Dialectic tensions in the financial markets: a longitudinal study of pre- and post-crisis regulatory technology. (December 2018)

• Record Type: Journal Article
• Authors: Currie, Wendy; Gozman, Daniel; Seddon, Jonathan
• Is Part Of: Journal of information technology. Volume 33:Number 4(2018:Dec.)
• Page Start: 304
• Page End: 325
• Publication Date: 2018-12
• Subjects: regulatory technology -- compliance systems -- financial technology -- financial crisis -- surveillance -- ethics -- accountability -- fintech -- regtech; Information technology -- Periodicals; Information storage and retrieval systems -- Periodicals; Information resources management -- Periodicals; 658.40380285
• DOI: 10.1057/s41265-017-0047-5
• Languages: English
• ISSNs: 0268-3962

Abstract

Abstract This article presents the findings from a longitudinal research study on regulatory technology in the UK financial services industry. The financial crisis with serious corporate and mutual fund scandals raised the profile of compliance as governmental bodies, institutional and private investors introduced a 'tsunami' of financial regulations. Adopting a multi-level analysis, this study examines how regulatory technology was used by financial firms to meet their compliance obligations, pre- and post-crisis. Empirical data collected over 12 years examine the deployment of an investment management system in eight financial firms. Interviews with public regulatory bodies, financial institutions and technology providers reveal aculture of compliance with increased transparency, surveillance and accountability. Findings show that dialectic tensions arise as the pursuit of transparency, surveillance and accountability in compliance mandates is simultaneously rationalized, facilitated and obscured by regulatory technology. Responding to these challenges, regulatory bodies continue to impose revised compliance mandates on financial firms to force them to adapt their financial technologies in an ever-changing multi-jurisdictional regulatory landscape.