Voluntary Standards Markets

ISO defines a standard as "a document that provides requirements, specifications, guidelines or characteristics that can be used consistently to ensure that materials, products, processes and services are fit for their purpose". Standards are a voluntary, typically industry-driven, alternative to regulation through legislation or to the free market approach aiming to address perceived risks. While regulation is imposed and typically controlled by a quota of time or resource, a standard may emerge from market choice. Standards are part of market and can improve transparency as well as encourage better practice in a way that complements regulation while still supporting competition.

Voluntary Standards Markets in Finance

A joint BSI, CISI and Long Finance research project conducted between June and November 2013 explored how voluntary standards markets might be applied to financial services regulation and sought to provide independent verification of their potential in the financial services sector through events, interviews and an online awareness questionnaire. The resulting publication "Backing Market Forces: How to make Voluntary Standards Markets Work For Financial Services Regulation" was released in November 2013.

Backing Market Forces: How To Make Voluntary Standards Markets Work For Financial Services Regulation
by Michael Mainelli and Chiara von Gunten, Z/Yen Group,
BSI, Chartered Institute for Securities & Investment and Long Finance
November 2013, 72 pages

Related Project

• Opportunities for Standards Development in Selected Sectors of Finance

Related Publications

• "Opportunities for Standards in Insurance"
  by Chiara von Gunten, Therese Kieve, and Michael Mainelli
  BSI and Long Finance
  October 2014
  20 pages
• "Opportunities for Standards in Investment & Asset Management"
  by Chiara von Gunten, Therese Kieve, and Michael Mainelli
  BSI and Long Finance
  October 2014
  20 pages

Related Articles

• "Backing Market Forces: Voluntary Standards Markets And The Regulation Of Financial Services"
  by Chiara von Gunten and Michael Mainelli
  Securities and Investment Review
  Securities & Investment Institute
  November/December 2013
  pages 22-23
• "The Rules Of Practical Principles"
  by Michael Mainelli
  Journal of Risk Finance
  The Michael Mainelli Column Vol.8 (No.5)
  Emerald Group Publishing Limited (October 2007)
  pages 508-510
• "Risk and the Private Bank: Endless Regulatory Pressures"
  by Michael Mainelli
  Wealth Briefing
  Opinion of the Week
  June 2006
• “Standard Differences: Differentiation Through Standardisation?”
  by Michael Mainelli
  (ISO9001, SAS70 and management systems)
  Journal of Risk Finance
  The Michael Mainelli Column, Vol.6, (No.1)
  Emerald Group Publishing Limited (January 2005)
  pages 71-78

Related Events

• "Opportunities for Standards in Investment & Asset Management"
  BSI & Long Finance workshop
  London
  10^th July 2014
• "Opportunities for Standards in Insurance"
  BSI & Long Finance workshop
  London
  1^st July 2014
• "Voluntary Standards Markets and Investment & Asset Management"
  BSI & Long Finance workshop
  London
  24^th June 2014
• "Voluntary Standards Markets and Insurance"
  BSI & Long Finance workshop
  London
  11^th June 2014
• "The Future of Financial Standards"
  SWIFT
  SWIFT Institute and LSE, London
  25^th March 2014
• "Wake Up And Smell Up Standards: Backing Market Forces - Report Launch"
  CISI, BSI and Long Finance
  London
  18^th November 2013
• "Backing Market Forces: How To Make Voluntary Standards Markets Work For Financial Services Regulation" Presentation by Michael Mainelli
  CISI & EFFAS Conference on Long-Term and Sustainable Finance
  London
  14^th-15^th October 2013
• "How to Make Voluntary Standards Markets Work for Financial Services (Regulation)? Preliminary Research Findings"
  BSI, CISI & Long Finance workshop
  London
  10^th September 2013
• "The Role of Standards Markets in Finance"
  BSI, CISI & Long Finance workshop
  London
  10^th July 2013
• "Standards Markets: The Free Market Response to Regulation"
  Gresham Lecture
  London
  16^th October 2006
  (an easy-to-read-and-print transcript) — "Many societal goals for markets can be achieved with more innovative regulation using standards markets that seem to bridge the market-government divide. Standards markets, such as those based on the International Standards Organisation or the International Social and Environmental Accreditation and Labelling (ISEAL) Alliance, counter Screaming Lord Sutch's sublime question - 'Why is there only one Monopolies Commission?'"

In the Media

• "Standards: The Middle Way"
  by David Bannister
  Banking Technology
  20^th January 2014
• "Could A Banking Kitemark Aid Reform?"
  by Anthony Hilton
  London Evening Standard
  26^th November 2013
• "Who Sets Our Standards?"
  by Peter Day
  BBC 4 Radio
  1^st April 2010

Further Reading

• "Using Alternative Regulation to Achieve Policy Objectives"
  National Audit Office
  June 2014
• Z/Yen wiki