Calls for a more sophisticated financial regulatory framework, capable of effectively monitoring and providing stability of the (global) financial system, as well as shielding from financial crisis, have become increasingly urgent. Indeed it has been recognized that a purely national approach to financial
regulation is incapable of meeting the transnational challenges
resulting from denationalization. Politicians and law-makers are thus
faced with the daunting task of redesigning financial regulatory agencies
to meet the challenges caused by a global market place. The European
Union (EU) may serve as a good example for such developments, as the
lifting of the restrictions on cross-border capital movements and
investments in the context of the internal market has resulted in a
general trend towards regulatory consolidation in the Member States and transnational initiatives on the European level.
