The regulation of RegTech and SupTech in finance: ensuring consistency in principle and in practice

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dc.contributor.authorMcCarthy, Jonathan
dc.date.accessioned2022-07-28T12:56:07Z
dc.date.available2022-07-28T12:56:07Z
dc.date.issued2022-07-08
dc.date.updated2022-07-28T12:49:56Z
dc.description.abstractPurpose: The paper's aim is to consider how best to formulate sturdy regulatory frameworks for RegTech and SupTech. The paper appraises how key features of EU and UK regulatory and policy initiatives can contribute to a functional framework for RegTech and SupTech. Design/methodology/approach: The paper refers to the most comprehensive empirical findings within the EU and the UK on RegTech and SupTech, including reports released by the European Banking Authority and the Bank of England. As data is only gradually becoming available about the true rate of adoption of RegTech and SupTech, the paper identifies salient areas that warrant analysis from emerging findings. In light of the relatively restricted sources of empirical data, the article's methodological approach is directed towards the most wide-ranging and detailed sources that are currently available at EU and UK levels. Findings: The paper reveals distinct variations in how the EU and UK have pursued regulatory approaches towards RegTech and SupTech growth. However, there are many shared features in the respective approaches. The paper argues that a regulatory framework should ideally be imbued with overarching strategies and policy objectives, as well as with practical measures through innovation facilitators, such as sandboxes. Yet, legislative (top-down) intervention will be the significant ingredient in guaranteeing legal clarity for RegTech and SupTech. Originality/value: By understanding the nuances in EU and UK approaches, the paper advocates for pragmatic reasoning when formulating a regulatory response. The importance of the article is in its focus on the elements of EU and UK regulatory approaches that are most capable of guaranteeing clarity on standards relating to RegTech and SupTech. The paper makes a vital contribution to existing commentary by determining how a balance can be struck between "top-down" and "bottom-up" types of regulation (i.e. should regulation be entirely concerned with industry-driven standards, such as codes of conduct?).en
dc.description.statusPeer revieweden
dc.description.versionAccepted Versionen
dc.format.mimetypeapplication/pdfen
dc.identifier.citationMcCarthy, J. (2023) ‘The regulation of RegTech and SupTech in finance: ensuring consistency in principle and in practice’, Journal of Financial Regulation and Compliance, 31(2), pp. 186–199. Available at: https://doi.org/10.1108/JFRC-01-2022-0004en
dc.identifier.doi10.1108/JFRC-01-2022-0004en
dc.identifier.endpage199
dc.identifier.issn1358-1988
dc.identifier.journaltitleJournal of Financial Regulation and Complianceen
dc.identifier.startpage186
dc.identifier.urihttps://hdl.handle.net/10468/13422
dc.identifier.volume31
dc.language.isoenen
dc.publisherEmerald Publishing Limiteden
dc.relation.urihttps://doi.org/10.1108/JFRC-01-2022-0004
dc.rights© 2022, Jonathan McCarthy. License: Published by Emerald Publishing Limited. This article is published under the Creative Commons Attribution (CC BY 4.0) licence. Anyone may reproduce, distribute, translate and create derivative works of this article (for both commercial and non-commercial purposes), subject to full attribution to the original publication and authors. The full terms of this licence may be seen at http://creativecommons.org/licences/by/4.0/legalcodeen
dc.rights.urihttp://creativecommons.org/licences/by/4.0/en
dc.subjectBanking regulationen
dc.subjectFinanceen
dc.subjectFinancial lawen
dc.subjectFinancial regulationen
dc.subjectFinancial servicesen
dc.subjectReportingen
dc.titleThe regulation of RegTech and SupTech in finance: ensuring consistency in principle and in practiceen
dc.typeArticle (peer-reviewed)en
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