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Unit information: Regulation of Financial Markets and Institutions in 2019/20

Please note: Due to alternative arrangements for teaching and assessment in place from 18 March 2020 to mitigate against the restrictions in place due to COVID-19, information shown for 2019/20 may not always be accurate.

Please note: you are viewing unit and programme information for a past academic year. Please see the current academic year for up to date information.

Unit name Regulation of Financial Markets and Institutions
Unit code LAWDM0017
Credit points 30
Level of study M/7
Teaching block(s) Teaching Block 4 (weeks 1-24)
Unit director Dr. Lu
Open unit status Not open
Pre-requisites

None

Co-requisites

None

School/department University of Bristol Law School
Faculty Faculty of Social Sciences and Law

Description

Recent events globally and nationally have placed financial markets and financial market regulation under intense scrutiny. In the UK, government bailouts of major financial institutions and the ongoing de facto nationalization of “too big to fail” elements of the entire financial sector, have been the impetus for significant structural reform of the UK’s regulatory architecture. Similar difficulties within the EU have led to equally dramatic reform of the EU’s regulatory architecture as it relates to the financial sector.

The origins of these events – which can be traced back to the implosion of the US sub-prime mortgage market – have threatened to de-stabilise the economic well-being of many otherwise healthy economies and to plunge the world into a global downtown.

Set against this background, the unit covers a selection of topics in financial markets law mainly, though not solely, in relation to securities regulation (rather than the regulation of high street banking or insurance business). The focus is on the public aspects of regulation (such as the role, rule-making and enforcement powers, and accountability of the major regulatory agencies) rather than on the private law rules (such as tort, contract etc), or on the transactional aspects of financial arrangements (such as warranties, pledges, repypothecation etc). Although the unit focuses on the regulation of UK financial markets and institutions, it does so in the context of relevant EU law and emerging international norms and initiatives.

Topics covered include: nature and function(s) of financial services; justifications for and methods of regulation; the European Dimension—Financial Services Action Plan (FSAP), the Lamfalussy process, the EU’s new financial architecture post the de Larosiere Report; the UK’s regulatory framework as established by the Financial Services and Markets Act 2000 (as amended) – the “death” of the “single regulator” and the “birth” of a new “twin peaks” architectural framework; the powers and responsibilities of the Prudential Regulation Authority (PRA) and the Financial Conduct Authority (FCA), and the means by which they are rendered accountability; “judgment led” regulation and “principles based/outcomes focused” regulation; investor compensation and investor complaints; the public distribution of securities (so-called “public issues”); market abuses—especially insider dealing and market manipulation; conflicts of interest in diversified financial institutions; banking reform in the wake of the Vickers Report.

The unit will be of particular interest to those who wish to work in a financial centre whether as a solicitor, barrister, banker, journalist or regulator. Although a prior understanding/ appreciation of basic economic concepts may prove helpful, it is by no means essential.

The unit will complement students Banking law and possibly those studying Company law or Corporate Governance.

Intended learning outcomes

By the end of the unit, a successful student when presented with a set of facts you should be able to:

  • identify the key regulatory issues arising from those facts;
  • cite relevant case law and/or statutory authority;
  • explain how that authority applies to the issues raised by the facts, or how the facts may be distinguished
  • draw reasoned conclusions

By the end of the unit when presented with a proposition on a particular aspect of financial services law you should be able to:

  • present arguments for and against the proposition, citing relevant authorities as well as the views of other writers, and be able to assess the weight and credibility of any argument advanced;
  • examine relevant reform proposals;
  • draw reasoned conclusions as to whether you agree or disagree with the proposition advanced

The examination includes both problem type and essay type questions, designed to assess both whether students are able to understand and apply the law across the breadth of the syllabus, and whether they are able to think critically about it.

Teaching details

The contact hours for this unit will be 30 hours. This will usually take the format of: 8 lectures, 10 two-hour seminars and 2 assessment preparation and feedback sessions.

Assessment Details

Summative: a 2000 word essay (33%) will assess the candidate's ability to research a topic within the scope of this unit. The remaining Intended Learning Outcomes will be assessed in a 3 hour written examination (67%). Both assessments will assess all of the Intended Learning Outcomes for this unit in the context of topics selected by the examiners.

Formative: students should do one formative assessment (this will usually be 1 x 1500 word essay).

Reading and References

Supplied at the beginning of the academic year. There is simply no suitable book which address all or even the bulk of the issues covered in the unit and which is not either under-inclusive or over inclusive. In so far as there is a suitable book, the best is A Hudson, The Law of Finance (2nd edn Sweet & Maxwell, 2013).

Students are referred to a range of material, mostly via the University’s online resources (eg Westlaw/Heinonline etc).

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