Stanley Choi has investigated Australia’s Continuous Disclosure Regime to identify if the Responsive Enforcement Strategy initiated in the early 2000s by the Australian Securities Investment Commission (ASIC) actually works.
The motivating factors behind the creation of the Responsive Enforcement Strategy for ASIC were to create sufficient pressure for widespread compliance in a resource-constrained regulatory environment. The aim was therefore to significantly reduce the need for costly law enforcement actions. The public, however, often measure the effectiveness of ASIC by the success of their law enforcement actions. Stanley Choi’s PhD has involved him in finding a new way to decide if this new strategy is working.
Stanley used financial proxies of information to infer the effectiveness of the Responsive Enforcement Strategy and the associated civil and administrative penalties. The result, empirical evidence that the Strategy is working – there was a strong increase in market liquidity. Stanley and his supervisor, Associate Professor Sue Wright have presented the findings to the Deputy Cahir of ASIC and have been invited to present the research to a larger group of the senior executive. Stanley’s innovative combination of law enforcement and financial research methodologies will assist in identifying the efficacy of regulatory practice in the future.