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[28 May 2025] CDL x CCLA Lunchtime Seminar: (De-)Regulating – Is Less More?

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CDL x CCLA Seminar: (De-)Regulating – Is Less More?


Synopsis

 

Presentation 1: Principles of Regulating Multinational Enterprises

Multinational enterprises (MNEs) are key players in a globalized economy and therefore a target of legal acts seeking to mitigate negative global societal impacts, such as climate change, violations of human rights, and arbitrage on State sovereignty and the international allocation of taxing rights. 

The paper (and related presentation) analyses the foundations of MNE regulation and argues that regulating MNEs is the archetype of regulating externalities: the negative impact of the MNEs’ activities is suffered by non-MNE actors and public goods, and in turn often the society at large. Examples include contribution to climate change, or tax optimization. 

Located within the broader context of the deregulation debate, reducing externalities is one important justification in favour of regulation. Yet, one specificity characterizes MNE regulation: due to their multi-national set-up, MNEs can opt into the overall legal regimes that best ensure their interests. The MNEs’ ability to engage in regulatory arbitrage justifies international harmonization approaches to MNE activity, such as those pursued by the OECD. 

We argue that regulation addressing externalities stemming from MNE activity should be governed by consistent principles, given that the addressees of regulation – the MNEs – are the same entities regardless of the field of regulation. The emergence and acceptance of consistent principles is indispensable for the success of international harmonization efforts: in the absence of principle-based MNE regulation, we expect arbitrage of MNE approaches, overburdening compliance costs, an enhanced degree of legal uncertainty, and eventually, negative impacts on overall economic activity. The former, if taken collectively, undermine both the rule of law and regulatory objectives of MNE regulation at large. The principles of MNE regulation we develop aim at a balanced, nuanced and focused approach to regulation that minimizes regulatory burden while upholding the key objectives of MNE regulation. 

In search of the consistent principles, this paper draws on examples of international and EU MNE regulation.

 

Presentation 2: Deregulating Financial Regulation

The purpose of financial regulation is to benefit society and/or regulated financial institutions. Where the benefits created by a given rule do not exceed their costs, there is a case for deregulation. 

While this principle is, to our knowledge, undisputed, and finance is particularly open to a strict cost-benefit-analysis of regulation given that it deals with monetary goods, bounded regulatory rationality and political influence on financial regulation have undermined the uniform acceptance of this principle, and the regulators’ mandates have been gradually expanded in turn, resulting in a state where financial regulation often regulates something different than finance, cost-benefit-analysis have become challenging, and the regulatory accountability for rules, but also the acceptance of rules by regulated entities have been undermined in turn. 

We argue that (targeted) deregulation of finance is desirable as it strengthens the implementation of accepted regulatory objectives, including financial stability, client/investor protection, market efficiency, market integrity, but also openness to innovation and sustainability. The deregulation of rules identified as over-regulation will result not only in better regulation, but also more effective enforcement of the remaining rules at lower costs for society and institutions alike – a socially desirable state. 

In turn, we present five principles about how to cure financial regulation. Where regulators see themselves as the bon père of financial systems rather than agents, avoid meaningless regulatory terminology, accept regulatory competition and practise sandbox thinking, deregulation cases will necessarily reveal themselves. And for the rest: when in doubt, deregulate!


SPEAKERS

Julia
Dr. Julia Sinnig
Assistant Professor
University of Luxembourg

Prof. Sinnig is assistant professor in commercial law at the Faculty of Law, Economics and Finance of the University of Luxembourg since September 2024. She obtained her PhD from the University of Luxembourg in the field of digitalisation and taxation in December 2020, for which she has received two international awards.

Her current research interests focus on the regulation of investment funds, taxation of investment funds, company and commercial law as well as inclusive, digital and sustainable finance. She is the author of more than 50 publications in the field of digitalisation, financial law, taxation, company and commercial law and investment fund regulation in Luxembourg, European and international law journals.

Prof. Sinnig has held presentations and lectures inter alia at Oxford University, LUISS Rome, WU Vienna, University of Lisbon, University Sorbonne/Paris I, and presented in front of regulators at the European Law Academy, the German Financial Regulatory Authority BaFin and the Asian Development Bank. She currently assists the Workstream 2 (“indirect exposures”) of the Consultative Working Group on Crypto-assets at the European Systemic Risk Board. 

Prof. Sinnig currently co-authors an article-by-article commentary on EU Sustainable Finance Regulation (CUP UK, 2026) and a book on Luxembourg investment fund regulation and taxation (Larcier, 2026). Further, she is involved in the leadership team of the interdisciplinary “FutureFinTech National Centre of Excellence in Research and Innovation”, funded by the Luxembourg National Research Fund. 

She publishes and teaches in French, English and German language. An overview of her research is available at: https://orbilu.uni.lu/profile?uid=50001935 and https://papers.ssrn.com/sol3/cf_dev/AbsByAuth.cfm?per_id=2744769.

 

Dirk
Professor Dirk A. Zetzsche
ADA Chair in Financial Law and Inclusive Finance
University of Luxembourg

Professor Zetzsche is Professor of Financial Law at the University of Luxembourg where he has held the ADA Chair in Financial Law (inclusive finance) since March 2016. He also functions as coordinator of the Faculty of Law, Economics and Finance's House of Sustainable Governance & Markets, the Co-Principal Investigator of the Future FinTech National Centre of Excellence in Research and Innovation, and, since Decembre 2024, as the Head of the Department of Law.

Prof. Zetzsche is listed by some rankings as Top 10 law scholar globally. His more than 400 publications focus on corporate governance and shareholder rights, inclusive and sustainable finance, FinTech/RegTech/CorpTech, and collective investment schemes. His latest two books "FinTech: technology, finance, regulation" co-authored with Professors Ross Buckley (UNSW Sydney) and Douglas Arner (HKU) and “The EU Law on Crypto-assets” (co-authored with Dr. Jannik Woxholth) have been published by Cambridge University Press in 2024 and 2025 respectively. His current projects include the fourth edition of his book “The Alternative Investment Fund Managers Directive”, a co-authored Article-by-Article Commentary on EU Sustainable Finance Law (to be published with CUP) and a co-authored monograph on Luxembourg investment fund regulation. Further, Prof. Zetzsche co-edits the most extensive corporate law expert commentary available in German language, the “Cologne Commentary on Corporate Law” (24 volumes, 20,000 pp., 4th edition 2020 to 2026), and co-authors a monograph on Inclusive Sustainable Finance Regulation with his standing co-authors, Professors Arner and Buckley (to be published with Oxford University Press).

Prof. Zetzsche advised many of the major regulators and legislators, such as the Financial Stability Board, the Bank for International Settlement, the Basel Committee, the European Commission, the European Parliament, the European Securities & Market Authority (“ESMA”), the European Banking Authority, the European Systemic Risk Board, the US Securities & Exchange Commission, as well as several central banks and securities regulators. He is currently member of ESMA’s Investment Management Committee and leads the Workstream 2 of the European Systemic Risk Board’s working group on crypto-assets, relating to “indirect exposures to crypto-assets”.

With the Alliance for Financial Inclusion IGF Working Group, Professor Zetzsche has co-authored the Roadmap for Inclusive Green Finance Implementation. Together with the Alliance for Financial Inclusion he currently leads a global study into the impact of financial inclusion on financial stability and financial soundness. In February 2023, he made the case for financial inclusion at the United Nations Social Commission. Some of Prof. Zetzsche’s research is available on SSRN: www.ssrn.com/author=357808


CHAIR

Nydia
Professor Nydia Remolina Leon
Assistant Professor of Law
Singapore Management University


DETAILS

Date: 28 May 2025, Wednesday

Time: 12:00pm to 2:00pm

Venue: Meeting Room 5-04, Level 5, Yong Pung How School of Law, Singapore Management University

(Bento lunch will be provided)
 

REGISTRATION

Please click HERE to register. 

Registration closes on 23 May 2025, 9am.