The Regulators' Role: Making Rules to Reflect Moral Outrage

International debate continues over the right way to regulate corporations as the global financial crisis metastasises into its next form. The US's rules-based approach and the UK's governance principles no longer cut it. A major problem is that most regulatory systems are designed as a consequence of past failure and are incapable of dealing with new crises as they emerge. Regulators now must rise to the challenge of creating a forward-looking, dynamic system that also captures the moral outrage triggered by the ongoing crisis and redefines the meaning of integrity, says Justin O'Brien, an expert in financial regulation at the University of New South Wales.