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Showing posts with the label Regulatory Arbitrage

Theresa May’s Brexit Legacy Predicament: Short-Term vs Long-Term

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This short blog post discusses the delicate predicament that British PM Theresa May is faced with in light of MP’s recent support for the triggering of Article 50 [1] . Whilst it may be obvious that any political leader will have to balance a number of competing interests, the job facing Theresa May is arguably more important. The decision of the British people to leave the European Union has forced the Government to focus on productivity and growth in preparation of leaving the bloc, as can be seen by the many Trade excursions taken by Mrs May in recent weeks. Yet, that position is one that can directly induce a lowering of standards, or a so-called ‘race-to-the-bottom, that may have an extremely damaging effect on the health of the British society (and potentially further afield due to the interconnectedness of modern society). This theoretical notion of the introduction of new levels of ‘regulatory arbitrage’ – where institutions will move between jurisdictions to receive a...