A Question of Trust - Post-Truth Paradigms and the Challenge to Financial Regulation
Trust in institutions is falling at an alarming rate, the cause and consequence of democratic rejection of strategies to deal with the Global Financial Crisis. Irrespective of whether rule or principles based forms of regulation were privileged, each failed to address the erosion of core normative anchors. Blindsided by the factors that led to the GFC, the policy response, based largely on technical solutions, has done little to restore trust.
Justin O'Brien, Professor of Financial Regulation, Australian Centre for Financial Studies, Monash Business School, Monash University explores the challenges of rebuilding trust. He recognises that tools such as the ABA's code of conduct that are being designed to function as a guidline and commitment to a certain type of behaviour, are only flaming the distrust unless they are firmly anchored into a broader social purpose.
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