Programme Content Part 2

Part 2 - Compulsory Module

Regulation, Risk Management and Compliance Part 2

Convenor: Deepa Govindarajan    Credits: 20

This 2 - part course is intended as an advanced study of the key challenges for regulation, risk management 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. 

Outline content: Financial firms, products and the role of intermediaries - Objectives, strategies and the key sources of risk; The oversight of risk - prudential and conduct of business issues, governance, culture, systems and controls, risk management frameworks, 3 lines of defences, the roles of risk management, compliance, audit and senior management, roles and responsibilities of audit and finance; The Theory and Practice of Financial Regulation - Historical context for regulation, the legal basis of regulation and "duties", regulation today and regulatory objectives including regulation of markets and traders, Basel 2, 3 and 4, Solvency 2, UCITS, MiFID, TCF, the regulatory handbook, the international regulatory context and regulation in the EU; Practical Issues in Risk Management, Audit and Compliance: risk management frameworks, key risk types, risk appetite, risk profile, risk tolerances, the constitution of the risk management function, building a compliance function and a compliance plan, testing compliance, Enterprise risk management, the practical challenges for risk management and compliance, delivering business value.

Part 2 - Optional Modules

A choice of 80 credits from:

* Please note that at this time those modules with asterisks against them are not available on a distance learning basis.

Ethics in Finance

Convenor: Dr Carol Padgett    Credits: 10

Introduces different schools of ethics and provides the framework needed to identify ethical and non-ethical responses to choices faced in the finance industry. Investigates the ethical standards imposed by financial regulators. Identifies the ethical dimension involved in the decision-making process and the conflicts between economic efficiency and ethical behaviour.

Outline Content: Introduction to ethics; Regulation in financial markets; Socially responsible investment; Insider dealing; Corporate governance; Mergers and acquisitions; Regulation: Enron; Screening and “ethical” portfolios; Insider dealing: ImClone; Bankruptcy: WorldCom case; Hostile takeovers: Comcast and Disney; Vasiek's short rate model; Market calibrated short rate models of Ho / Lee and Hull - White; Valuation of interest rate products.

New Approaches to European and Interantional Financial Market Regulation

Convenor:  Deepa Govindarajan     Credits: 10

The course provides a broad overview of the key challenges for regulation and approaches to enhanced regulation of the financial sector following the financial crisis.

We will look at prudential regulation that is designed to maintain systemic stability while also protecting depositors, investors and counterparties in banking, securities and derivatives markets. We will understand conduct of business regulation, and the role played by risk oversight, effective governance and culture.

We will also examine the issues different stakeholders confront when interacting with financial firms. We will then evaluate how regulation helps address risks and ensure stakeholder interests are given due protection.

In parallel we will set out the historical context and theoretical basis of regulation. We also look at the practicalities of regulation. We will examine the regulatory architecture 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. Through these topics we will examine why and how financial firms should be regulated.

We will also study the relationships between regulators and senior management, compliance and risk management functions within financial firms. 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: 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? - Testing 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 ¾, Solvency 2, UCITS, MiFID, Regulatory tools.

International Securities Markets

Convenor: John Evans    Credits: 10

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 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 Content: Fixed Income Analysis; Rates Trading and Hedging I & II; Credit Analysis and Products I & II.

Legal Aspects of International Finance

Convenor: Dr R Olivares-Caminal (School of Law)    Credits: 20

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.

Real Estate Finance

Convenor: Prof Charles Ward     Credits: 10

Aims to apply some key corporate finance issues using real estate as the core example. Examines what makes real estate different, why companies are selling it and how it is affected by mergers and take-overs. Real estate is one of the most important assets held by companies, it is used as security for more debt than any other asset, widely used in leasing transactions yet hardly figures in any corporate finance textbook.

Research Project

Convenor: Prof Charles Sutcliffe     Credits: 20

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.

Outline Content: The self-directed nature of study for this model should encourage students to be resourceful in their search for relevant literature and data, and to manage the various stages involved effectively, leading to timely submission of the finished piece.

The Principles of Islamic Commercial Jurisprudence and the Nominate Contracts

Convenor: INCEIF Faculty    Credits: 10

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).

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; Shari'ah governance of Islamic financial institutions; The IFSB Guidelines on Shari'ah governance.

Topics in the History of Finance

Convenor: Prof Adrian Bell     Credits: 10

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.

 

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.