Howard Wetston, who is close to the end of his tenure as chair of the Ontario Securities Commission, says regulators should be paying more attention to human behaviour.

While regulators are not the “culture police” for market players, they should look at behaviour science as seriously as they study economic factors affecting markets, Wetston said during a panel discussion with global regulators Thursday at a conference in Toronto.

“Incentives must be understood,” Wetston said, adding that if box-checking compliance rules were complemented or replaced by addressing specific incentives and behaviours that have been found to lead to malfeasance, regulators could “rely less on the blunt instrument of enforcement [after] the harm has been done.”

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Financial Post – Barbara Shecter – October 8, 2015.

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