Compliance Instruments Research Articles

Regulatory Analysis of Government Compliance in Mexico

This research work aims to identify the origin, concept and scope of government compliance. It also seeks to locate the history of regulation of corporate and governmental conduct. Finally, an analysis of the various government compliance instruments introduced in the Mexican legal system is carried out. Based on the above, the conclusions obtained will be presented. This research work obtains its justification in the duty of vigilance in charge of every administrator as he is obliged to introduce measures aimed at preventing the risks to which his activity is exposed in order to avoid, control and, where appropriate, compensate for the damages perpetrated against human rights, fundamental freedoms, so it is not simply a matter of obtaining a compliant opinion but of actually preventing the generation of a risk and therefore avoiding damage and inspiring confidence by fostering a good organizational reputation. In its daily work, the Public Administration is exposed to a variety of risks, which means introducing a set of processes within the scope of its own structure to guarantee respect for behavioral rules. Government compliance encompasses the adoption of a series of provisions that impose respect for objectives of general interest that range from the fight against corruption, child labor, terrorism, environmental protection, etc. Government compliance, as a means of controlling the actions of public entities, imposes structural commitments on public administrators such as the establishment of a cartography of systemic risks, the implementation of a behavioral code, which is why they are mechanisms of obtaining results and satisfying the objectives set or that are inherent to their public function. It is then about assuming and respecting values aimed at preserving the state's heritage, its organizational reputation and thereby providing credibility to public institutions, whether in the face of those individuals, their associates or the national states with whom they have entered into or intend to formalize alliances.

Knowledge Level with Community Compliance in Implementing Covid-19 Prevention Health Protocols

Covid 19 is a type of virus that spreads very quickly or infects other people. Most Indonesians do not comply with the government's recommendation to comply with health protocols. The purpose of this study was to analyze the level of knowledge with compliance in the Covid-19 health protocol. This study used a cross sectional approach. Samples were taken by accidental sampling technique as many as 154 people in RW 03 Manukan Kulon Village, Surabaya City. The variable level of knowledge and compliance instrument used a questionnaire. Data were analyzed using Spearman Rho's test with a significance degree of 0.05. The results showed that there was a relationship between the knowledge level variable (0.040) and compliance with the Covid-19 health protocol in RW 03, Manukan Kulon Village, Surabaya. The level of knowledge is very influential on compliance in carrying out health protocols. The implication of this study is that the level of knowledge affects the community's compliance with health protocols.

A blockchain framework for digitizing securities issuance: the case of green bonds

ABSTRACT Bond issuance is a highly technical and complicated process, including disparate regulatory frameworks, limited traceability and auditability, settlement failures, and mutually untrusted stakeholders. Green bond issuance presents additional challenges, as the qualification of a bond as ‘green’, third-party verification is needed to guarantee that the proceeds fund environmentally beneficial projects. This implies additional administrative and compliance costs. Blockchain technology can address some of the issues mentioned above, to establish trust in impact reporting green bond processes. To this end, we propose a blockchain-enabled green bond issuance architecture that safeguards investors' confidence in the bond's green credentials while keeping the issuer from being accused of greenwashing. To adjust the process of bond issuance to a blockchain-enabled model, we tokenize the bonds. The digital token is created through a smart contract with a specific standard (in our case, ERC-20). Within the smart contracts developed, we use various functions to handle the prerequisites of validators and regulators' approval based on the documentation presented and the parameters of rate and maturity requested by the issuer. We use a separate smart contract to offer forensic-by-design services. The overall system also considers various regulatory compliance instruments and enhances the access of regulatory bodies to issuance records.

Assessing the impact of enforcement and compliance with minimum staffing standards on the quality of care in nursing homes: Evidence from the Centers for Medicare and Medicaid Services' staff star rating downgrade policy.

Policymakers have historically attempted to influence quality in nursing homes through the imposition of minimum staffing standards and through the public dissemination of quality on websites like Care Compare. One current Federal standard necessitates a registered nurse (RN) on duty for at least eight consecutive hours each day. In 2018, the Centers for Medicare and Medicaid Services announced that they would incentivize compliance with this requirement by downgrading nursing homes with 7+ days without an RN present during the quarter by one star on their Care Compare staffing domain quality rating. This study evaluates the impact of this new enforcement mechanism. Using an intent-to-treat sample of nursing homes at risk for downgrade with difference-in-differences and event study models, it finds that the policy increased compliance and staffing levels. Using the policy to instrument for full compliance, it finds that the daily presence of an RN causally improves several quality dimensions.

Informal compliance mechanisms in the EU ‘development’ and ‘integration without membership’ association agreements: a quest for capacity and ownership?

ABSTRACT Association Agreements between the EU and third countries lie at the heart of the EU’s foreign policy. The Association Agreements the EU concluded with Eastern Neighbours and the Caribbean Forum and Central American countries are marked with partner countries’ ambitious obligations, and the multi-instrument toolbox the EU applies to ensure partner countries’ compliance, including official consultations and dispute settlement. Nevertheless, the EU has demonstrated to prefer informal compliance instruments, such as statements or informal meetings in both the ‘integration without membership’ and ‘development’ contexts. The article focuses on the rationale behind the EU’s preference for ‘soft’ compliance instruments. It isdemonstrates that the European Commission and Delegations may in many cases prioritize partners’ commitment to and ownership of change over a particular result (compliance), despite being able to make use of the asymmetries of its power relations with partner countries. The confluence of the EU’s or Member States’ strong interest in a partner country’s compliance with a specific obligation and the persistence of non-compliance will, nonetheless, lead to the recourse to formalized compliance mechanisms. The focus on the management perspective of compliance in isolation from formal enforcement mechanisms is presented as hardly possible, notwithstanding the EU’s quest for ownership.

Elevating Financial Reporting Beyond a Mere Compliance Instrument*

ABSTRACTWe highlight how complying with detailed professional accounting rules can lead to lies and undermine the overall objectives of financial reporting. We do so by conducting a retrospective analysis (using the argumentation concepts of premise, qualifier, data, and conclusions) of the reasoning of the two expert accounting witnesses in the criminal trial in 2006 of Enron's president (Lay) and CEO (Skilling). We make two recommendations that are intended to elevate financial reporting beyond a mere compliance instrument and to help it conform better with the idea of fair presentation. First, we call for the objectives of financial reporting to be installed as the overarching premise in a conceptual framework (CF) for GAAP‐based financial reporting. The remainder of the CF should provide essential guidance to meet those objectives. Second, we recommend that the needs of users of financial reports should be prioritized by developing ethical forecasting principles and better ways of assessing and reporting the accounting estimation uncertainties that are identified in the IASB's (2018) revised CF. We contend that a CF with the more detailed standards should guide professional judgment on the concept of accounting risk and provide guidance on an acceptable level of this risk for various line items on the financial statements. Ideally, accounting risk should be less than 0.50 so that the probability that the reported number is materially accurate is at least 0.50. This requirement is necessary for the various types of accounting estimates to be sufficiently truthful for ethical financial reporting. This will render GAAP and financial reporting more reliant on cogent reasoning and argumentation.

A Block-Chain Framework for Increased Trust in Green Bonds Issuance

Bonds issuance is a highly technical and complicated process, entailing mutually untrusted stakeholders with sometimes conflicting objectives. Currently, the global bond market is faced with several pain points when it comes to bond issuance, like disparate regulatory frameworks, limited traceability and auditability, settlement failures, and inefficient issuance processes. Block-chain technology is capable of addressing some of the issues mentioned above. In this paper, we propose a block-chain-enabled green bond issuance architecture. In particular, we develop an adaptable and efficient system that reduces the intermediary costs and offers compliance, scalability, confidentiality, and security. The block-chain-enabled system also acts as a transparent yet fully controllable decentralized authority where the funds of qualified, environmentally friendly projects could be traced. Our proposed architecture considers the various aspects and the complexity of the bond issuance procedures and the special requirements of green bonds. The architecture is based on a five-step model from green bond initialization to archiving. To adjust the processes of bond issuance to a block-chain-enabled model, we use digital tokens based on the ERC-20 token standard. Within the smart contracts developed, we use various functions to handle the prerequisites of validators and regulators’ approval based on the documentation presented and the parameters of rate and maturity requested by the issuer. We use a separate smart contract to implemented forensic services. The overall system also considers various regulatory compliance instruments and enhances access of regulatory bodies to issuance records. We believe that the proposed architecture could be of significant value to researchers and practitioners from the financial domain.

An open-source model of the Western Climate Initiative cap-and-trade programme with supply-demand scenarios to 2030

ABSTRACTThe Western Climate Initiative (WCI) cap-and-trade programme consists of two linked carbon markets in California and Québec. It is intended to play a central role in reducing greenhouse gas emissions pursuant to both jurisdictions’ 2030 limits on economy-wide emissions, but the programme features a growing bank of surplus compliance instruments (allowances and carbon offsets) that could put participating governments’ climate targets at risk. To aid in understanding the range of possible outcomes, we built WCI-RULES, an open-source model that simulates the WCI programme’s supply-demand balance through to 2030. By using the latest historical data and representing all relevant programme regulations in computer code, WCI-RULES accurately depicts the supply side of the WCI programme and allows users to explore programme outcomes across a range of future demand-side scenarios. Model users can specify three demand-side inputs that have the largest effect on projections of the programme’s supply-demand balance: future trends in emissions covered by the programme, allowance auction outcomes, and regulated parties’ use of carbon offset credits. The model simulates neither allowance prices nor price-induced mitigation, but is interoperable with other analyses that do, and can therefore serve as a basis for inter-model comparison with other studies. We find that oversupply conditions persist across a wide range of scenarios, including one that matches the assumptions of California’s official 2030 climate strategy. If unaddressed, these conditions could frustrate participating governments’ ability to reach their economy-wide 2030 climate targets.Key policy insightsWCI programme caps have exceeded regulated emissions since the programme’s inception, creating an oversupply that could jeopardize the programme’s ability to achieve its expected emission reductions.Using a new open-source model, WCI-RULES, we show that oversupply conditions persist across a range of modelled emission scenarios through to 2030, so that emissions could significantly exceed programme caps in the mid-to-late 2020s.If regulated emissions exceed programme caps in the mid-to-late 2020s, it will be difficult for California and Québec to reduce their economy-wide emissions below statutory limits.WCI-RULES can be extended in future work to simulate the effects of potential regulatory reforms as well as any new entrants to the WCI programme.

DPIAs in practice – a strategic instrument for compliance

With the GDPR, DPIAs have become mandatory for processing activities that are likely to result in a high risk for the rights and freedoms of data subjects. In the Netherlands, since 2011, DPIAs have been mandatory for the government when drafting new legislation or introducing new systems that imply processing of personal data of citizens. Now, no longer only government but also other entities have to conduct DPIAs. The obligation lies on the data controller, but occasionally, processors can choose to perform their own DPIAs as well, for instance if they offer standardized services or systems to controllers. This enables controllers to easier demonstrate them being in control, while at the same time it saves time and money for the processor by preventing repeating work for several different clients. This contribution gives an overview of the main insights from the practice of DPIAs and challenges that come along. Then, the case of hyperscale providers is taken as an example to illustrate challenges, but also to show that DPIAs can be used as a strategic instrument for compliance. Finally, some key messages are shared.

Налоговый комплаенс как инструмент дерегулирования экономики (Tax Compliance as a Tool for Deregulating the Economy)

Russian Abstract: В работе были проанализированы международные стандарты в сфере налогового комплаенса, практика стран ОЭСР и партнеров ОЭСР по применению и внедрению инструментов налогового комплаенса. English Abstract: The work analyzed international standards in the field of tax compliance, the practice of OECD countries and OECD partners in the application and implementation of tax compliance instruments.

Tracking banking in the Western Climate Initiative cap-and-trade program

The Western Climate Initiative is a multilateral cap-and-trade program in California and Québec. The California climate regulator has called for cap-and-trade to deliver nearly half of the emission reductions needed to achieve the state’s legally binding limit on greenhouse gas emissions in 2030, making the program the single biggest driver of the state’s post-2020 policy portfolio. However, the program’s supply of compliance instruments has persistently exceeded emissions subject to the program—a condition known as overallocation, which independent studies have projected may continue into the mid-2020s. If market participants purchase and bank excess compliance instruments for future use, they may be able to comply with the program’s regulations while nevertheless emitting significantly in excess of the state’s legally binding 2030 limit. Here, we present methods for tracking observed banking behavior on both an annual and multi-year compliance period basis. By the end of 2018, market participants had already acquired more unused compliance instruments than the regulator anticipated for 2020. The size of the private bank is now comparable to the cumulative mitigation expected from the program over the period 2021 through 2030, raising questions about the program’s ability to achieve its expected reductions. Beyond diagnosing market conditions, banking metrics can also help policymakers design dynamic program reforms that increase program stringency conditional on observed market behavior deviating from expectations.

New paths of research in the European Commission’s compliance practice: the example of Poland

The article explores the potential for new research into issues of state non-conformity as a result of increasing euro-skepticism in Europe. Relying on the Polish example, it suggests that a new attitude towards the EU has arisen which escapes traditional classifications and warrants a rethinking of established theories on sources of non-compliance. This attitude gives new context to the Commission’s existing enforcement practice and calls for a fresh look at its compliance instruments not only with respect to infringement cases but also in its dispute with Poland over the rule of law principle where the conduct of both parties seems to be symptomatic of their more general approaches.

Hubungan Kepatuhan Hemodialisis Dan Dukungan Sosial Terhadap Kejadian Rawat Inap Ulang Pasien Hemodialisis

Rawat inap ulang pasien HD mememiliki dampak negatif terhadap pasien dan keluarga yaitu dapat meningkatkan beban emosional pasien dan keluarga sehingga menyebabkan turunnya kualitas hidup pasien. Tujuan penelitian ini adalah untuk mengetahui hubungan kepatuhan hemodialisis dan dukungan sosial terhadap kejadian rawat inap ulang pasien hemodialisis. Desain penelitian menggunakan pendekatan cross sectional dengan total sampel 111 pasien hemodialisis dengan teknik consecutive sampling. Instrumen yang digunakan dalam penelitian ini adalah intrumen kepatuhan HD dengan menggunakan 1 item pertanyaan mengenai hemodialisis dan ENRICHD Social Support Instrument (ESSI). Data diolah dengan menggunakan program software komputer dan dilakukan analisis bivariat menggunakan Mann Whitney. Hasil analisis menunjukkan bahwa terdapat hubungan yang signifikan antara kepatuhan hemodialisis (p-value = 0,032) dan dukungan sosial (p-value = 0,0,34). Rekomendasi penelitian ini diharapkan perawat meningkatkan pemberian edukasi terhadap pasien dan keluarga tentang kepatuhan kehadiran hemodialisis.

Response biases in policy compliance research

PurposeThe purpose of this study is to use a developed and pre-tested scenario-based measurement instrument for policy compliance and determine whether policy compliance measurements in the current policy compliance research are biased as has been postulated during a pre-study. The expected biases are because of social desirability and because of biases based on identity theory.Design/methodology/approachA survey was conducted (n = 54) that used policy compliance scales from literature and the developed self-reporting policy compliance (SRPC) scale, along with the Marlow–Crowne social desirability (MC-SDB) scale. Differences between the policy compliance scales were assessed. Moreover, a transformation of the SRPC measurements into the literature-based scales was examined using pair-wise t-testing. Finally, correlations between the MC-SDB and the policy compliance scales were examined.FindingsThere are no significant influences on the desire for social approval of the respondents as was exhibited by the MC-SDB values and policy compliance on either scale. However, the SRPC scale measurements show deviations from the literature-based policy compliance scales. Individuals that exhibit secure behaviour, which is not rooted in a policy but rather in anything but the policy, are also captured as being policy compliant in the current scales. This shows that a response bias exists in current scales. Respondents, who perceive to exhibit secure behaviours, may think that they are in compliance with the policy, even when they are not.Practical implicationsThese findings mean that several contributions in the field of policy compliance must be questioned and that a revisit of several factors influencing policy compliance may be required.Originality/valueTo the best of the authors’ knowledge, response biases in policy compliance research have not been considered to date.

Determinants of Capacity Utilization of Food and Beverage Manufacturing Firms in Rwanda: Do Tax Incentives Matter?

This paper has the specific objective of determining main factors of capacity utilization in the food and beverage manufacturing industry which are likely to be positively affected by fiscal incentives. Data used are from the manufacturing industry comprehensive survey carried out by the Rwandese Ministry of Trade and Industry (MINICOM) during 2013-2014. The model used was derived from an augmented Cobb Douglass production function and estimated using Ordinary Least Square regression technique. Key outcomes which resulted from this study are (i) in the food processing industry, main factors which undermine the capacity utilization of firms are shortage of raw materials, lack of specialized technology, tax administration and standards; no factor favors significantly the capacity utilization in this sub sector; (ii) in the beverage manufacturing industry, drivers of capacity utilization are the firm experience (age) and its material-intensive characteristic. Four factors harm the capacity utilization of beverage manufacturing firms, namely oversize in terms of fixed assets, lack of working capital, standards and insufficient demand. Consequently, in order to boost the capacity utilization of food and beverage manufacturing firms, only non-tax incentives are advisable: in the food processing industry, capacity utilisation can be improved by easing tax administration and tax compliance instruments; guaranteeing availability of agro raw materials during all the year and reducing their cost; assisting firms, particularly young ones, in order to help them to acquire appropriate technology and to raise production standards.

A review of market‐based climate change regulation in Alberta's oil and gas sector

Alberta has implemented the Specified Gas Emitters Regulation to address the issue of growing greenhouse gas emissions. The regulation allows large emitting facilities to achieve emission reduction targets using market‐based compliance instruments. The goal of this analysis is twofold: (1) Overview market participants, composition, and offset management approaches and (2) discuss future corporate offset strategy options. Market participants are generally weighted toward firms in the electricity generation sector. In the oil and gas sector, while many firms participate in the offset market, a small number dominate. Market composition analysis of program compliance instruments over time offers insights regarding supply and demand. A program‐level view of all market‐based compliance instruments, as well as offset credits specifically, shows how major policy changes can transform market dynamics. Corporate offset management approaches of firms in the oil and gas sector are then analyzed and categorized into one of three approaches: development, sourcing and use, and banking. Based on the analysis, a discussion of future offset strategy options for firms operating under the regulation is provided for a range of policy scenarios. The analysis serves to inform regulated emitters in the private sector exposed to newly enacted or increasingly stringent regulation by assessing the current state of activities and providing insights of emergent strategies. WIREs Energy Environ 2018, 7:e277. doi: 10.1002/wene.277This article is categorized under: Fossil Fuels > Climate and Environment Energy and Climate > Climate and Environment Energy and Climate > Economics and Policy Energy Policy and Planning > Climate and Environment

Carbon price interaction between allocated permits and generated offsets

The Kyoto Protocol established targets for curbing greenhouse gas emissions in order to mitigate climate change, and it introduced two kinds of market-based mechanisms: the emission allowance market and the carbon offset market. We identify stylized features of the two mechanisms with a partial equilibrium model. Our work is the first to derive a closed form solution incorporating most policy instruments, such as abatement and offset usage, and delivery risks in offsets. We show that policy changes will impact one market directly and the other indirectly, generating unequal price responses that affects the spread between the two compliance instruments. We show how the price spread between allowances and offsets is affected by market conditions such as the offset import limit, abatement and offset cost, penalty rate, emission cap, and baseline emissions.

INDONESIA SHARI'AH COMPLIANCE STOCK RETURN BEHAVIOUR

This study aims to measures the behaviour of Indonesia Shari'ah compliance stock return. The measurement of return behaviour toward volatility will proved the capability of Indonesia Shari'ah compliance toward volatility that happened in Indonesia during the period of observation. Investing in Shari'ah compliance is quite different than investing in conventional stock which followed the capital market set of rules and law, Shari'ah compliance follows not only the capital market set of laws and but also the Islamic principles of principles. Most of the previous studies examine issues related to the conventional stocks and market. The present study take one step further by investigating issue related to Shari'ah compliance instrument. In the case of Shari'ah stock price in Indonesia, the dynamics volatility of the stock price can be minimized by taking an integrated screening process to the listed company, as precautions steps toward volatility

Test instrument for the automatic compliance check of cast resin insulated windings for power transformers

Abstract In this paper a new instrument specifically designed for the compliance check of windings for Medium Voltage/Low Voltage (MV/LV) cast resin insulated power transformers is presented. The proposed instrument, based on the SFRA (Sweep Frequency Response Analysis) measuring technique, has been designed to carry out automatic measurements during the industrial production of the windings. In this paper the main hardware and software instrument features are presented, with particular consideration of the algorithm adopted for the compliance check. Finally, results obtained during both the lab instrument characterization and the on-field validation at the BTicino winding production factory is also presented.

Interdependency of Aid Effectiveness and Good Governance

The spirit of this article is to offer a fresh perspective related to the future of aid as a way of informing the ongoing discourse on development assistance to the benefit of policy makers and key stakeholders. It suggests that aid deployment ought to change in such a way as to improve governance and has shown where and how. We explore governance’s focus as well as the World Bank dimensions. Under focus, we concentrate on the transparency of government, the simplicity of procedures, accountability and responsibility, the need to fight against corruption, individual freedom and collective expression, and independence of the legal system. For the World Bank dimensions, the concentration is on: voice and accountability, political stability and the absence of violence, government effectiveness, regulatory quality, rule of law, and control of corruption. With respect to regulation and corruption, we address whether to use market-based or regulatory measures, possible policy instruments, implementation issues, and difficulties and problems. Under possible policy instruments, mandatory policy instruments, voluntary agreements, compliance instruments, and precautionary measures are explored. Implementation issues include introductory matters, costs, free riding and voluntary agreement and compliance. In addition, we examine difficulties associated with distributional issues, compensation, regulatory capture phenomenon, and the effect on innovation. Regarding corruption, we examine its definition, state capture versus conventional corruption, corrupt acts, forms of corruption, hypothetical causes of corruption, some analytical points, theoretical consequences, unbinding bribery, incidence of corruption, fraud, and control measures.