ABSTRACT
This chapter considers the expressive and normative functions of formal and informal sources of governance standards based on the insights of Emile Durkheim on the relevance of systems of normative regulation, and of others who have considered complex systems and networks-based perspectives in the regulation of conduct. Equally, the complexity, scale and speed of global financial markets increase information asymmetries and diminish the capacity of market participants to govern transactions through accurate pricing and efficient contracts. The incidences of acute and chronic fraudulent, malfeasant and unethical conduct in capital markets continue to occur seemingly unabated and notwithstanding the ever-increasing arsenal of laws, regulations and sanctions available to established government regulatory authorities around the world. The enactment of new laws in democratic systems thus necessitates a formal statutory process designed to ensure that democratic principles are respected and that the checks and balances essential to protect the integrity of the rule of law are observed both in substance and in process.
