New Accountability in Financial Services: Changing Individual Behaviour and Culture

This book examines individual accountability regimes in the financial services industry, focusing on whether they can achieve behavioral change. It argues for a "trajectory towards professionalization" of banking as a means of influencing industry-wide norms.

Format: Paperback / softback
Length: 222 pages
Publication date: 19 December 2022
Publisher: Springer Nature Switzerland AG

This book is a comprehensive and critical analysis of recently introduced individual accountability regimes in the financial services industry across the UK (SMCR), Australia (BEAR and the forthcoming FAR), and Ireland (SEAR). It provides a framework for examining whether these regimes will effectively induce behavioral change within the industry. While sanctioning individuals to deter future misconduct is a crucial component of any successful regulatory strategy, the book emphasizes the importance of ensuring that individuals in the financial services industry internalize the norms of behavior expected under these regimes.

Drawing from criminological theory, regulatory theory, and behavioral science, the analysis in this book sheds light on the factors that contribute to the development of ethical behavior in the financial services sector. It argues that a "trajectory towards professionalization" of financial services, particularly banking, is essential in shaping industry-wide norms of behavior, which have a profound impact on firms and individuals' actions.

The book explores the various mechanisms employed by these accountability regimes, including fines, penalties, and reputational damage, to incentivize and enforce ethical behavior. It also examines the challenges and limitations of these regimes, such as the potential for regulatory capture, the impact on individual livelihoods, and the need for ongoing monitoring and enforcement.

Furthermore, the book discusses the role of education and training in fostering ethical behavior and promoting a culture of accountability within the financial services industry. It advocates for comprehensive and ongoing professional development programs that equip individuals with the skills and knowledge necessary to navigate the complex ethical dilemmas they may encounter in their work.

In conclusion, this book offers a valuable contribution to the ongoing debate about individual accountability regimes in the financial services industry. By providing a comprehensive analysis of these regimes and their potential impact on behavioral change, it provides policymakers, industry professionals, and scholars with insights into the best practices for promoting ethical behavior and ensuring the stability and resilience of the financial system.

Weight: 367g
Dimension: 235 x 155 (mm)
ISBN-13: 9783030887179
Edition number: 1st ed. 2022