FinTech, RegTech and the Reconceptualization of Financial Regulation
The regulatory changes and technological developments following the 2008 Global Financial Crisis are fundamentally changing the nature of financial markets, services and institutions. At the juncture of these two phenomena lies regulatory technology or ‘RegTech’ – the use of technology, particularly information technology, in the context of regulatory monitoring, reporting and compliance. For policymakers and regulators, the challenge of regulating rapidly transforming financial systems requires increasing the use of and reliance on RegTech. Whilst the principal regulatory objectives (e.g. financial stability, prudential safety and soundness, consumer protection and market integrity, and market competition and development) remain, their means of application are increasingly becoming inadequate. RegTech developments are leading towards a paradigm shift necessitating the reconceptualization of financial regulation.
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