How Should the Powers of Regulatory Authorities be Established in Terms of Law

The financial authority, independent of the government and with quasi executive, legislative and judicial power, is like a monster in the French political system, but it could not be another way : the market regulator does not depend on the government because the latter, means of Treasury, is also an actor on the market. The principle of impartiality must prevail, but we need to find a new type of legitimacy to root the Authority’s power. It could come from the market itself. The foundation would be the contract between market and Authority. But the Authority must be able to overturn the will of the place, indeed to serve other interests. We can propose a legitimacy by rhetorical logic : the financial Authority may exercise its power legitimately because it is the arena which receives the arguments of different interests, adjudicates them, and would take decisions based on proof of objective and public reasonings. This third objective body would create Law from within the market. The failure to establish this would destroy the Authority’s legitimacy. JEL Classifications : G18, G20