Regulatory Arbitrage

"Legal strategy or gamesmanship known as “regulatory arbitrage” has been defined in various ways, such as “transactions designed specifically to reduce costs or capture profit opportunities created by different regulations or laws.” Regulatory arbitrage “occurs when parties take advantage of a gap between the economics of a deal and its regulatory treatment.” With examples ranging from financial maneuvers such as tax shelters and shadow banking, to strategic choices such as offshoring business or assets, the discourse on regulatory arbitrage often revolves around how to solve it".

Source: https://scholarship.law.upenn.edu/cgi/viewcontent.cgi?article=3570&context=faculty_scholarship