Financial Regulation as an Anticompetitive Institution

Market-Internal Financial Regulation in Sports as an Anticompetitive Institution

The Rationale for a Single National Financial Services Regulator

The relevance of this study stems from significant changes in the role of the state in addressing crises, which have occurred with increasing frequency since 2008 — the year of the global financial and economic crisis — particularly in the Russian Federation. The variety of definitions for the term “government financial regulation” found in both domestic and foreign sources has led to a number of theoretical contradictions, hindering the development of this field of study. The aim of this paper is to refine the definition of the concept and to develop a classification of its forms, methods, and instruments. The research applies methods of analysis and synthesis of academic literature, regulatory acts, and mediumterm financial planning documents of the Russian Ministry of Finance. The author clarifies the concepts of “finance” and “government financial regulation”, distinguishes between financial regulation and fiscal, tax, customs-tariff, monetary, and broader economic policy and regulation, and proposes a classification of instruments and their corresponding forms of financial regulation — direct and indirect. A methodology for differentiating these forms and aligning them with specific areas and tools of government financial regulation is also proposed. The article includes a graphical model illustrating the distinctions between financial and economic regulation by the state. The findings can be used by practitioners to improve the efficiency of financial flow management and by researchers to enhance the effectiveness of scientific work in this domain.

Financial regulation is an important component of long-term planning of domestic enterprises. The purpose of the article is to investigate the methods of financial regulation of the activities of state and economic enterprises in modern society of the financial and economic conditions. The process of financial regulation actively affects all aspects of the enterprise activities through the selection of financing objects, allocation of funds, depending on their targets, promotes rational use of financial resources, involves the development and justification of planned indicators characterizing the development of the economy in the future. The function of financial regulation in the enterprise management system is one of the basic, central functions that determines the final results of production and sales, economic, financial and investment activities. The mission of financial regulation is to identify the enterprise’s general need for financial resources, in the extent that will ensure its normal activity along with the fulfilment of obligations to its creditors, such as banks, the budget, etc. Financial regulation covers the most important aspects of the financial and economic activity of the enterprise, ensures appropriate control over the formation and use of material, labour and monetary resources, creates conditions for strengthening the financial state of the enterprise. The research methodology is based on general research methods of analysis and synthesis, induction and deduction, observation and abstraction, which are used to systematize the achievements of the theory and practice of modeling the financial system of enterprises. The results of the study showed that the methods of financial management must be actively used in the activities of state and economic enterprises. There can be distinguished the following types of financial regulation: tactical regulation; strategic regulation. Implementation of financial regulation is carried out on the basis of five consecutive stages: analysis of the financial situation, development of the enterprise’s financial strategy, drafting and adjustment of current financial plans, development of operational financial plans. The process of financial regulation is characterized by the general and special principles. Practical implications. At the state-owned enterprises, the process of financial regulation should be implemented through budgeting. Budgeting is a tool for implementing the strategy of the state-owned enterprise, because it ensures an inextricable connection between strategic goals and plans aimed at achieving them. There are the following principles of budgeting organization: unity, separation of income and expenses, balance, independence, completeness of reflection of income and expenses in the budget, general coverage of expenses, efficiency of the use of funds, reliability. The principles of budgeting are as follows: integration, consistency, regulatory approach, end-to-end budgeting, decomposition, economic integrity, and methodological comparability. The main elements of the budgeting system are as follows: financial structure, budget structure and regulations on budget management. Financial regulation of economic enterprises is carried out on the basis of financial indicators, which are formed in the process of all its activities and determined on a certain specific date. A set of methods for assessing the enterprise’s financial indicators is divided into two groups: express diagnostics and fundamental diagnostics of the stability of business operation. Financial indicators are the state of financial resources, their distribution and use, which ensures the development of the enterprise based on the growth of profit and capital while maintaining solvency and creditworthiness under the conditions of an acceptable level of risk. The data characterizing financial indicators of the enterprise mostly include liquidity and solvency, financial stability, business activity, profitability of the enterprise. In order to obtain complete information about the level of sustainability of the enterprise development, the analysis of the current (operational) financial sustainability and the assessment of the prospects for its preservation in the future are carried out. The enterprise’s liquidity is evaluated according to the following indicators: absolute liquidity ratio, quick liquidity ratio, total liquidity ratio (coverage). The following indicators are used to assess financial stability: coefficient of autonomy (concentration of the equity capital), coefficient of manoeuvrability, coefficient of providing assets with the working capital, debt ratio (the ratio of equity and borrowed capital), leveraged capital structure ratio, coefficient of business activity, profitability ratio. Value/originality. The system of measures for financial regulation of enterprises should provide for constant monitoring of the external and internal state of enterprises, the development of measures to reduce the external vulnerability of enterprises, the development of preparatory plans in case of problematic situations, the implementation of preliminary measures to ensure them, the implementation of plans for practical measures in case of a crisis situation, the adoption of risk and non-standard solutions in case of deviation of the development of the situation, coordination of actions of all participants and control over the implementation of measures and their results.

Social and economic activities, like religion, entertainment, education, research, and the production of other goods and services, are carried on by different types of organizations, for example, corporations, proprietorships, partnerships, mutuals and nonprofits. There is competition among organizational forms for survival. The form of organization that survives in an activity is the one that delivers the product demanded by customers at the lowest price while covering costs. The characteristics of residual claims are important both in distinguishing organizations from one another and in explaining the survival of organizational forms in specific activities. This paper develops a set of propositions that explaim the special features of the residual claims of different organizational forms as efficient approaches to controlling agency problems. © M. C. Jensen and E. F. Fama, 1983 Michael C. Jensen, Foundations of Organizational Strategy Chapter 6, Harvard University Press, 1998. Journal of Law & Economics, Vol XXVI (June 1983) This document is available on the Social Science Research Network (SSRN) Electronic Library at: http://papers.ssrn.com/sol3/paper.taf?ABSTRACT_ID=94032 AGENCY PROBLEMS AND RESIDUAL CLAIMS

PurposeThe involvement of politicians in the introduction and use of financial management techniques in the public sector deserves more attention. This paper analyses the influence of members of Parliament (MPs) on the development of financial management regulations for Dutch central government executive agencies.Design/methodology/approachThis paper uses desk research and analyses formal evaluation reports, as well as minutes of meetings of Parliament to analyse the influence of MPs on the changes in financial management regulations.FindingsMPs' influence on the change of prescriptions seems to have been small. The authors observe that modifications were most often already formulated in general evaluation reports by the Ministry of Finance, in advance of parliamentary debates. The analysis also reveals that the criteria to be met by the executive agencies became more detailed in the initial years of the agency model and became more global in recent years.Research limitations/implicationsThis paper aims to contribute to the literature on the influence of politicians on financial management regulations.Practical implicationsThe paper shows that the influence of MPs on the prescriptions is quite small in daily practice and therefore, their role in the legislative process, as far as financial management techniques are concerned, is limited.Social implicationsThe results show that politicians are both in charge of, as well as subject to NPM-inspired financial management regulations, whereas their influence on the rules is small. The authors advise to further analyse this, as well as to explore how their role can be enlarged.Originality/valueThe interplay between politicians and financial management techniques in general, and the influence of MPs on the legislative process in specific, is an underresearched area. This paper aims to contribute to this literature and shows that the influence of MPs on the development of financial management regulations is limited. Several changes were made in these prescriptions in a period of more than 25 years, whereas discussions in the Parliament hardly played a role in these modifications.

Abstract: This book presents an in-depth analysis of how artificial intelligence (AI) is transforming financial technology (FinTech) by automating fraud detection and enhancing financial risk management. It builds upon foundational concepts in machine learning, deep learning, and natural language processing to develop an interdisciplinary framework that integrates computational finance, regulatory technology, and ethical governance. The central problem addressed is the increasing complexity and scale of fraud and risk in digital financial ecosystems, which traditional systems struggle to detect and mitigate in real time. Using a combination of algorithmic modeling, comparative analysis, and real-world case studies, the book explores both supervised and unsupervised AI techniques deployed in fraud detection, including anomaly detection, behavioral modeling, and adversarial resilience. It also investigates how deep learning architectures support real-time credit risk profiling and portfolio risk forecasting. Methodologically, the book synthesizes quantitative model performance evaluation with regulatory compliance assessment, drawing from international standards such as the EU AI Act and Basel Committee principles. Key findings highlight the superior adaptability, precision, and scalability of AI-based models compared to traditional rule-based systems. However, the book also critically evaluates ethical concerns, legal constraints, and data governance challenges. By proposing a future-oriented governance and design framework, this work provides actionable insights for financial institutions, regulators, and researchers aiming to implement responsible AI in high-stakes financial environments. The analysis offers a rigorous foundation for aligning technological innovation with robust financial integrity and regulatory resilience. Keywords: Artificial Intelligence, FinTech, Fraud Detection, Financial Risk Management, Machine Learning, Deep Learning, Regulatory Technology, RegTech, Anomaly Detection, Credit Scoring, Risk Modeling, Compliance Automation, Algorithmic Governance, Financial Ethics, Explainable AI, Federated Learning, Systemic Risk, Data Privacy, AML, KYC, Financial Regulation

Taming the Green Swan: a criteria-based analysis to improve the understanding of climate-related financial risk assessment tools

The French Football Federation was the first football governing body to put in place, in 1990, a financial regulation system. It might be expected that UEFA’s Financial Fair Play (FFP) system established in 2010 would be similar to French DNCG (National Direction for Management Control) regulations. However, while FFP is concerned with profitability, DNCG is focused on solvency. Hence, a French club may be loss-making and not compliant with FFP, while at the same time being solvent in accordance with DNCG rules. Our research confirms that most French clubs do not conform to FFP rules. As such, it provides further evidence that DNCG has not prevented poor financial management within French clubs. The coexistence of DNCG and FFP– or any other domestic financial regulation and FFP –may result in disparities between domestic clubs. As a consequence, there should be consistent financial regulation in all European leagues.

This article examines the future trends and problems of financial risk management. The assessment focuses on the historical advancements and present state of financial risk management. Next, the essential characteristics of the financial sector in the digital economy are examined. The ongoing advancements in technology, namely in computing and telecommunications, are believed to significantly impact the future progress of financial risk management. The utilization of evidence and economic analysis in the formulation of policies is increasing, and this trend is also observed in the establishment of accounting standards and financial regulation. This article explores the potential of evidence-based policymaking in accounting and financial markets, as well as the obstacles and prospects for research that supports this effort. Utilizing sound theoretical principles and strong empirical evidence should ideally result in improved policies and regulations. However, despite its clear attractiveness and significant potential, implementing evidence-based policymaking is more challenging than just requesting it. This text discusses the future trends and problems of financial risk management in the digital economy, taking into account the historical and current practices of financial risk management and the overall trends in the financial industry. Lastly, this section has implications for financial institutions, enterprises, and emerging economies.

This article examines the future trends and problems of financial risk management. The assessment focuses on the historical advancements and present state of financial risk management. Next, the essential characteristics of the financial sector in the digital economy are examined. The ongoing advancements in technology, namely in computing and telecommunications, are believed to significantly impact the future progress of financial risk management. The utilization of evidence and economic analysis in the formulation of policies is increasing, and this trend is also observed in the establishment of accounting standards and financial regulation. This article explores the potential of evidence-based policymaking in accounting and financial markets, as well as the obstacles and prospects for research that supports this effort. Utilizing sound theoretical principles and strong empirical evidence should ideally result in improved policies and regulations. However, despite its clear attractiveness and significant potential, implementing evidence-based policymaking is more challenging than just requesting it. This text discusses the future trends and problems of financial risk management in the digital economy, taking into account the historical and current practices of financial risk management and the overall trends in the financial industry. Lastly, this section has implications for financial institutions, enterprises, and emerging economies.

Artificial Intelligence (AI) has emerged as a transformative force in various domains, including tax compliance and financial regulation. This review explores the pivotal role of AI in enhancing these critical aspects of governance and economic stability. In the realm of tax compliance, AI-driven solutions offer unprecedented opportunities for governments to streamline tax administration processes, detect non-compliance, and mitigate tax evasion. Machine learning algorithms can analyze vast volumes of financial data with remarkable speed and accuracy, identifying patterns indicative of tax fraud or evasion. Furthermore, AI-powered predictive analytics enable tax authorities to anticipate taxpayer behavior and allocate resources effectively for enforcement purposes. By leveraging AI, governments can enhance revenue collection efficiency while minimizing compliance burdens on taxpayers. In financial regulation, AI technologies play a crucial role in monitoring and enforcing compliance with complex regulatory frameworks. With the exponential growth of financial transactions and the increasing sophistication of financial instruments, traditional regulatory mechanisms often struggle to keep pace. AI systems equipped with natural language processing capabilities can sift through immense volumes of regulatory documents and financial data to identify potential violations and assess systemic risks. Moreover, AI-based risk assessment models enable regulators to proactively identify emerging threats to financial stability, thereby facilitating timely interventions to prevent crises. However, the integration of AI in tax compliance and financial regulation also presents challenges and ethical considerations. The reliance on algorithmic decision-making raises concerns regarding transparency, accountability, and bias mitigation. Moreover, the proliferation of AI-driven solutions may exacerbate existing socio-economic disparities, as access to advanced technology remains uneven across jurisdictions and economic strata. While AI holds immense promise for enhancing tax compliance and financial regulation, its implementation must be accompanied by robust governance frameworks and ethical guidelines. Collaborative efforts between policymakers, regulators, and technology developers are essential to harnessing the full potential of AI while safeguarding against unintended consequences. Through responsible deployment and continuous refinement, AI can serve as a powerful tool in promoting fiscal transparency, regulatory effectiveness, and economic resilience. Keywords: Artificial Intelligence, Tax, Financial, Compliance, Regulation, Review.

This Article offers an account of financial regulation that is focused on the types of regulatory strategies that financial regulators employ. Noting the lack of prior academic work in this area, the Article presents a taxonomy of strategies, consisting of rulemaking, supervision, certification, and enforcement, and argues that regulators actively choose between versions of strategies that require their direct input and immediate expenditure of regulatory resources (public regulatory strategies) and strategies that delegate the burden of regulation onto private actors (private regulatory strategies). This choice affects the nature and effectiveness of financial regulation, both in terms of the degree to which financial regulation relies on self-regulation, gatekeepers, private rights of action, and other private strategies and the manner in which the interests of private parties involved in private strategies are aligned with those of the public. As the primary difference between public and private regulatory strategies is the immediate cost to the regulator, this Article further argues that the availability of resources is the primary determinant of the types of regulatory strategies selected by financial regulators. This Article then explores two implications of the role of resource constraints on financial regulation. The first is an explanation for the oft- noted “sine curve of regulatory activity,” a cyclical pattern of lighter to heavier regulatory activity before and after a financial crisis or scandal. In the aftermath of any such financial crisis or scandal, regulators face intense pressure to demonstrate they are in control of the financial markets and, therefore, rely more on public strategies—strategies that give the regulator greater visibility and command. Eventually, however, resource constraints force regulators to seek more cost-effective regulatory strategies, driving them to rely more on private strategies. The second is what happens when regulators cannot easily access private strategies, such as in the case of systemic risk regulation. Under resource constraints, regulators resort to “blunter” public strategies that are less costly but are not as fine-tuned, such as proposals to create narrow banks or abandon traditional financial regulatory strategies in favor of extraregulatory solutions, such as bank fees and size limitations on financial institutions.

Understanding Financial Regulation

The football industry has grown consistently in the last three decades and now is capable to generate revenues for approximately 18.5 billions euros per year. Despite this growth, football teams failed to translate this opportunity into profits and financial sustainability, thus incurring in substantial losses. For this reason the Union of European Football Associations (UEFA) has issued a regulation to induce a change this behavior, reducing debt, decreasing employees costs and reaching the break event point. However, if we use the regulatory compliance management theory to analyse and predict the extent to which sports teams will comply with UEFA's financial regulations, we find that there are several reasons to believe that such compliance will not be achieved. Gathering data from Aida - Bureau van Dijk – we have investigated Italian teams compliance, comparing the economic results achieved before and after the introduction of the Financial Fair Play regulation in a nine-year period of observation. Result show that there are no significant differences in firms’ performance, thus our hypothesis has been confirmed. Furthermore, we have investigated if any remarkable change has been produced in terms of competition in the Italian major football league. Consistently with our hypothesis, results confirm that an unwilling process of concentration, in terms of on the field results, is taking place.