Regulatory action: Shock and awe

Rather than surprising investors with their final decisions, disclosing findings on an ongoing basis would better prepare the market for eventual outcomes

We often see regulatory actions against various financial entities after the regulator has “inspected their books”. Recent regulatory action includes restrictions on accepting deposits, opening new accounts through online banking channels, issuing co-branded cards, launching new mobile products, and managing debt public issues. These actions reflect the regulators’ commitment to maintaining financial stability, fair markets, and ensuring compliance with regulations. However, investors view such action with shock and awe, as they impact them directly.

Another sector that periodically sees inspections — and regulatory action — is pharmaceutical firms exporting to the US. Here, inspections are conducted by