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An industry regulating itself is different from an organisation regulating itself. Self regulation of the industry is common as you say. It tends to involve on
by rkangel 3y ago
An industry regulating itself is different from an organisation regulating itself.
Self regulation of the industry is common as you say. It tends to involve one central body enforcing the standards on the members, and acting as a central point for agreement of the standards.
This is not the case with the Aviation regulation. The FAA is the regulator, and has delegated the testing to the people it is meant to be regulating.
- nerpderp82 3y agoSelf regulation would mean that the org should face much stiffer penalties for failing in its regulation related duties. The increased agency needs to also come with increased responsibility. Something like notaries, guilds or unions that can speak the truth without retribution ... No, we need independent regulation. We don't have the societal norms to pull off self regulation.
- mulmen 3y ago> Self regulation would mean that the org should face much stiffer penalties for failing in its regulation related duties. Why? How does this incentivize effective self-regulation? > No, we need independent regulation. We don't have the societal norms to pull off self regulation. We do though. This thread even points them out.
- nerpderp82 3y agoBecause they have autonomy. By having the regulators embedded, they can continually tell them how to improve. The regulation isn't to punish, but to conform and exceed to the specifications.
- mulmen 3y agoWho are the “they”s in this example? The more I read this comment the less I understand it. Can you try again?
- nerpderp82 3y agoWe are only talking about organizations that are participating in self regulation. Those that self-regulation have a greater duty to be truthful and in good faith, attempt to remain in compliance. If they cheat, not only should they lose the right to self regulate, but they should face stiffer penalties for breaking that trust.
- jncfhnb 3y agoThat’s largely fine though because the stick to enforce good diligence is the threat that the ability to self regulate is removed. As is being seen.
- Wytwwww 3y agoAfter (luckily) just a few hundreds of deaths
- bobthepanda 3y agoAlso, generally speaking, self regulation involves a third party, like an impartial industry wide organization or a competitor. Inspecting the self is a bit bonkers.
- beambot 3y agoProminent examples of "Self Regulating Organizations": The New York Stock Exchange (NYSE), The Financial Planning Association (FPA), Chicago Board of Trade (CBOT), American Council of Life Insurers (ACLI), Financial Industry Regulatory Authority, Inc. (FINRA), Fixed Income Clearing Corporation (FICC), Options Clearing Corporation (OCC), American Institute of Certified Public Accounts (AICPA) https://www.investopedia.com/terms/s/sro.asp https://www.investopedia.com/terms/s/sro.asp
- mattmaroon 3y agoBy organization he clearly meant single for-profit corporation. While the language was imprecise, he surely wasn’t referring to these types of entities.
- WrongAssumption 3y agoNYSE and CBOT are single for profit corporations.
- fakedang 3y agoNYSE is a for profit entity owned by Intercontinental Exchange. They also own Euronext. And they're regulated by the SEC, but carry out their own regulation efforts too. The parallel isn't that far off.
- fakedang 3y agoNYSE is a for profit entity owned by Intercontinental Exchange. They also own Euronext. And they're regulated by the Sec, but carry out their own regulation efforts too. The parallel isn't that far off.
- shutupnerd0000 3y agoAll very upstanding and incorrupt organizations
- vkou 3y agoWould you like to tell us how the NYSE is corrupt? Or do they just get tarred with 'Well, they work in finance, of course they are all crooks' brush?
- cycomanic 3y agoThat's sort of the same with the SEC and (parts of) financial industry? One can even argue the tax office is sort of like it.
- deleted 3y ago[deleted]
- f1shy 3y agoThat wasnot the OP question
- sircastor 3y agoAnd it's important to say that generally you want and industry to regulate itself. This prevents the regulation becoming a burden on the people, and maintains the threat that if the industry doesn't regulate itself then the government (the people) will regulate it. No industry wants oversight, so they do their best to stay in the lines.