1 - Introduction

Summary

It is not the purpose of this Treatise to make its totality understandable to … those who have not engaged in any study other than the science of the Law – I mean the legalistic study of the Law. For the purpose of this Treatise … is the science of Law in its true sense … But … nor should he hasten to refute me, for that which he understands me to say might be contrary to my intention. He thus would harm me in return for my having wanted to benefit him and would repay evil for good.

That is the sentiment. Now, the insight. Law is applied sociology, the rules constructed by people in order that they might regulate their behaviour for the benefit of all within their particular social grouping. The sociological fact of acceptance, by-and-large, within that grouping is, notwithstanding any lack of definition of a ‘formal’ process, sufficient for those rules to be called ‘law’ and, to that extent, the psychological reason for that acceptance (and the answer to the question: Why is law binding?) does not have to be answered. Regulation, including the regulation of the Capital Markets, is law. It has legal consequences in that it affects the rights and obligations of the citizen (the regulated) and the Government (the regulator), which rights and obligations are enforceable through ‘legal’ process, notwithstanding any attempt by the regulator to circumvent or, at least, be creative with that process (2.5.5, 2.5.8). It follows that you can understand the content of a particular regulation or set of regulations only if you understand five extraneous facts.