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GOALSBASED AND RULESBASED APPROACHES TO REGULATION BEIS Research Paper Number 8May 2018Author: Dr. Christopher Decker, University of Oxford The final version of this paper was submitted by the authors.

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Regulators can take a wide range of approaches to regulation, but broadly speaking, three common approaches prevail – rules-based (prescriptive), goals-based, and management-based regulation.

There are two traditional approaches to regulation, rules-based regulation and principle-based regulation.

A classic example of a rule-based system is the domain-specific expert system that uses rules to make deductions or choices. For example, an expert system might help a doctor choose the correct diagnosis based on a cluster of symptoms, or select tactical moves to play a game.

Rules-based regulation has two strengths. First, it provides greater legal certainty to market players, who are able to abide by clear rules governing all aspects of their business. Second, it enables financial regulators and supervisors to operate in a non-discretionary manner.

Rules impose standards and delineate undesirable conduct in a prescriptive way. This creates clarity for firms on what they are required to do, in turn allowing for greater certainty on how they should act to stay within their legal duties.

A rules-based approach to regulation prescribe in detail or gives a set of rules, how to behave whereas a principle-based approach to regulation outcomes and principles are set and the controls, measures, procedures on how to achieve that outcome is left for each organisation to determine.

A classic example of a rule-based system is the domain-specific expert system that uses rules to make deductions or choices. For example, an expert system might help a doctor choose the correct diagnosis based on a cluster of symptoms, or select tactical moves to play a game.

A rules-based approach instils the code into law with appropriate penalties for transgression. A principles-based approach requires the company to adhere to the spirit rather than the letter of the code.

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Form Packages
Adoption
Bankruptcy
Contractors
Divorce
Home Sales
Employment
Identity Theft
Incorporation
Landlord Tenant
Living Trust
Name Change
Personal Planning
Small Business
Wills & Estates
Packages A-Z
Form Categories
Affidavits
Bankruptcy
Bill of Sale
Corporate - LLC
Divorce
Employment
Identity Theft
Internet Technology
Landlord Tenant
Living Wills
Name Change
Power of Attorney
Real Estate
Small Estates
Wills
All Forms
Forms A-Z
Form Library
Customer Service
Terms of Service
DMCA Policy
About Us
Blog
Affiliates
Contact Us
Privacy Notice
Delete My Account
Site Map
All Forms
Search all Forms
Industries
Forms in Spanish
Localized Forms
Legal Guides
Real Estate Handbook
All Guides
Prepared for You
Notarize
Incorporation services
Our Customers
For Consumers
For Small Business
For Attorneys
Our Sites
US Legal Forms
USLegal
FormsPass
pdfFiller
signNow
airSlate workflows
DocHub
Instapage
Social Media
Call us now toll free:
1-877-389-0141
As seen in:
  • USA Today logo picture
  • CBC News logo picture
  • LA Times logo picture
  • The Washington Post logo picture
  • AP logo picture
  • Forbes logo picture
© Copyright 1997-2025
airSlate Legal Forms, Inc.
3720 Flowood Dr, Flowood, Mississippi 39232