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Journal of Information Technology

, Volume 33, Issue 4, pp 304–325 | Cite as

Dialectic tensions in the financial markets: a longitudinal study of pre- and post-crisis regulatory technology

  • Wendy L. Currie
  • Daniel P. GozmanEmail author
  • Jonathan J. M. Seddon
Research Article

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 a culture 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.

Keywords

regulatory technology compliance systems financial technology financial crisis surveillance ethics accountability fintech regtech 

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Copyright information

© Association for Information Technology Trust 2017

Authors and Affiliations

  • Wendy L. Currie
    • 1
  • Daniel P. Gozman
    • 2
    • 3
    Email author
  • Jonathan J. M. Seddon
    • 1
  1. 1.Audencia-PRES LUNAMAudencia School of ManagementNantes Cedex 3France
  2. 2.University of SydneySydneyAustralia
  3. 3.Henley Business SchoolReadingUK

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