Working Group 2011 on Responsible Innovation in Finance
Discussion Paper (November 2011): "Towards a practical approach to responsible innovation in finance: New Product Committees revisited"
Abstract: This paper examines the potentials of New Product Committees (i.e. New Product Approval) inside investment banks as organizational sites for the development of responsible innovation in finance. The manifold interpretations of the notion of responsibility are first briefly discussed. The functioning of New Product Committees in the financial services industry is then presented in detail. The features of New Product Committees are finally appraised in the light of the different interpretations of the notion of responsibility. The paper concludes with a series of policy implications and recommendations. This paper serves as background material for the Working Group's work in progress and should be followed by a more precise policy proposal.
An improved version of the paper appeared in the Journal of Financial Regulation and Compliance (2012, vol. 20, iss. 2, pp. 147-168). See also a short executive summary in LSE's Risk & Regulation Magazine (Summer 2012, iss. 23, pp. 18-19).