Behaviour and Compliance in Organisations

42 Pages Posted: 9 Mar 2017

See all articles by Zanna Iscenko

Zanna Iscenko

UCL; Financial Conduct Authority

Christopher Pickard

Economic Insight Limited

Laura Smart

Financial Conduct Authority

Zita Vasas

Financial Conduct Authority

Date Written: December 23, 2016

Abstract

To be effective, regulators need to ensure that firms comply with the rules they set. Compliance in practice depends on a range of factors, including incentives, governance, controls, culture and behavioural issues. This paper considers how regulators can complement an incentive-based ‘credible deterrence’ approach with an approach that uses insights from psychology to change the way that firms make compliance decisions. This involves analysis of behavioural biases, morality, culture and social norms, which have tended to be studied in the context of consumer decision making. Their implications for compliance are less well understood. Developing our understanding of these implications is a key motivation for this paper.

Suggested Citation

Iscenko, Zanna and Pickard, Christopher and Smart, Laura and Vasas, Zita, Behaviour and Compliance in Organisations (December 23, 2016). FCA Occasional Paper No. 24. Available at SSRN: https://ssrn.com/abstract=2939687

Zanna Iscenko (Contact Author)

UCL ( email )

Drayton House, 30 Gordon Street
30 Gordon Street
London, WC1H 0AX
United Kingdom

Financial Conduct Authority ( email )

25 The North Colonnade
Canary Wharf
London, E14 5HS
United Kingdom

Christopher Pickard

Economic Insight Limited ( email )

125 Old Broad Street
London, EC2N 1AR
United Kingdom

Laura Smart

Financial Conduct Authority ( email )

25 The North Colonnade
Canary Wharf
London, E14 5HS
United Kingdom

Zita Vasas

Financial Conduct Authority ( email )

25 The North Colonnade
Canary Wharf
London, E14 5HS
United Kingdom

Register to save articles to
your library

Register

Paper statistics

Downloads
65
Abstract Views
306
rank
340,387
PlumX Metrics