This chapter debates the role of tort law as a form of regulation or as a complement to regulation by examining the role that it plays in setting standards in the financial sector - specifically in the sale of financial products. The chapter finds that tort law operates in many ways that are similar to modern, decentred forms of regulation. At minimum, tort law sets baseline standards of conduct which is significant because most actors in this field are organisations, such as banks and other financial institutions. These organisations have advanced capacities to control activities undertaken on their behalf, which make them amenable to deterrence incentives. However, the extent to which tort law plays a standard setting role varies according to the extent to which statute law ‘covers the field’ and regulators are well-funded. The chapter makes several suggestions for the development of tort rules in this and related areas of law.
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