Financial economic analysis is playing an increasingly prominent role guiding high stakes decisions in utility regulation, and securities market litigation involving allegations of misleading disclosure, insider trading or market manipulation.
In utility regulation, regulators’ decisions on the allowed rate of return to be applied in the resetting of price controls drive both major investment decisions and price outcomes for customers. Striking the right balance involves complex analysis and difficult trade-offs.
For more than a decade, our people have been at the leading edge in applying increasingly sophisticated methods and analysis to determine the appropriate rate of return for regulated infrastructure service providers.
Compliance with the many obligations underpinning the effective operation of securities markets – whether applying to listed entities or those participating as buyers and sellers of financial assets – are increasingly the subject of regulatory enforcement or class action proceedings.
Our experts are foremost in the region in the application of economics to critical questions arising in securities class actions, insider trading and market manipulation proceedings. Their evidence has been accepted in one of the few wrongful disclosure matters to be tried to final judgment in the Federal Court of Australia.