A Risk Characterization of Regulatory Arbitrage in Financial Markets

Abstract This article analyses regulatory arbitrage in financial markets from a risk-based perspective. It assesses terms of the risk it may pose to attainment objective, this case stability. Its most distinct contribution literature is application NOAEL approach—thus far mainly used public health and toxicology—to legal analysis management risks. We propose several qualitative parameters relating likelihood negative impact if such should occur. The ultimately aims help frame ongoing debate about policy-making use assessment methodologies cope with markets.