Regulatory Arbitrage
/ˌrɛɡjʊˈleɪtəri ˈɑːrbɪtrɑːʒ/
Definitions
- (n.) The practice of exploiting differences between regulatory systems to circumvent unfavorable regulation.
Financial institutions used regulatory arbitrage to minimize capital requirements by shifting assets across jurisdictions.
Forms
- regulatory arbitrage
Related terms
See also
Commentary
Often involves complex cross-border activities; drafting anti-arbitrage rules requires careful consideration of jurisdictional scope and regulatory harmonization.
This glossary is for general informational and educational purposes only. Definitions are jurisdiction-agnostic but reflect terminology and concepts primarily drawn from English and American legal traditions. Nothing herein constitutes legal advice or creates a lawyer-client relationship. Users should consult qualified counsel for advice on specific matters or jurisdictions.