Show Summary Details

Page of

PRINTED FROM OXFORD HANDBOOKS ONLINE (www.oxfordhandbooks.com). © Oxford University Press, 2018. All Rights Reserved. Under the terms of the licence agreement, an individual user may print out a PDF of a single chapter of a title in Oxford Handbooks Online for personal use (for details see Privacy Policy and Legal Notice).

date: 19 January 2020

Abstract and Keywords

Gatekeepers are financial intermediaries that operate between issuers and investors. This Chapter considers their potentially valuable role in the financial market, examines gatekeeper failures, and analyses recent attempts at regulation. Limitations on the effectiveness of gatekeepers as an investor-protection device largely concern the conflict of interest arising from their funding model, but are exacerbated by factors which reduce a gatekeeper’s incentive to perform its role well, including both a lack of market competition and litigation risk, and, in relation to credit rating agencies, the development of a regulatory licence. This Chapter assesses the likely success of the regulatory measures put in place to address these issues. It concludes that, despite the raft of measures that have been introduced, regulators have largely failed to tackle the core issues that lead to gatekeeper failure. Although many measures that have been implemented are valuable, the overall effectiveness of the regulatory response may be doubted.

Keywords: gatekeepers, financial regulation, analysts, credit rating agencies, auditors, financial crisis

Access to the complete content on Oxford Handbooks Online requires a subscription or purchase. Public users are able to search the site and view the abstracts and keywords for each book and chapter without a subscription.

Please subscribe or login to access full text content.

If you have purchased a print title that contains an access token, please see the token for information about how to register your code.

For questions on access or troubleshooting, please check our FAQs, and if you can''t find the answer there, please contact us.