ICM338-Financial Regulation

Module Provider: ICMA Centre
Number of credits: 20 [10 ECTS credits]
Level:7
Terms in which taught: Spring term module
Pre-requisites:
Non-modular pre-requisites:
Co-requisites:
Modules excluded:
Current from: 2022/3

Module Convenor: Ms Deepa Govindarajan Driver
Email: d.govindarajan@icmacentre.ac.uk

Type of module:

Summary module description:

This module develops a broad understanding of and critical perspectives on the basis for, purpose of, design, application and consequences of financial regulation globally.Ìý

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Aims:

This module aims toÌý

• provide an overview of the purpose of financial regulation and its relationship to the real economy and the financial economy


• discuss how purpose can affect design and application in the context of other factors such as political pressure, regulatory capture, revolving doors and lobbying


• Ìýexamine the consequences of financial regulation and financial sector reform for different markets and jurisdictions, including that of the students’ home countries.Ìý

Assessable learning outcomes:

Through engaging effectively with this module, it is expected that students will be able to:

• Explain the conceptual basis of, and the various theoretical approaches to, regulation with a particular emphasis on its public interest motives


• Critically reflect on financialisation and its impact on the real and financial economies.Ìý


• Explain and contextualise the rationales for regulation more generally, with the rationales within a financial services context and relate these rationales to money creation, financialisation, regulatory purpose, structures, design and application


• Evaluate and critically reflect on what is entailed by financial regulation and how, when, where and why financial regulation is envisaged, implemented or retired


• the regulatory perimeter and its implications including for macro-prudential, micro-prudential and conduct regulation


• the different toolsand techniques in prudential and conduct regulation and the challenges and benefits of their contextual application


• the precepts underlying key international prudential and conduct regulatory requirements as well as requirements in the areas of governance and culture


• Articulate clearly the implications of financial crises and failures on the real economy including the consequences ofÌý


• regulatory capture, revolving doors, lobbying and other aspects pertinent to regulatory remit and conduct


• regulatory arbitrage and other mechanisms that undermine or erode the spirit of regulation and be able to apply these concepts in a practical context


• Critically reflect at a high-level on the transnational dimensions of financial regulation

Additional outcomes:

• Recognise and articulate both in writing and verbally the broader stakeholder implications and regulatory nuances to the failure of financial firms.Ìý


• Review academic materials and critically examine a range of concepts related to the underlying subject matter verbally and in writing, both individually or as part of a group so as to develop and demonstrate understanding of the subject area.

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Outline content:

Key topics of study are as follows:

• Conceptual basis and rationales for regulation and how this relates to financial regulation


• Financialisation and money creation – implications for risk and regulation


• Regulatory types, structures, tools and techniques set against real cases and implications for the real economy


• Crises and regulation with particular emphasis on the global financial crisis of 2007


• Regulatory resourcing, lobbying, regulatory capture, cognitive regulatory capture, revolving doorsÌý


• Context of international financial architecture and some key international and domestic requirementsÌý


• Current topics including implications of digitalisation, high frequency trading and surveillance capitalism

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Global context:

This 20-credit module is intended to prepare students for careers in law and regulation and for senior roles within the regulated financial services industry and in public service or in statutory bodies. It is also valuable to those students preparing for roles in risk management, internal and external audit, and compliance.

The module is open to students across the ICMA Centre, the Law School and other departments within the °ÄÃÅÁùºÏ²Ê¿ª½±¼Ç¼

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Brief description of teaching and learning methods:

Summative assessment- Examinations:

N/A

Summative assessment- Coursework and in-class tests:

The written assignment is an essay of approximately 3000 words (excluding references, footnotes and appendices) along with an annotated reference list and is due to be handed in Weeks 3-4 of the summer term.

Formative assessment methods:

Weekly written and verbal contributions to lectures and seminars as applicable. Reflective contributions based on homework or self-study.

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:

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Assessment requirements for a pass:

50% weighted average mark.

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Reassessment arrangements:

Re-submission of assignment

Additional Costs (specified where applicable):

1) Required text books: £150

Ìý2) Specialist equipment or materials:Ìý

3) Specialist clothing, footwear or headgear

4) Printing and binding: £25Ìý

5) Computers and devices with a particular specification

6) Travel, accommodation and subsistence

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Last updated: 22 September 2022