Drawing the line in the sand: trust, integrity and regulatory misdemeanour

Harvey, Jackie and Bosworth-Davies, Rowan (2016) Drawing the line in the sand: trust, integrity and regulatory misdemeanour. Security Journal, 29 (3). pp. 367-384. ISSN 0955-1662

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Official URL: http://dx.doi.org/10.1057/sj.2013.33

Abstract

Trust and integrity are two words that underpin the operations of the London financial markets. This paper explores trust in relation to the core values displayed amongst market participants, arguing the traditional regulatory model that posits an inverse relationship between ethical behaviour and regulation fails to adequately describe the activity that we observe. Changes in regulatory structure and the incentivisation of risk-taking challenged established cultural norms; enabling actions that within other contexts would have been seen as criminal, to be regarded as misdemeanours and dealt with accordingly. By focussing on regulation and the changing attitudes of market participants, we adopt a cross-disciplinary approach to explain our observations, describing instead a captured model of regulation, focused on maintaining public confidence. We illustrate our argument by reviewing regulatory intervention by the FSA for 2009 and conclude with consideration of the longer term implications for the ethical governance of the financial sector.

Item Type: Article
Additional Information: “This is a pre-print of an article published in Security Journal. The definitive publisher-authenticated version Security Journal , (30 September 2013) | doi:10.1057/sj.2013.33 is available online at: http://dx.doi.org/10.1057/sj.2013.33
Subjects: N100 Business studies
N300 Finance
Department: Faculties > Business and Law > Newcastle Business School > Accounting and Finance
Depositing User: Jackie Harvey
Date Deposited: 17 Sep 2013 12:33
Last Modified: 03 Oct 2016 16:18
URI: http://nrl.northumbria.ac.uk/id/eprint/13513

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