There is a need in the Asia-Pacific region to further develop securities regulations and increase the power of securities regulators. Regulators have important advantages over the judiciary because they can potentially be more flexible than judges in making decisions about long standing company law. Regulators may be better able to examine changing market conditions and control both shareholders and corporate insiders more effectively. Moreover, regulators, whose career prospects might be linked to their ability to penalize corporate misdemeanors may have more incentive to confront companies than judges. Securities regulators can normally bring both criminal and civil actions against companies and their executives that can be effective in preventing misbehaviour, stopping wrongdoing and compensating shareholders for illegal or negligent transactions.
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