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

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

The Case for a Strong Regulatory Compliance Defense

Federal administrative agencies have established safety standards or licensing procedures for airplanes, motor vehicles, pesticides, drugs, medical devices, and a variety of other products. At the same time, product sellers are subject to tort liability even though their products comply with applicable federal safety standards. Product sellers maintain that compliance with federal safety standards ought to protect them from liability under state tort law and have relied upon several legal principles to support this claim. The first, and most successful, theory is federal preemption. Under this concept, Congress may expressly or impliedly assert the primacy of federal law under the Supremacy Clause of the U.S. Constitution, thereby displacing competing (or even complementary) state regulation. So far, product manufacturers have successfully invoked the doctrine of preemption to defeat damage claims by injured consumers in connection with cigarette labeling, pesticide labeling, motor vehicle design, and medical device labeling and design. The regulatory compliance defense is another concept that can limit tort liability. In its strong version, the regulatory compliance defense provides that a product is not defective if it meets applicable regulatory standards or requirements. However, very few jurisdictions recognize regulatory compliance as a complete defense to tort liability. Instead, most courts allow juries to take compliance with regulatory standards into account, but steadfastly refuse to treat federal safety standards as anything more than minimum standards. Part I of this Article provides a brief overview of significant federal product safety legislation. Part II sets forth the argument that administrative agencies can regulate product safety more cheaply and effectively than tort law. The concept of federal preemption is discussed and critiqued in part III. Part IV focuses on the conventional treatment of regulatory compliance in products liability law and proposes a strong regulatory compliance defense that will foreclose most damage claims against product manufacturers who comply with federal safety standards. Finally, part V analyzes the effect such a proposal would have on product safety and the compensation of injured consumers. The Article concludes that the administrative cost savings that a strong regulatory compliance defense would achieve should more than offset any negative effects that the defense might have on product safety and victim compensation

Theory of Regulatory Compliance for Requirements Engineering

Regulatory compliance is increasingly being addressed in the practice of requirements engineering as a main stream concern. This paper points out a gap in the theoretical foundations of regulatory compliance, and presents a theory that states (i) what it means for requirements to be compliant, (ii) the compliance problem, i.e., the problem that the engineer should resolve in order to verify whether requirements are compliant, and (iii) testable hypotheses (predictions) about how compliance of requirements is verified. The theory is instantiated by presenting a requirements engineering framework that implements its principles, and is exemplified on a real-world case study.Comment: 16 page

Querying a regulatory model for compliant building design audit

The ingredients for an effective automated audit of a building design include a BIM model containing the design information, an electronic regulatory knowledge model, and a practical method of processing these computerised representations. There have been numerous approaches to computer-aided compliance audit in the AEC/FM domain over the last four decades, but none has yet evolved into a practical solution. One reason is that they have all been isolated attempts that lack any form of standardisation. The current research project therefore focuses on using an open standard regulatory knowledge and BIM representations in conjunction with open standard executable compliant design workflows to automate the compliance audit process. This paper provides an overview of different approaches to access information from a regulatory model representation. The paper then describes the use of a purpose-built high-level domain specific query language to extract regulatory information as part of the effort to automate manual design procedures for compliance audit

The "Phantom Costs" of Florida's Citrus Industry

Regulatory compliance, the "phantom costs of production," is an increasingly "fact-of-life" for U.S. agriculture. A survey was developed and implemented to enumerate regulatory compliance costs for Florida's 748,500 acres citrus industry. Complying with 61 production related regulations, 643,757 hours were expended at a total annual cost of over $24.3 million.Crop Production/Industries,

Towards a Semantic-based Approach for Modeling Regulatory Documents in Building Industry

Regulations in the Building Industry are becoming increasingly complex and involve more than one technical area. They cover products, components and project implementation. They also play an important role to ensure the quality of a building, and to minimize its environmental impact. In this paper, we are particularly interested in the modeling of the regulatory constraints derived from the Technical Guides issued by CSTB and used to validate Technical Assessments. We first describe our approach for modeling regulatory constraints in the SBVR language, and formalizing them in the SPARQL language. Second, we describe how we model the processes of compliance checking described in the CSTB Technical Guides. Third, we show how we implement these processes to assist industrials in drafting Technical Documents in order to acquire a Technical Assessment; a compliance report is automatically generated to explain the compliance or noncompliance of this Technical Documents

Chart Accompanying: An Assessment of Cross-National Regulatory Burden Comparisons

The Article compares several rankings systems for national regulatory compliance costs. It finds the ranking systems are limited to differentiating between those countries least burdened by regulation from those most burdened by regulation. It concludes the rankings could be an important tool for deciding which countries would be the most promising for regulatory burden reduction initiatives

An Assessment of Cross-National Regulatory Burden Comparisons

The Article compares several rankings systems for national regulatory compliance costs. It finds the ranking systems are limited to differentiating between those countries least burdened by regulation from those most burdened by regulation. It concludes the rankings could be an important tool for deciding which countries would be the most promising for regulatory burden reduction initiatives

An Assessment of Cross-National Regulatory Burden Comparisons

The Article compares several rankings systems for national regulatory compliance costs. It finds the ranking systems are limited to differentiating between those countries least burdened by regulation from those most burdened by regulation. It concludes the rankings could be an important tool for deciding which countries would be the most promising for regulatory burden reduction initiatives

Design Challenges for GDPR RegTech

The Accountability Principle of the GDPR requires that an organisation can demonstrate compliance with the regulations. A survey of GDPR compliance software solutions shows significant gaps in their ability to demonstrate compliance. In contrast, RegTech has recently brought great success to financial compliance, resulting in reduced risk, cost saving and enhanced financial regulatory compliance. It is shown that many GDPR solutions lack interoperability features such as standard APIs, meta-data or reports and they are not supported by published methodologies or evidence to support their validity or even utility. A proof of concept prototype was explored using a regulator based self-assessment checklist to establish if RegTech best practice could improve the demonstration of GDPR compliance. The application of a RegTech approach provides opportunities for demonstrable and validated GDPR compliance, notwithstanding the risk reductions and cost savings that RegTech can deliver. This paper demonstrates a RegTech approach to GDPR compliance can facilitate an organisation meeting its accountability obligations