ICM137-Advanced Topics in Financial Regulation

Module Provider: ICMA Centre
Number of credits: 20 [10 ECTS credits]
Level:7
Terms in which taught: Summer term module
Pre-requisites:
Non-modular pre-requisites:
Co-requisites:
Modules excluded:
Current from: 2019/0

Email: d.govindarajan@icmacentre.ac.uk

Type of module:

Summary module description:

This module is for students studying the MSc in Regulation and Compliance (Degree Apprenticeship) only.

Aims:

This module encourages students to engage with some of the more complex and substantive dilemmas encountered by financial regulators (including strategic issues).

Assessable learning outcomes:

By the end of this module students should be able to

1. Demonstrate a meaningful understanding of the rationale, structure and key features of the regulation affecting the two halves of a financial intermediary’s balance sheet


2. 
   

   micro-prudential regulation

   
   
   
   
   
   • 
     

     grasp the rationales for, and tools used to address regulatory concerns in the two halves of a financial intermediary’s balance sheet, and marry this with a good understanding the structure, important features and shortcomings of key different international prudential regimes as well as any impending key regulation.

     
     
   
   
   • 
     

     demonstrate cognisance of the implications of legal and financial engineering and its impact on balance sheets and intermediary structures as well as on stakeholders with a particular understanding of the impact of financialisation

     
     
   
   
   • 
     

     recognise the importance of model risk and the allied challenges for regulators

     
     
   
   
   • macroprudential regulation
     
     
     
     • be acutely aware of the interaction with legal and financial engineering
     
     
     • demonstrate an understanding of the rationales for the evolution of macro-prudential regulation since the 70s and its particular development in the aftermath of the GFC in the context of financialisation
     
     
     • reflect upon the themes of complexity, interconnectedness, and domino effects, competing priorities
     
     
     
     
   
   
   • conduct regulation
     
     
     
     • demonstrate an understanding of the evolution of conduct regulation and the tensions with self-regulation, codes of conduct, non-statutory or soft law means of regulation operate in the conduct space
     
     
     • critically engage with the different priorities and evolution of regulations in the wholesale and retail spaces across a range of sub-sectors
     
     
     • critically reflect upon the themes of fairness, freedom , choice, financialisation and justice
     
     
     
     
   
   
   
   

1. Recognise the links between micro-prudential, macro-prudential, conduct and other forms of regulation, as well as the links to law and economics (including crime and competition)


2. Understand the competing priorities and dimensions at national and international levels from a regulatory perspective and how gaps : overlap/ underlap of regulatory objectives, log-rolling etc can result in stakeholder detriment


3. Recognise the effects of corporate governance and social psychology, (including corporate psychology and culture)


4. Be able to articulate in a detailed manner the sources and consequences of lobbying, regulatory capture and cognitive regulatory capture.


5. Engage with the needs of civil society understanding both objectives and priorities


6. Be critical and cognisant of the broader contextual factors affecting regulation such as real economic needs, financialisation, political will, unintended consequences of regulation and international dimensions to domestic problems


7. Recognise the implications of regulatory resourcing – particularly in the context of regulatory accountability


8. Be cognisant of the consequences of new regulatory initiatives and technology


9. Understand how regulators can be held accountable and how this relates to conceptual and philosophical questions around regulation

Additional outcomes:

Outline content:

This module explores advanced regulatory challenges in relation to regulated entities, markets, stakeholders and the regulator itself. Using insights from history, sociology, politics, strategy, international relations, law and psychology this module encourages students to engage with topics such as complexity, interconnectedness, domino effects, competing priorities, legal and financial engineering, incentives, positions of significant influence, lobbying, cognitive regulatory capture, sustenance of competition, political will, unintended consequences of regulation and international dimensions to domestic problems. Real economy implications, critical analysis of key issues, and considerations of responsibility and accountability will serve as a backdrop for the elaboration of conceptual and philosophical questions around real-world examples and circumstances. The module is heavily oriented to the practice of regulation; therefore study within this module will be animated by simulating realistic regulatory experiences using practical, topical examples, and by examining the evidence emerging from current and historical successes, failures and crises and their impact on stakeholders.

Brief description of teaching and learning methods:

Taught content for this module will primarily be delivered through lectures and syndicated learning, which will be delivered in four full-day sessions either at Henley Business School or at a central London location. Where appropriate materials and learning will also be shared through the Virtual Learning Environment (VLE) that is intended to facilitate and aid your learning journey within the MSc Programme

Summative assessment- Examinations:

One two hour closed book exam (weighted at 50% of the final mark)

Summative assessment- Coursework and in-class tests:

One 2,000 word coursework essay on a set topic, due the week following the final class.

Formative assessment methods:

Penalties for late submission:
Penalties for late submission on this module are in accordance with the University policy. Please refer to page 5 of the Postgraduate Guide to Assessment for further information: http://www.reading.ac.uk/internal/exams/student/exa-guidePG.aspx

Assessment requirements for a pass:
50% weighted average mark

Reassessment arrangements:

Two hour closed book resit exam during the University resit period

Additional Costs (specified where applicable):

Last updated: 8 April 2019