Research

Analysing Britain's regulatory burden

In our political discourse there is much discussion of red tape, frequently phrased in terms of ‘challenges’ and ‘bonfires’ to reduce and cut it. Supporters of free markets often have a general feeling that there is too much regulation or that it is too intrusive, badly formulated and ineffective. However, proponents of these positions are ... Continue reading
Research

The example of financial services

There are frequent calls for financial markets to be more actively regulated. In nearly all cases it is assumed that regulation must come from state agencies such as the Financial Conduct Authority or the Prudential Regulation Authority. This analysis arises from neo-classical, market-failure approaches to economics which suggest that the market does not maximise welfare ... Continue reading
Research

IEA Financial Services unit releases report outlining the unintended consequences of MifID II regulations

MiFID II, together with MiFIR (Regulation (EU) No 600/2014), was intended to create a more transparent, competitive and integrated financial market in the EU by reducing trading outside regulated markets, increasing protection for investors and consumers, and improving financial stability. The Directive harmonises the EU regulatory regime with respect to organisational requirements for investment firms, ... Continue reading
Research

The benefits of unprotected capitalism and unruly shareholders

Summary Free-market capitalism requires creative destruction. It is important that poorly performing companies are allowed to go out of business or allowed to be taken over, and it is equally important that new companies are able to replace them. If company management is not maximising shareholder value, then the shareholders should be entitled to act. ... Continue reading
Research

Gender pay gap reporting produces another round of misleading statistics

Summary Now into the second year of mandated gender pay gap reporting for large organisations, it has become increasingly clear that the influx of data - ranging from negative gaps, to gaps exceeding 50% - fails to provide any meaningful insight into equal or fair pay for men and women in the workplace. The requirement ... Continue reading
Research

IEA's International Trade and Competition Unit releases briefing on the Backstop

Summary:  The provisions of the Protocol deliver what has become known as the ‘backstop’ for the Irish border. They come into effect if no other agreement that addresses the issues in connection with the Irish border has been reached by the end of the Transition Period on 31 December 2020, or any extension of that ... Continue reading
Research

UK must embrace innovation to make farming economically & environmentally viable, says new IEA report

Innovation in farming has led to higher crop yields which, in turn, have allowed more land to be spared from farming than would otherwise have been the case. Raising yields further to feed a growing global population will require new technologies to be embraced, including genetic modification, gene silencing and editing, as well as developments ... Continue reading

IEA sets out framework for independent UK Fisheries policy

IEA sets out framework for independent UK Fisheries policy The primary objective of a UK fisheries policy should be to balance the goals of ensuring a viable future for commercial fishing in UK waters, ensuring sustainability, and enabling UK consumers to have access to cheaper fish and fish products. This should be based on a ... Continue reading
Research

Estimating the size and potential of the UK Cannabis Market

Summary:  This report aims to provide estimates of: (a) the size and value of the UK’s illicit cannabis market in 2016/17 (b) the size and value of the market if cannabis were legalised and regulated (c) the annual tax revenue that a legal cannabis market would yield Our best estimate suggests that 255 tonnes of ... Continue reading
Research

Brexit provides opportunity to slimline costly regulation of insurance market

Summary:  The extent of regulation of insurance companies has grown significantly in recent decades. The ‘freedom with publicity’ regime which defined the regulatory approach from 1870 to 1970 appeared to work and ran with the grain of the market. Arguments that are given today for prudential regulation of insurers tend to be spurious or not ... Continue reading