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Regulatory enforcement against organizational insiders: Interactions in the pursuit of individual accountability

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  • Aleksandra Jordanoska

Abstract

The UK Financial Conduct Authority has developed and implemented policies targeting individuals for regulatory non‐compliance in the post‐2008 crisis period. This article develops a tripartite framework that differentiates between individual–firm, regulator–individual, and regulator–firm interactions to capture the complexity of these enforcement proceedings. Drawing on interviews with stakeholders, administrative decisionmaking observations, and documentary analysis, it outlines the process of individualizing responsibility for non‐compliance and finds that this approach poses evidential and investigative challenges for the regulator as a result of individual and corporate responses. The evidence shows that individuals are more likely than firms to engage in an adversarial response to an investigation rather than to settle. At the same time, through an inverse process of “corporatization” of the enforcement proceedings, firms may employ resources and strategies aimed at obscuring individual responsibility or binding together more closely the corporate and the individual case. The article concludes that the prospects of a successful outcome in investigating individuals depend not only on regulators' activities but also on corporate responses and on which managers are considered assets to the firm and which may be thrown to the wolves.

Suggested Citation

  • Aleksandra Jordanoska, 2021. "Regulatory enforcement against organizational insiders: Interactions in the pursuit of individual accountability," Regulation & Governance, John Wiley & Sons, vol. 15(2), pages 298-316, April.
  • Handle: RePEc:wly:reggov:v:15:y:2021:i:2:p:298-316
    DOI: 10.1111/rego.12280
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    References listed on IDEAS

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    1. PeterJ May & Søren Winter, 1999. "Regulatory enforcement and compliance: Examining Danish agro-environmental policy," Journal of Policy Analysis and Management, John Wiley & Sons, Ltd., vol. 18(4), pages 625-651.
    2. Parker,Christine, 2002. "The Open Corporation," Cambridge Books, Cambridge University Press, number 9780521818902, January.
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    Cited by:

    1. Nicholas Lord, 2023. "Prosecution Deferred, Prosecution Exempt: On the Interests of (In)Justice in the Non-Trial Resolution of Transnational Corporate Bribery," The British Journal of Criminology, Centre for Crime and Justice Studies, vol. 63(4), pages 848-866.

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