Do it once, get it right: Wholesale regulatory intervention in price and cost disclosure

Publisher:
Taylor and Francis Group
Publication Type:
Journal Article
Citation:
Law and Financial Markets Review, 2017, 11, (2-3), pp. 110-116
Issue Date:
2017-07-03
Full metadata record
Price regulation of the utility sector occurs mainly at the wholesale level. In contrast, in Australian superannuation, regulation requires limited disclosure of fees and costs at the retail level. This paper reviews the regulatory theory that has led utilities regulators to focus on wholesale-level disclosure. It then applies the insights used in these sectors to analyse mechanisms for price and cost disclosure which could be applied to Australian superannuation. The paper argues that intervention done once, but done right, may reduce the need for mandatory retail-level disclosure and would reduce some aspects of regulatory information asymmetry.
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