ICM294-Governance and Compliance in Financial Services

Module Provider: ICMA Centre
Number of credits: 20 [10 ECTS credits]
Level:7
Terms in which taught: Spring term module
Pre-requisites: ICM128 Risk Management in Financial Services
Non-modular pre-requisites:
Co-requisites: ICM295 Topics in Financial Regulation
Modules excluded:
Module version for: 2016/7

Module Convenor: Ms Deepa Govindarajan Driver

Email: d.govindarajan@icmacentre.ac.uk

Summary module description:

Aims:
This module enables students to develop a deep practical understanding of the corporate governance and compliance challenges specific to financial intermediaries and how these should be addressed within regulated firms.

Assessable learning outcomes:

Additional outcomes:

Outline content:
This module focuses on two primary topics of importance to financial intermediaries:
•corporate governance
•compliance
Having understood the key risks posed by financial intermediaries, in the first term focussed on risk management, we will now examine the roles and responsibilities of those involved with managing and mitigating these risks. We will look at corporate governance in relation to the underlying strategies that cause the risks that global, multinational financial firms pose to the economy. We will evaluate prudential, conduct-of-business and systemic issues and the importance of corporate governance arrangements within financial firms. It is expected that students will develop a meaningful understanding of the legal and academic basis for corporate governance and the need for accountability. We will examine the range of governance conceptions ranging from a statutory compliance approach to a broader appreciation of corporate responsibility. Through a selection of case studies, we will then examine the practical challenges and constraints for ethical and responsible corporate decision-making. Finally we will examine policies, arrangements, tools and techniques that help foster responsible corporate decision-making and enhance stakeholder protections. We expect students to achieve an appreciation of the national and regional governance differences, the need for ethical conduct in the financial services sector. Over time students should be able to tackle in a critical, responsible and reflective manner the moral issues which can arise while concluding financial services transactions.
In parallel, we will set out the legal, regulatory and other requirements set out for financial services firms and how compliance can be achieved. We will study the role of the compliance function and the Compliance Officer within financial firms. The practical creation of compliance plans will be studied. We will discuss statutory and regulatory returns and attestations, approved persons, KYC requirements, treating customers fairly, new product approvals, financial promotions, best execution, client categorisation, suitability, fees, conflicts of interest, Chinese walls, whistleblowing, watch lists, compliance monitoring training and other key topics. The interaction between compliance, regulators, risk management, internal audit and the business will be examined through practical classroom exercises and interaction with practitioners and regulators.
Case studies, current legal positions and interactive student discussions or presentations are used in most lectures. In addition legal, academic, practitioner and regulatory insights will be developed through specialist guest lectures and visits.
More widely, the MSc CMRC programme aims to:
•provide students with a sound, practical and theoretical basis for successful careers in risk management, compliance, regulation and allied work streams within the financial industry
•challenge current and past thinking on the role of financial firms and risk management, governance and compliance.
•encourage students to examine 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.
•provide students with the skills and knowledge needed to gain an understanding of the reform processes and their consequences for markets around the world
Skills are developed through creating a broader understanding of financial firm risk-taking, accountability, governance and the challenges regarding transparency and self-correction in cases where governance has failed. The emphasis is on a deeper analysis of mainstream and critical authorship.

Global context:
This 20-credit module is the second part of a three-part programme, preparing students for careers in risk management, internal audit, compliance and regulation, in addition to more senior roles within the business.

Brief description of teaching and learning methods:

Contact hours:
  Autumn Spring Summer
Lectures 20
Seminars 8
Guided independent study 172
       
Total hours by term 200.00
       
Total hours for module 200.00

Summative Assessment Methods:
Method Percentage
Written exam 70
Written assignment including essay 30

Other information on summative assessment:

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

Length of examination:
3 hour closed book written examination

Requirements for a pass:
50% weighted average mark

Reassessment arrangements:
By written examination only, as part of the overall examination arrangements for the MSc programme.

Additional Costs (specified where applicable):
1) Required text books: Corporate Governance and the Global Financial Crisis ISBN 9781107411715 £34.99
2) Specialist equipment or materials:
3) Specialist clothing, footwear or headgear:
4) Printing and binding:
5) Computers and devices with a particular specification:
6) Travel, accommodation and subsistence:

Last updated: 21 December 2016

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