm?abstract_id=1567212 ×2

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