About Us

MSc Capital Markets, Regulation and Compliance

Date: 16 February, 2012  Page Author: André Mansi

Applications are open for 2012 entry (full-time)

Regulation, compliance and risk management have quite rightly received intense scrutiny and interest in the aftermath of the global financial crisis.

Today, businesses and regulators face growing pressure to address national and international regulatory demands. They are therefore paying unprecedented attention to the quality of the staff in these areas.

The financial services sector consequently has a strong need for professionals who grasp the key challenges in governing and managing the risks faced by financial institutions. This programme addresses this need for qualified and experienced staff. The programme covers a wide range of European, US and international regulatory matters. The regulation and compliance courses within this programme can be combined with both quantitative and non-quantitative courses.

The focus is on honing your decision-making skills in respect of risk and regulatory issues as well as on improving analytical skills and technical expertise. These objectives are achieved through a combination of rigourous academic engagement and working with practical case studies both individually and in groups.

The degree prepares you for a role as a practitioner, auditor, consultant or regulator in the financial services sector. This programme is ideal for those with experience of working within a financial services environment who wish to enhance their careers through building their risk, regulatory and compliance skills in a challenging and pragmatic University setting. We also welcome applications from recent university graduates from a wide range of disciplines.

Entry Requirements

Entry requirements

Undergraduate Degree
 Minimum 2:1 or the equivalent from an overseas institution*.
Degree Discipline
 Any discipline – no quantitative requirement.
GMAT
 No requirement.

* Please note that due to increasing competition for places on our Masters programmes our entry requirements may change.

We operate a rolling admissions system and you are therefore advised to apply early in order to be sure of your place on our programmes. We are experiencing high levels of demand for 2012 entry, and it is possible we will have to close applications to some programmes once places are filled.

English requirements

Proficiency required for International students enrolling in this degree for entry in September 2012 are:

TOEFL (Test of English as a foreign language): Overall score of 88 for the internet based test, with no less than 22 in Reading, 21 in Listening, 23 in Speaking and 21 in Writing.

IELTS (British Council International English Language Test): Score of 6.5 overall with no component in the test less than 6.0.

 

Proficiency required for international students enrolling in this degree for entry in September 2013 will be:

TOEFL (Test of English as a foreign language): Overall score of 100 for the internet based test, with no less than 22 in Reading, 21 in Listening, 23 in Speaking and 21 in Writing.

IELTS (British Council International English Language Test): Score of 7.0 overall with no component in the test less than 6.5.

 

Contact

For more details, contact Kim Mountford, Admissions Officer, at k.mountford@icmacentre.ac.uk

Fees

Fees 2012-13

Full-time Flexible Learning Distance Learning
MSc Capital Markets, Regulation and Compliance £18,000 £17,000 £15,000

 

Fees are the same for both EU and overseas students.

Fee structure for the flexible and distance learning programmes is for the length of the entire programme (ie 18 months or 24 months respectively)

Living expenses are in addition to the above fees. Overseas full-time participants can expect to spend approximately £9,400 on additional living expenses during the course of their studies. Home/EU full-time participants can expect to spend approximately £8,000 on additional living expenses during the course of their studies. Flexible participants can expect to spend approximately £5,000 during their part 2 studies.

How to apply

Full-Time MSc Applications

Applications closed for 2011 entry:

Applications for 2012 entry are open for all programmes.

The ICMA Centre operates on a rolling admissions basis, meaning that prospective students can apply for our programmes throughout the year, however we do advise to apply early in the year. We aim to return a decision within 4-6 weeks of receiving your application.

Full-time applicants can apply online or download our application form and complete it by hand.

Flexible and Distance Learning Applications

We accept online applications only for flexible and distance learning.

Applications closed for all flexible and distance learning programmes for 2011 entry. Applications are open for 2012 entry.

Learning options

Learning Options

Full-time:  9 months
Flexible:    18 months
Distance:   24 months

FAQs

Do I need to take GMAT?

If you are unsure as to the need to take GMAT (Graduate Management Admissions Test), please apply without taking it. We will advise in the form of a conditional offer if we think that it is necessary for you to take it. Obtaining a good score of 600 or above and a good score in the quantitative section of the test can support your case at the Admissions Committee. The GMAT is not a mandatory requirement for applications to the MSc programme, but can enhance an application. More information about the GMAT can be obtained at www.mba.com.

When is the deadline for applications?

There is no fixed deadline for full-time applications. However, you are advised to apply early, as the admission process can take up to 4-6 weeks to complete. Places become very limited from June onwards. You are encouraged to telephone the Centre after that date to clarify the situation.

Deadline for Flexible and Distance Learning applications: Friday 10 August 2012.

How long will it take to receive an answer to my application?

The admissions process will take up to 4-6 weeks from receipt of a completed application. We will endeavour to process your application sooner, however, the delay is normally due to outstanding supporting documents.

My referee has sent his reference direct, is this OK?

Yes. We keep all references and match them with applications when they are received.

Who decides on the suitability of an application?

Each application is considered by the Admissions Committee, made up of academic members of staff and the Admissions Officer.

How do I pay the £1000 deposit and when is the deadline?

By Sterling cheque payable to the University of Reading by credit card or bank transfer.

Applicants accepted on to an ICMA Centre MSc programme should pay their deposit by the deadline indicated in the  recommendation e-mail from the ICMA Centre.

Where do I send my information proving that I have fulfilled my conditions?

Send this information to the Postgraduate Admission Office, the ICMA Centre will be automatically updated. Their full address is:

Postgraduate Admissions Office
Henley Business School
University of Reading
Whiteknights
PO Box 218
Reading
RG6 6AA

Am I qualified to do this programme?

We can only give a considered answer to this question if we have received a completed application form and supporting documents. Without this information it is difficult to make any evaluation of your previous qualifications.

To whom should I address any queries about my application?

All queries should be addressed to the Admissions Team: admissions@icmacentre.ac.uk.

Does the ICMA Centre provide funding? If not, how do I fund the programme?

A range of scholarship awards are available. Please refer to the ICMA Centre Scholarships pages for further details.

How do I arrange accommodation?

All enquiries concerning accommodation should be directed to Student Services, telephone number +44 (0)118 378 5555.

Additional information

Careers

Careers in Regulation and Compliance

The financial services sector has an ever-expanding need for graduates trained in the fundamentals of compliance, governance and regulation. This increasing demand has been fuelled by implementation of a number and rules and laws, including the EU Market Abuse Directive, Markets in Financial Instruments (MiFID), global standards such as Basel II, and the FSA and US regulatgors’ focus on principles-based regulation, all of which require significant in-house compliance resources.

With recent explosive growth in capital markets such as China,India, the Middle East and Eastern Europe, combined with the increasing complexity of financial products and a growing sophistication on the part of investors and market participants, there are immense challenges facing institutions, compliance professionals within them and regulators.

Our graduates are in a very strong position to build successful careers in the compliance or legal divisions of investment banks, fund managers and hedge funds, retail banking institutions and other market participants.

There is also a possibility of an industry internship during the degree.

For more information regarding graduate destinations, please visit www.icmacentre.ac.uk/careers.

Professional Development and Accreditation

ICMA International Fixed Income and Derivatives (IFID) Certificate

Students who successfully complete this degree including the module International Securities Markets will be granted this certificate.

CISI Diploma

Students are eligible for exemption from two Diploma modules:

  • Financial Derivatives
  • Bonds and Fixed Interest Securities

Further information is available regarding exemptions in MScs and Professional Qualifications.

Module listing and descriptions

NB. All our Masters degrees comprise a total of 180 credits: 80 credits at Part One and 100 credits at Part Two. Please note that module titles or content may vary each year.

Part 1 Modules

Part 1 Modules

Securities, Futures and Options

Module convenor: Professor Chris Brooks20 credits

Introduces techniques for analysing and valuing different classes of risky assets. It also develops ways of optimally selecting portfolios of such assets and develops models of how these portfolios may be priced in financial markets. The techniques introduced in this module are widely applied in other elements of the programme. Outline: Financial assets and investing in securities markets; Investors and their objectives; Risk and capital allocation; Optimal portfolio selection; Capital asset pricing model; Single index and multifactor models; Arbitrage pricing theory; Derivative securities and the no-arbitrage principle; Forwards and Futures contracts; Simple hedging; Options basic properties and trading strategies.

Available learning modes:

  • Full time
  • Flexible learning
  • Distance learning

Fixed Income and Equity Investments

Module convenors: Dr George Alexandridis  | John Evans  | 20 credits

Fixed Income and Equity Investments deals with the valuation of fixed income and equity securities. The module focuses on the basic characteristics of each security and the strategies used for approximating their fundamental value and assessing their risk. Its primary aim is to discuss how certain characteristics and relationships can affect the value of fixed income and equity securities and how can they be exploited to form optimal investment strategies. The analytical techniques introduced in this module are widely applied in other elements of the programme. Outline: An introduction to securities,  Applying time-value-of-money (TVM) and probability theory to value financial instruments,  Bond prices and yields, Introduction to default risk, Term Structure of Interest Rates, Interest rate risk, Active Bond Management,  Economic and Industry analysis, Financial Statement Analysis, Equity Valuation, Behavioural Finance and Technical analysis  

Available learning modes:

  • Full time
  • Flexible learning
  • Distance learning

Financial Markets

Module convenor: Dr Alfonso Dufour20 credits

Provides knowledge of global financial markets, the importance of liquidity, the distinction between exchange versus OTC markets, primary and secondary markets and the role of intermediaries in their various forms. Participants will gain an understanding of: international stock and bond markets, repo markets (for borrowing/lending on a secured basis); an introduction to foreign exchange and money markets, and to futures markets (which are developed in more detail in optional Part 2 modules); finally specific markets for commodity and energy are studied in more detail.

Outline content

  • General introduction to world financial markets
  • Liquidity, the distinction between exchange versus OTC markets and the role of intermediaries in their various forms
  • Short-term debt securities issued by government and corporations
  • Classification of bonds according to issuer: government, agencies, corporate and municipa
  • Comparison of bond markets in major countries and a description of the main intermediaries and their role
  • Foreign exchange market, quotation conventions, types of brokers, central banks? policies
  • Primary and secondary stock markets
  • Futures markets
  • Commodities markets
  • Energy markets.

Available learning modes:

  • Full time
  • Flexible learning
  • Distance learning

Regulation, Risk Management and Compliance Part 1

Module convenor: Miss Deepa Govindarajan20 credits

This 2- part course is intended as an advanced study of the key challenges for risk management, regulation and compliance within the financial sector. We will begin by understanding the key risks posed by and to financial firms, markets and intermediaries. We will also examine the issues different stakeholders confront when interacting with financial firms. We will then evaluate how regulation helps address risk and ensure stakeholder interests are given due protection. We will also study the role of the compliance and risk management functions within financial firms. The practical creation of risk management frameworks and compliance plans will be studied. The interaction between risk, management, compliance, internal audit and the business will be examined through practical classroom exercises and interaction with practitioners.  

Indicative Outline Content:

a)     Financial Firms, Products and the role of intermediaries

  • Objectives, strategy and Key sources of risk in Banking, Asset Management, Insurance and Payment Services
  • Organisational construction and typical key stakeholders
  • The Oversight of Risk
  What do we mean by prudential and conduct of business matters?
  • Risk appetite
  • Governance and Culture
  • Systems and Controls
  • Risk Management Frameworks
  • 3 Lines of Defence model
§  Compliance, risk management, audit and finance – roles and responsibilities  

b)     The Theory and Practice of Financial Regulation

  • Historical Context for Regulation
  • The legal basis of regulation and “duties”
  • Regulation today and Regulatory Objectives
Regulation of Markets and Traders Basel 2, Basel 3, Solvency 2, UCITS, MiFID, TCF, the regulatory handbook
  • The international regulatory environment and Regulation in the EU
 

c)     Practical Issues in Risk Management, Internal Audit and Compliance

  • Risk Management Frameworks and Key Risk Types
  • Risk Appetite, Risk Tolerance, Risk Profile
  • The constitution of the risk management function
  • The role of internal audit
  • Compliance theory and practice
Building a compliance function Creating a compliance plan Testing compliance
  • Enterprise Risk Management
  • The key practical challenges for risk management and compliance
  • Delivering business value

Available learning modes:

  • Full time
  • Flexible learning
  • Distance learning

Introduction to Quantitative Methods for Finance

Module convenor: Professor Carol AlexanderNot for credit

This non assessed, compulsory course provides an introduction to three main areas of mathematics and statistics that are used in finance; Probability and Statistics, Linear Algebra, and Regression Analysis. The emphasis is on the financial applications of quantitative techniques.

Part 2 Modules (Compulsory)

Regulation, Risk Management and Compliance Part 2

Module convenor: Miss Deepa Govindarajan20 credits

This 2-part course is intended as an advanced study of the key challenges for risk management, regulation and compliance within the financial sector.  We will begin by understanding the key risks posed by and to financial firms, markets and intermediaries. We will examine the issues different stakeholders confront when interacting with financial firms. In parallel we will set out the historical context and theoretical basis of regulation. Through these topics we will examine how financial markets (incentivisation in primary and secondary markets, the role of the national exchange, MTFs, second tier markets, OTC and private markets, issue of investor exit and liquidity) should be regulated. We will also look at regulation against market abuse and misconduct (including insider trading, the rationale for and against regulation, the issues of fairness, the issues of redress under criminal, civil and administrative law), price transparency regulation (rationales for regulation, relationship to market fragmentation, the carve-outs and waivers), and the regulation of supporting infrastructure (payment and clearing systems, custodial arrangements, insolvency). We will explore at the practicalities of regulation and the roles of various key regulators both domestically and internationally. This includes the Basel Committee, EBA, EIOPS and ESMA, national regulators (both in the developed and the developing world), sector regulators for banking, insurance, asset management and securities, the European Commission and others, We will then evaluate how regulation helps address risk and ensure stakeholder interests are given due protection. We will also study the role of the compliance and risk management functions within financial firms. The practical creation of risk management frameworks and compliance plans will be studied. The interaction between risk, management, compliance, internal audit and the business will be examined through practical classroom exercises and interaction with practitioners.

Outline content

  • Financial Firms, Products and the role of intermediaries
  • The Theory and Practice of Financial Regulation
  • Practical Issues in Risk Management, Internal Audit and Compliance
 

Available learning modes:

  • Full time
  • Flexible learning
  • Distance learning

Part 2 Modules (Optional)

A choice of 80 credits from:

Ethics in Finance

Module convenor: Dr Carol Padgett10 credits

To introduce students to different schools of ethics and to give them the framework they need to identify ethical and non-ethical responses to the choices they will face in the finance industry. By the end of the course students will appreciate the ethical standards imposed by financial regulators. They will be able to identify the ethical dimension involved in the decision-making process, and be able to discuss the conflicts between economic efficiency and ethical behaviour.

Outline content

  • Introduction to ethical theory
  • Decision-making, leadership and regulation in financial markets
  • Market integrity
  • Fund management and socially responsible investment
  • Corporate governance
  • Mergers and acquisitions

Available learning modes:

  • Full time
  • Flexible learning
  • Distance learning

New Approaches to International and European Financial Market Regulation

Module convenor: Miss Deepa Govindarajan10 credits

We will challenge current and past thinking on regulatory structures and concepts especially in the context of the recent financial crisis, which provides us with a rich source of information on the pros and cons of various options. One of the key aims to provide students with the broader risk management skills and knowledge required to work within the financial services industry. We will also aim to gain an understanding of the role and working of risk management, compliance, internal audit and allied functions in financial firms.

Outline content

  • Regulatory context- the crisis
  • Regulatory Objectives - What are we trying to legislate for
  • Regulating risk - Prudential and conduct of business issues.
  • Governance and Culture
  • Systems and Controls
  • Compliance, risk management, audit and finance - roles and responsibilities
  • Can regulators rely on these functions - how to test their efficacy
  • Regulatory Architecture
  • International regulatory architecture
  • European regulatory architecture
  • UK regulatory structures
  • Regulation today, key areas of legislation and regulatory tools
  • Basel 2
  • Basel 3
  • Solvency 2
  • UCITS
  • MiFID
  • Regulatory tools

Available learning modes:

  • Full time
  • Flexible learning
  • Distance learning

International Securities Markets

Module convenor: John Evans10 credits

International Securities Markets applies general valuation risk assessment methods to: fixed income securities, derivatives and markets. It describes the basic characteristics of each fixed-income security, cash and underlying, and develops practical strategies for finding its value and assessing its risk. It also considers how the markets for these securities are related and begins the task of showing how these relationships can be exploited for trading or investment. The analytical techniques introduced in this module are very applied to allow the successful candidate to apply directly to industry the more theoretical market valuation and risk models learned in other core modules taken in the first term. Outline: FIxed income Analysis, Rates Trading and Hedging I, Rates Trading and Hedging II, Credit Analysis and Products I, Credit Analysis and Products II

Available learning modes:

  • Full time
  • Flexible learning
  • Distance learning

Legal Aspects of International Finance

Module convenor: Dr R Olivares-Caminal (School of Law)20 credits

Legal Aspects of International Finance examines the legal issues arising from the operations of the largest commercial banks, merchant banks and investment banks on the international banking and capital markets. In so doing, it considers the detailed structure and content of the main international financial transactions and contracts and negotiation skills involved. Although primarily based on an examination and analysis of current international principles, reference is made to relevant laws, including those of the EU, the US and Asia and national systems. The course has a strong comparative and international law aspects to it as well as being based on current market and practitioner insight and best practice in each area.

Outline content

  • Understanding the financial needs of companies
  • Access to capital markets and debt financing alternatives
  • Syndicated loans; Securitisation; Eurobonds
  • Risk mitigation
  • Legal Opinions

Available learning modes:

  • Full time

Real Estate Finance

Module convenor: Dr Gianluca Marcato10 credits

The module will enable students to interpret the main principles of corporate finance with an appropriate emphasis on real estate. It will also allow students to recognise the strategic importance of real estate to corporate financial decision making. By the end of the module it is expected that students will be able to:
  • Develop skills in the estimation and evaluation of alternative approaches to capital budgeting decisions;
  • Critically compare and contrast alternative methods of financing core projects;
  • Understand the importance of real estate to corporate strategic financial decisions;
  • Value real options and understand how they can be applied in a real estate context.

Outline content

  • The reporting of real estate in company accounts
  • Performance of real estate companies assessed through accounting numbers and ratios
  • Comparison of valuation methods used in finance and in property
  • Traditional methods of property appraisal and development
  • Review of Capital Budgeting techniques applicable to real estate investment and development applications
  • Principles underlying decisions about capital structure, debt and equity financing, Project vs. company funding, application to real estate lease or buy decision (financial and accounting issues)
  • Real estate financial decisions with applications of real options

Available learning modes:

  • Full time
  • Flexible learning
  • Distance learning

Research Project

Module convenor: Professor Charles Sutcliffe20 credits

The aim of the research project is to allow students to define and execute a piece of research in finance on a topic of their choice, with direction from an academic supervisor and with assistance from a doctoral student support supervisor. The Learning Outcomes of this module are:
  • Successful completion of the research project requires students to define and execute a piece of research in finance.
  • They will be required to seek out and to critically evaluate published literature in a particular field.
  • Students will improve their report-writing skills, learning how to structure their study, and how to place their findings in the wider context
 

Available learning modes:

  • Full time
  • Flexible learning
  • Distance learning

The Principles of Islamic Commercial Jurisprudence and the Nominate Contracts

Module convenor: INCEIF Faculty10 credits

Provides students with the opportunity to study the juristic basis of Islamic finance, and the nominate contracts that are set out in Islamic commercial jurisprudence (the Fiqh al Muamalat). Students will develop an understanding of the principles of Islamic jurisprudence and its nominate contracts, and how these are applied in Shari’ah compliant financial products and services.

Outline Content

  • The origins of Islamic commercial jurisprudence
  • Prohibitions to be respected in order for Islamic contracts to be valid:
  • Avoidance of riba (pure return on money), maysir (speculation), and gharar (uncertainty or ambiguity of subject       matter)
  • The frequently used nominate contracts
  • Overview of Islamic financial products and their basis in nominate contracts (see Module 255)
  • Shari’ah governance of Islamic financial institutions
  • The IFSB Guidelines on Shari’ah governance

Topics in the History of Finance

Module convenor: Professor Adrian Bell10 credits

This module aims to provide students with an understanding of the origins of Financial Markets, and with a broader appreciation of the early development of products and innovations in Finance - which many assume are recent twentieth century inventions. By the end of the module it is expected that the student will be able to:
  • Identify and explain key issues and events in the History of Finance
  • Acquire a detailed knowledge of the events through extensive reading in specialised literature
  • Locate and assemble information on the subject by independent research
  • Appraise critically the primary sources and historical interpretations of the subject
  • Organise material and articulate arguments effectively in writing, both under timed conditions and in assessed essays.
 

Outline content

The module will focus on topics that can throw light on the development of financial markets over time. It is not restricted by date, but will draw mainly upon Medieval Europe for its focus. Topics will include:
  • Forward Contracts for the supply of Wool in the 13th Century
  • Early Italian Merchant Banks - Riccardi, Bardi
  • The English Company of 1339
  • The South Sea Bubble - John Law
  • War Finance
  • Tulip Mania

Available learning modes:

  • Full time

Up to 40 credits of these optional modules can be substituted by modules from the ICMA Centre annual list of Part 2 optional modules subject to satisfying any pre-requisites; or from any additional module provided by the School of Law.

Come and see us

Why not make an appointment to come and visit. You can chat with our Admissions and Careers teams and a member of academic staff. Email admissions@icmacentre.ac.uk or call +44 (0)118 378 8239.

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