Concept
-
This phase is only reached once a regulation has been accepted. Once a regulation is passed, and the appropriate stakeholders have been made aware of it, the overseeing body needs to implement the regulation in the relevant markets. In a case where there is no overseeing body – for instance, during the creation of the SEC – then this body will first need to be set up in accordance with the relevant legislation.
The overseeing body will establish and monitor the standards for the following activities: Reporting requirements – Which information must be reported? Frequency of reporting – When are parties required to report (e.g. monthly, quarterly, annually, etc.)? Format of reporting – Which type of reporting is required (for example, IFRS is used for financial reporting)? Punitive measures for non-compliance – Which punishment is enforced for which issue of non-compliance?
Following the implementation of regulation, the effects of the regulatory changes should then be monitored to assess and identify any changes of behavior within the market. Any abstract and unacceptable behavior that arises from the implementation of the regulation may give cause to amend or even repeal the regulation.