scholarly journals A Rational Regulatory Strategy for Governing Financial Innovation

2017 ◽  
Vol 8 (4) ◽  
pp. 743-765 ◽  
Author(s):  
Iris H-Y CHIU
Keyword(s):  
Financial Regulation ◽  
Regulatory Policy ◽  
Financial Innovation ◽  
Current Approach ◽  
Market Failures ◽  
Regulatory Oversight ◽  
Financial Innovations ◽  
Regulatory Frameworks ◽  
Regulatory Strategy ◽  
The Uk

AbstractModern financial regulation has predominantly been economically-driven,1 progressing from addressing market failures to making markets more competitive and work better.2 The UK Financial Conduct Authority is expressly mandated to pursue regulatory objectives that maintain market integrity and protect consumers (addressing market failures) and to promote competition (making markets work better).3 Both the FCA and its sister regulator, the Prudential Regulation Authority (for banks), have recently adopted innovative regulatory initiatives to promote technologically-driven innovation, aimed at making markets work better. These initiatives are also a response to the recent explosion of technologically-led financial innovation outside of the regulatory perimeter.In promoting financial innovation, we argue that the regulators have insufficiently focused on the need to govern financial innovation more generally. Although this concern may seem premature, the regulatory innovations are increasingly extending the perimeter for regulatory oversight of financial innovations. As the regulatory innovations have the potential to develop into more mature regulatory frameworks for governing financial innovation, we argue that regulators should manage the risks of their current approach and develop a regulatory strategy framework for balancing regulatory objectives and developing regulatory policy. We propose a framework anchored in rationality, consistency and accountability in governing financial innovation.

scholarly journals Banks in the face of regulatory changes in the payment services market

2019 ◽  
Vol 52 (3) ◽  
pp. 7-13
Author(s):  
Mariusz Szpringer
Keyword(s):  
Banking Sector ◽  
Regulatory Policy ◽  
Financial Innovation ◽  
Financial Innovations ◽  
Regulatory Changes ◽  
The Future ◽  
The Face ◽  
Potential Impact ◽  
Payment Services

The article is a review of the book by professor Stanisław Kasiewicz entitled PSD2 – krytyczny przystanek na drodze do nowej ery bankowości. The book discusses the potential impact of the amended EU regulations related to the payment services market on the Polish banking sector. The book includes considerations on regulatory policy in the field of financial innovation as well as the desired directions for its improvement. The book also provides analysis of how the development of financial innovations can impact the future of the Polish payments market. Simultaneously, the key areas in the context of adapting banks to the new market reality under PSD2 have been identified by the author.

Economic Patriotism After the Crisis: Explaining Continuity and Change in European Securities Enforcement

2018 ◽  
Author(s):  
Chase Foster
Keyword(s):  
Financial Crisis ◽  
Insider Trading ◽  
Financial Regulation ◽  
Global Financial Crisis ◽  
Financial Supervision ◽  
Financial Centre ◽  
Continuity And Change ◽  
Financial Interests ◽  
Mixed Pattern ◽  
The Uk

Since the global financial crisis, European governments have sought to intensify the supervision of financial markets. Yet, few studies have empirically examined whether regulatory approaches have systematically shifted in the aftermath of the crisis, and how these reforms have been mediated by longstanding national strategies to promote domestic financial interests in the European single market. Examining hundreds of enforcement actions in three key European jurisdictions, I find a mixed pattern of continuity and change in the aftermath of the crisis. In the UK, aggregate monetary penalties and criminal sanctions have skyrocketed since 2009, while in France and Germany, the enforcement pattern suggests continuity, with both countries assessing penalties and prosecuting insider trading at similar rates before and after the crisis. I conclude that financial regulation is still structured by longstanding industrial strategies (Story and Walter, 1997), but where pre-existing regulatory approaches were seen as contributing to the crisis, a broader regulatory overhaul has been pursued. Thus, in the UK, where the financial crisis served as a direct rebuke to the country’s “light touch” regulation, financial supervision was overhauled, and monetary sanctions dramatically increased, to preserve London’s status as an international financial centre. By contrast, in France and Germany, where domestic regulatory systems were implicated by the financial crisis, domestic securities supervision and enforcement was less dramatically altered. While the crisis has led to the further institutionalization of European-level supervisory institutions, these changes have not yet led to convergence in national regulatory approaches.   Full text available at: https://doi.org/10.22215/rera.v12i1.1233

scholarly journals Why Protect Ancient Woodland in the UK? Rethinking the Ecosystem Approach

2020 ◽  
pp. 1-24
Author(s):  
Jona Razzaque ◽  
Claire Lester
Keyword(s):  
High Speed ◽  
Biodiversity Loss ◽  
Ecosystem Approach ◽  
Lessons Learned ◽  
Value Systems ◽  
Ancient Woodland ◽  
Forestry Practices ◽  
Regulatory Frameworks ◽  
Trade Offs ◽  
The Uk

Abstract Sites of ancient woodland in the United Kingdom (UK) are diminishing rapidly and the multifunctional forest management system with its fragmented approach fails effectively to protect such woodland. In the face of reports on the destruction of ancient woodland, the HS2 High-Speed train project in the UK signifies the extent of trade-offs among the key stakeholders. Such large infrastructure projects typically come with high environmental and social costs, including deforestation, habitat fragmentation, biodiversity loss, and social disruption. This article examines the protection of ancient woodland in the UK and assesses the challenges in applying the ecosystem approach, an internationally recognized sustainability strategy, in the context of such protection. A better understanding of the ecosystem approach to manage ancient woodland is critical for promoting sustainable forestry practices in the UK and informs the discussion in this article of the importance of conserving ancient woodland globally. Lessons learned from UK woodland policies and certification schemes include the need to have in place strong regulatory frameworks, introduce clear indicators, and recognize pluralistic value systems alongside economic considerations. The article concludes that the protection of ancient woodland in the UK requires distinct and strong laws that reflect multiple values of this resource, acknowledge the trade-offs among stakeholders, and adopt an inclusive approach to reduce power asymmetries.

Parliamentary Oversight of Independent Regulatory Authorities in India

2018 ◽  
Vol 64 (3) ◽  
pp. 487-501
Author(s):  
Surendra Kumar
Keyword(s):  
Regulatory Policy ◽  
Regulatory Reform ◽  
Business Environment ◽  
Regulatory Environment ◽  
Regulatory Authorities ◽  
The Usa ◽  
Institutional Contexts ◽  
The Government ◽  
The Uk ◽  
Parliamentary Oversight

Independent regulatory authorities have become an important component of the governance landscape in India and elsewhere. Some regulators have achieved useful outcomes in India. However, the creation of independent sectoral regulators in India has not been accompanied by critical reflection on their role, or attention to the political, legal and institutional contexts within which they operate. Lessons can be learnt from mature regulatory policy countries, such as the USA, the UK and Australia, that the regulatory environment needs to be constantly evaluated to make sure it is keeping pace with the changing technology, business environment and consumer needs and demands. Despite the number of bodies in India that are involved or responsible for regulatory reform, there is one function that seems to be missing and that is of a central oversight function. Most countries have an explicit whole of government regulatory policy and an oversight body, sometimes more than one, that is/are responsible for embedding some of the systemic tools across different parts of the government machinery.

scholarly journals Out of sight � out of regulation? Underground space governance in the UK

2021 ◽  
Vol 9s10 ◽  
pp. 43-68
Author(s):  
Kevin Grecksch
Keyword(s):  
Property Rights ◽  
Nuclear Waste ◽  
Energy Demand ◽  
Mineral Resources ◽  
Current Situation ◽  
Underground Space ◽  
Geological Characteristics ◽  
Regulatory Frameworks ◽  
Conflicting Objectives ◽  
The Uk

Underground space has been used by humans for thousands of years: for example, to extract mineral resources or water. Against the background of increasing populations, urbanisation, and energy demand, underground space has come back into focus, promising to ease pressure above the surface. However, geological underground models deliver only frameworks for possible uses and we do not know much about the context between geological characteristics and human uses, demands, and changes of underground space. Moreover, governing underground space can be complicated as it involves conflicting objectives and regulatory frameworks. One key objective, therefore, must be to conceptualise and implement new approaches to underground governance, taking into account its diverse uses and various stakeholders� claims. This article introduces the current situation of underground space governance and regulation in the UK, discussing different themes, such as property rights, regulation, planning, groundwater, fracking, and the future of underground space use exemplified by the storage of nuclear waste.

scholarly journals Financing innovative development of the African economies: the role of digitalization and financial innovations

2020 ◽  
Vol 28 (3) ◽  
pp. 429-439
Author(s):  
Tijani Forgor Alhassan ◽  
Ahou Julie Kouadio ◽  
Dadson Etse Gomado
Keyword(s):  
Financial Development ◽  
Financial Services ◽  
Positive Relationship ◽  
Financial Innovation ◽  
Sub Saharan Africa ◽  
Innovative Development ◽  
Mobile Banking ◽  
Data Set ◽  
Financial Innovations ◽  
Sub Saharan

The article examines the relationship between financial innovation (mobile banking) variables in sub-Saharan Africa. Mobile banking (also known as mobile money) is one of the main financial innovations in the sub-Saharan region, and it is a system through which non-bank residents (residents without bank accounts, etc.) receive financial services. The overall importance of financial innovation in today’s digital and knowledge-based economy, and indeed, innovative development, inspired this study. Using a partial linear regression model, we analysed the International Monetary Fund data set, the World Bank’s national economic data, and mobile banking data from GSMA for the period from 2011 to 2017. A negative correlation was found between these variables and growth, as well as financial development, but a positive relationship was established between financial development and economic development. This positive relationship re-confirms the argument that financial development affects economic growth. It is recommended that policy makers develop and implement the necessary policy tools that can promote this form of financial innovation, and thus link its benefits to the national economy in general.

scholarly journals Biotechnology policy in European countries: An assessment

10.5912/jcb92 ◽  
2004 ◽  
Vol 10 (4) ◽  
Author(s):  
Bernhard Zechendorf
Keyword(s):  
Public Opinion ◽  
Technology Transfer ◽  
Knowledge Base ◽  
European Commission ◽  
Innovation Policy ◽  
Regulatory Policy ◽  
European Countries ◽  
A Priority ◽  
Policy Agendas ◽  
The Uk

For more than 20 years, all major European governments have put biotechnology as a priority on their innovation policy agendas. How did each of the three big countries – France, the UK and Germany – manage their biotechnology policy, and what results have they achieved? A project funded by the European Commission tried to find out by assessing, over the period 1994–2001, the development of the knowledge base, patent activities, technology transfer measures, regulatory policy, industry promotion measure and public opinion. By adding data from other sources, the author presents a dynamic picture of each country's policy and development up to 2003.

A decade of deregulation?

2019 ◽  
pp. 1-26
Author(s):  
Oonagh McDonald
Keyword(s):  
Financial Crisis ◽  
Financial Regulation ◽  
Light Touch ◽  
Systematic Process ◽  
History Of ◽  
The Government ◽  
The Uk

This chapter traces the history of financial regulation in the UK. It challenges the widely held belief that the period from the 1980s witnessed a systematic process of deregulation. In fact, from the 1970s there was a period of increasing regulation up until the mid-2000s, when the government began to encourage a ‘light touch’ approach. The combination of all these factors meant that banks were ill-prepared to meet the financial crisis. In its aftermath, as the banks embarked on the slow path to recovery, making profits was essential. The traders seized any opportunity they could, and it may well be the case that banks were simply relieved that some areas of their business were profitable.

Part I General Aspects, 5 The Disclosure Paradigm: Conventional Understandings and Modern Divergences

2020 ◽  
Author(s):  
Hu Henry T C
Keyword(s):  
United States ◽  
Technological Innovation ◽  
Financial Innovation ◽  
The United States ◽  
Securities And Exchange Commission ◽  
Financial Innovations ◽  
The Core ◽  
Corporate Governance Mechanisms ◽  
Core Mission ◽  
General Aspects

This chapter focuses on the United States' (US) disclosure paradigm. It explains that the disclosure paradigm contemplates a unique regulatory role for the Securities and Exchange Commission (SEC). Here, the fulfilment of its core mission is essential not only to investor protection and market efficiency, but to a wide variety of transparency-dependent corporate governance mechanisms. Financial innovation is contributing to a ‘too complex to depict’ problem that brings into question the sufficiency of the core approach to information that the SEC has used since its creation. Moreover, particular financial innovations pose product-specific challenges to the fulfilment of the SEC's mission. Additionally, changing conceptions of the ends to be achieved by public disclosure, within the SEC disclosure system itself and pursuant to a new disclosure system driven by regulators with far different mindsets, raise new issues. It is now demonstrable that the new modes of information and the alternative data made possible by technological innovation can help address some of the disclosure challenges posed by financial innovation. At the same time, these new modes and alternative data introduce regulatory complexities. The chapter thus concludes that modern divergences are making life interesting for regulators, practitioners, and academics alike.

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