Winner Of The FESE De la Vega Prize 2021 Announced : vimarsa

Winner Of The FESE De la Vega Prize 2021 Announced


Winner Of The FESE De la Vega Prize 2021 Announced
Date
01/06/2021
The Federation of European Securities Exchanges (FESE) is delighted to announce that the winner of the FESE De la Vega Prize 2021 is Jonas Heese, the Marvin Bower Associate Professor of Business Administration at Harvard Business School, for his paper “Does industry employment of active regulators compromise oversight?”
Industry employment of active regulators is the subject of debate. The paper observes that the practice has long raised concern that it leads to “regulatory capture, whereby regulators receive financial compensation from firms in exchange for lax oversight.” In response, most public regulators have implemented policies that require regulators to resign from industry employment upon taking office, effectively prohibiting industry employment for active regulators. The paper also draws attention, however, to self-regulatory organisations (SROs) who, in contrast, often allow regulators to retain industry employment during their tenure at the SRO. Their argument, Heese writes, is that “this practice strengthens oversight, because it helps to attract individuals with strong expertise.”

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