Study Abroad Programme

Transcription

1 MODULE SPECIFICATION UNDERGRADUATE PROGRAMMES KEY FACTS Module name Module code School Department or equivalent Financial Services Regulation FR3207 Cass Business School UG Programme UK credits 15 ECTS 7.5 Level 6 Delivery location (partnership programmes only) MODULE SUMMARY Module outline and aims Regulation of business and professional practices has a long history, and has primarily been used to protect the interests of both providers and users of services or products. In much the same way that laws and government pronouncements differ in their design and implementation across the world, regulation is not a homogeneous system but rather a nexus of codes, laws and instructions designed to address specific and general issues. Some regulation is clearly necessary (for example, professional care and protection of the interests of savers and investors) while other regulation is seen as more arcane and the rationale to be less obvious (for example, takeovers, market behaviour, and banking capital requirements). It is clear that regulation on its own is not a panacea for curing unacceptable risks neither is it an unnecessary bureaucratic burden designed to stifle competitiveness and innovation. What can be said to be true is that it is an inevitable part of modern business, especially in financial services sectors and it is therefore a subject that should be recognised as such by those who work within it. This module is designed to provide you with an understanding of the risks that are inherent in modern business systems and the legal and regulatory responses to these risks, specifically the

2 impact and function of international financial services regulation, including associated issues such as ethics and culture. This module will address the theoretical and practical justification for the regulatory environments, frameworks, models and techniques that are applied to financial services and markets. This will include the implications for management, and to compliance, legal and risk management systems. While established regulatory codes will be used to provide a framework for development of a broader picture this module will as much as possible also include specific examples of regulation from a global perspective. Finally, as well as the letter of financial regulation the module will address the role that ethics and compliance play in ensuring responsible and sustainable business conduct. Content outline - History and background of market regulation - Financial services regulation in the developed world - Regulation and developing countries - Regional regulation (EU) - Industry specific regulation (the BIS and Basel III) - Ethics and regulation. - Regulation and compliance in Islamic financial services - When regulation goes wrong

3 - Specific issues: money laundering, banking failures, international guidance - The future of regulation WHAT WILL I BE EXPECTED TO ACHIEVE? On successful completion of this module, you will be expected to be able to: Knowledge and understanding: - Understand the issues relating to financial services regulation in a broad range of geographical, political and social contexts - Understand the responsibilities of management at all levels to ensure compliance with regulation - Understand the regulatory structures within which financial services are provided in the financial centres of the developed and developing worlds - Understand the important role that ethics and compliance play in responsible business conduct - Have gained sufficient knowledge to be able to make informed decisions Skills: - Know where to find relevant information and material for research - Identify potential risks to regulatory systems and to understand how best to mitigate them

4 - Develop confidence and skills in communicating effectively and efficiently with relevant professionals within and outside of their organisations - Seek appropriate advice from specialists and professionals within and outside of their organisations - Use information derived from a range of public and organisational sources to prepare written and oral reports to senior colleagues - Present findings to colleagues in both verbal and written form - Contribute to the formation and development of strategies designed to minimise potential risks Values and attitudes: - Be fully aware of the role of ethics and compliance in business - Be aware of the importance of non-western regulatory systems - Appreciate the importance of ethics and compliance in the identification, control and mitigation of legal and regulatory risk - Develop confidence in consulting relevant people in order to make informed decisions HOW WILL I LEARN?

5 A variety of learning and teaching methods will be used in this course including: lectures; class discussion; group work; coursework; researching and reading relevant materials. Lectures are used to introduce context, concepts and techniques illustrated with practical and current examples. You will also have the opportunity to participate in class discussions and work through examples and exercises with the support of the lecturer. It is strongly recommended that you attend ALL lectures. Key learning and teaching resources will be put on the module website on Moodle. In the independent study time you are encouraged to read widely and in depth around particular topics in preparation for lectures and tutorials. You may also spend time working through sample exercises and questions. In addition you will be preparing and undertaking your coursework assignments and preparing for your final examination. Teaching pattern: Teaching component Teaching type Contact hours Self-directed study hours Placement hours Total student learning hours Lectures Lecture Totals WHAT TYPES OF ASSESSMENT AND FEEDBACK CAN I EXPECT? Assessments This module is assessed by a written examination weighted at 70% and coursework weighted at 30%. The examination will be in a traditional closed book, with two questions to be answered from four that relate to the whole range of the syllabus. Coursework will be set for groups and will address real-life cases selected by each group subject to approval of the module leader.

6 Assessment pattern: Assessment component Assessment type Weighting % Minimum qualifying mark Pass/Fail? Coursework Written assignment, including essay 30 0 N/A Examination 2.25 hours Written Exam 70 0 N/A Assessment criteria Assessment criteria are descriptions of the skills, knowledge or attributes you need to demonstrate in order to complete an assessment successfully and Grade-Related Criteria are descriptions of the skills, knowledge or attributes you need to demonstrate to achieve a certain grade or mark in an assessment. Assessment Criteria and Grade-Related Criteria for module assessments will be made available to you prior to an assessment taking place. More information will be available in the UG Assessment Handbook and from the module leader. Feedback on assessment Following an assessment, you will be given your marks and feedback in line with the University s Assessment Regulations and Policy. More information on the timing and type of feedback that will be provided for each assessment will be available from the module leader. Assessment Regulations The Pass mark for the module is 40%. Any minimum qualifying marks for specific assessments are listed in the table above. The weighting of the different components can also be found above. The Programme Specification contains information on what happens if you fail an assessment component or the module.

7 INDICATIVE READING LIST The basic study material for this course will be the handouts and additional documents obtained from website links distributed in the lectures. You are advised to thoroughly study these materials and understand the contents. You are also encouraged to read the financial papers in order to keep up with regulatory changes and current issues. The following, books, periodicals and websites will also be useful for self-directed study and further research (but there is no need to purchase any of them): Nakajima, C. (1999) Conflicts of Interest and Duty - A Comparative Analysis in Anglo-Japanese Law (Kluwer Law International). Nakajima, C. & Rider, B. (eds.) (1999) Anti-Money Laundering Guide (Sweet & Maxwell). Clarke F., Dean G. and Oliver K., (2nd Ed), Corporate Collapse, Accounting, Regulatory and Ethical Failure (Cambridge University Press). Eatwell, J. and Taylor, L. (2000), Global Finance At Risk The Case for International Regulation (Polity Press). Grote, R. and Marauhn, T. (Eds), (2004), The Regulation of International Financial Markets Perspectives for Reform (Cambridge University Press). Gup, E. B (2007), Corporate Governance in Banking (Edward Elgar). Hazen, T. L. (3rd Edn) Principles of Securities Regulation (Thomson West).

8 Joerges, C. and Dehousse, R., (2002), Good Governance in Europe s Integrated Market (Oxford University Press). Lomborg B. (Ed) (2004), Global Crises, Global Solutions (Cambridge University Press). Lomnicka E. and Powell, J. (loose-leaf 3 annual updates) Encyclopaedia of Financial Services Law (Sweet & Maxwell). Lybeck, Johan A. The future of financial regulation: who should pay for the failure of American and European banks? Nelson, P. (2008), Capital Markets Law and Compliance. The Implications of MiFID (Law Practitioner Series). Pieth, M., Low L. and Cullen P., (2007), The OECD Convention on Bribery (CUP). Rezaee, Zabihollah Financial services firms : governance, regulations, valuations, mergers, and acquisitions Rider, B. and Ashe, T.M. (1993), Insider Crime (Jordans). Scott, H. and Wellons, P. (2002), International Securities Regulation (Foundation Press). Steil, B. (Ed.) (1994), International Financial Market Regulation (Wiley). Wymeersch, Eddy; Klaus J. Hopt, and Guido Ferrarini Financial Regulation and Supervision: A post-crisis analysis, Oxford 2012 Useful journals:

9 The Company Lawyer, London: Sweet & Maxwell (monthly). Journal of Financial Crime, London, Henry Stewart Publications (quarterly). Journal of Money Laundering Control, Henry Stewart Publications (quarterly). Journal of Regulation and Compliance, Henry Stewart Publications (quarterly). Useful websites: UK H.M. Treasury: http// Financial Conduct Authority, Europe European Commission: European Securities and Markets Authority (ESMA formerly CESR): United States United States Securities Commission: United States Federal Reserve System:

10 China (PRC) China Banking Regulatory Commission: China Securities Regulatory Commission: International OECD: regulation&cx= :xzeadub0b0a&cof=forid:11&ie=utf-8