About | HeinOnline Law Journal Library | HeinOnline Law Journal Library | HeinOnline
LOG IN
LOG IN

37 Nw. J. Int'l L. & Bus. 371 (2016-2017)
FinTech, RegTech, and the Reconceptualization of Financial Regulation

handle is hein.journals/nwjilb37 and id is 383 raw text is: Copyright 2017 by Douglas Arner, Janos Barberis, and Ross P. Buckley Printed in the U.S.A. Northwestern Journal of International Law & Business Vol. 37, No. 3 FinTech, RegTech, and the Reconceptualization of Financial Regulation Douglas W. Arner*, Janos Barberis** & Ross P. Buckley*** Abstract: Regulatory change and technological developments following the 2008 Global Financial Crisis are changing the nature offinancial markets, services, and institutions. At the juncture of these phenomena lies regulatory technology or RegTech -the use of technology, particularly information technology, in the context of regulatory monitoring, reporting, and compliance. 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 inadequate. RegTech developments are leading towards a paradigm shift necessitating the reconceptualization offinancial regulation. RegTech to date has focused on the digitization of manual reporting and compliance processes. This offers tremendous cost savings to the financial services industry and regulators. However, the potential of RegTech is far greater - it has the potential to enable a nearly real-time and proportionate regulatory regime that identifies and addresses risk while facilitating more efficient regulatory compliance. We argue that the transformative nature of technology will only be captured by a new approach at the nexus of data, digital identity, and regulation. This paper seeks to expose the inadequacy of digitizing analogue processes in a digital financial world, sets the foundation for a practical understanding of RegTech, and proposes sequenced reforms that could benefit regulators, industry, and entrepreneurs in the financial sector and other industries. * Kerry Holdings Professor in Law, University of Hong Kong. ** Senior Research Fellow, Asian Institute of International Financial Law, Faculty of Law, University of Hong Kong, and Founder, FinTech HK. *** C[FR King & Wood Mallesons Chair of International Financial Law, Scientia Professor, and Member, Centre for Law, Markets & Regulation, UNSW Australia. The authors gratefully acknowledge the financial support of the Hong Kong Research Grants Council Theme-based Research Scheme (Enhancing Hong Kong's Future as a Leading International Financial Centre) and the Australian Research Council Linkage Grant Scheme (Regulating a Revolution: A New Regulatory Model for Digital Finance); the substantial input of Dr. Cheng-Yun Tsang, and the research assistance of Jessica Chapman. 371

What Is HeinOnline?

HeinOnline is a subscription-based resource containing thousands of academic and legal journals from inception; complete coverage of government documents such as U.S. Statutes at Large, U.S. Code, Federal Register, Code of Federal Regulations, U.S. Reports, and much more. Documents are image-based, fully searchable PDFs with the authority of print combined with the accessibility of a user-friendly and powerful database. For more information, request a quote or trial for your organization below.



Short-term subscription options include 24 hours, 48 hours, or 1 week to HeinOnline.

Purchase Access

Contact us for annual subscription options:

Contact Us

Already a HeinOnline Subscriber?

Log In

profiles profiles most