Regulation in the Financial Services Industry after the Crisis

• Applicant: Professor Dr. Marcus C. Christiansen, since 11/2011
• Co-Applicant: Professor Dr. Hato Schmeiser
• Subject Area: Accounting and Finance
• Term: from 2010 to 2015
• Project identifier: Deutsche Forschungsgemeinschaft (DFG) - Project number 171740472

The recent collapse of important participants in the financial services markets has revealed a worrisome fragility of the international financial system. Issues related to supervision and corporate governance have often been blamed for the crisis. Among these issues are pro-cyclicality due to regulatory rules, regulatory arbitrage, inappropriate accounting standards, lack of transparency, and poor management decisions, probably driven by wrong incentives. While insurance regulation has already been subject of reforms in Europe (Solvency II, Swiss Solvency Test), the ongoing crisis in the financial market has focused even more attention on regulation in financial services, both among academics and practitioners. In Research Grant 100012-114080/1, we began to analyze the regulatory system, and with this proposal our hope is to arrive at conclusions for a regulatory architecture after the crisis, with special attention to insurance companies in Switzerland, the European Union, and beyond. To achieve this goal, we intend to write, present and publish four papers on risk management and regulation in the financial services industry after the crisis. Each of the papers extends the existing literature in at least one important aspect and has substantial practical implications for insurers, regulators and national insurance associations.

• DFG Programme: Research Grants
• International Connection: Switzerland
• Ehemaliger Antragsteller: Professor Dr. Martin Eling, until 9/2011