Answer THREE questions from SIX.
Question 1:
Critically examine the major regulatory models from around the world. Critically comment
on the regulatory structure in the UK used in the past and followed now.
Question 2:
Critically discuss the rationale for the existence of regulations as established in
literature. Also explain your personal view on whether regulation facilitates or
impedes financial market functioning.
Question 3:
Critically discuss the types of behaviour that constitute market abuse. Provide
suggestions on what actions the Compliance Officer may take to minimize risk to their firm.
Question 4:
Critically discuss the case of the failure of Northern Rock. Specifically discuss the role of
their business model and the weaknesses in credit risk agencies and banking
regulations in causing the failure. What action would you recommend on the part of
banks to avoid such a scenario in the future.
Question 5:
Critically discuss the role of compliance officers in an organization. Elaborate on the
responsibilities of a compliance officer and also the characteristics of a good
compliance regime.
3
Question 6:
Critically examine the below case study and discuss the main issues. Discuss your
approach as a compliance officer.
“You undertake a periodic review, and peruse a fact find document completed by
Anne, to whom your bank acts as an investment adviser. The fact find indicates that Anne
has a very low risk appetite. However, her account manager has bought a number of
AIM listed shares for her. You question the Account Manager, who says that he advised
Anne against buying the shares, but she insisted that the purchase should be made.”