Financial Markets Law and Regulation
Module title | Financial Markets Law and Regulation |
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Module code | LAWM112 |
Academic year | 2020/1 |
Credits | 30 |
Module staff | Dr Joseph Lee (Convenor) |
Duration: Term | 1 | 2 | 3 |
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Duration: Weeks | 11 |
Number students taking module (anticipated) | 30 |
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Module description
This module analyses the legal rights of parties to financial and investment contracts and the UK regulatory system governing the entirety of investment regulation (that is, everything that is neither banking nor insurance) by the Financial Conduct Authority. This module is essential to the practice of finance law in City law firms. It draws on the root principles in the EU Markets in Financial Instruments Directive and other regulation, as implemented in the UK (which remains Europe’s largest investment market). In this module you will cover the conduct of business regulation, financial promotion, and the effect of the global financial crisis. You will analyse problems in the creation of contracts, and liability for wrongs and for breaches of fiduciary duty. You will also analyse mainstream investment, collective investment schemes, and social investment.
Module aims - intentions of the module
The underlying aim of this module is to identify and explore the fundamental principles of financial regulation relating to the selling of financial instruments and investment products as identified by statute (thus excluding deposit-taking banking business). The module covers international, EU and UK regulatory initiatives. Among the regulatory fields which are covered are: conduct of business, financial promotion and investor protection more generally; market abuse; issues of securities; and capital maintenance.
The more detailed aims of this module are therefore for you:
1: to analyse the principles of the law of finance as they relate to the overlap between norms of financial regulation and norms of substantive law;
2: to analyse the law governing the creation of contracts in high-volume financial markets between traders and between traders and retail customers;
3. to analyse the liabilities of financial institutions for wrongs and breaches of fiduciary duty in financial transactions;
4: to analyse the efficacy of the regulations in the FCA Handbook in the context of investment business;
5: to explore the policies underpinning the reforms to EU and UK regulatory structures in the wake of the financial crisis of 2007-09 and thereafter; and
6: to develop a critical understanding of standard market practice and the issues with transacting in compliance with financial regulation.
Intended Learning Outcomes (ILOs)
ILO: Module-specific skills
On successfully completing the module you will be able to...
- 1. Demonstrate detailed knowledge of principles of financial regulation and of the substantive law relating to investment contracts
- 2. Evaluate critically the effectiveness of financial regulation in the context of investment business
- 3. Demonstrate in-depth knowledge of principles of common law and equity in relation to investment business
ILO: Discipline-specific skills
On successfully completing the module you will be able to...
- 4. Apply principles of the common law and equity to factual problems
- 5. Analyse critically the nature and objectives of the law in relation to investment business
ILO: Personal and key skills
On successfully completing the module you will be able to...
- 6. Analyse issues arising from the inter-action of principles of substantive law and financial regulation in a specific commercial context
- 7. Exercise critical judgment in relation to commercial issues
Syllabus plan
Whilst the module’s precise content may vary from year to year, it is envisaged that the syllabus will cover some or all of the following topics:
Section 1: Sources of financial regulation
Section 2: The Financial Conduct Authority regime under the Financial Services and Markets Act 2000
Section 3: Conduct of Business regulation
Section 4: Issues in the creation of contracts
Section 5: The nature of financial contracts
Section 6: The liability of financial institutions at common law
Section 7: The liability of financial institutions in equity
Section 8: Taking security and recovering property in financial contracts
Section 9: The nature of investment entities
Section 10: Communal investment schemes
Section 11: Unit trusts and collective investment schemes
Learning activities and teaching methods (given in hours of study time)
Scheduled Learning and Teaching Activities | Guided independent study | Placement / study abroad |
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33 | 267 | 0 |
Details of learning activities and teaching methods
Category | Hours of study time | Description |
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Scheduled Learning and Teaching Activities | 33 hours | 11 x 3 hour seminars. Lecturer-led, three-hour seminars (total of 11). Students will be expected to make at least one presentation during the course. |
Guided Independent Study | 150 hours | Preparation for seminars |
Guided Independent Study | 8 hours | Preparation for and writing of formative essay |
Guided independent study | 109 hours | Preparation for and writing of summative essays |
Formative assessment
Form of assessment | Size of the assessment (eg length / duration) | ILOs assessed | Feedback method |
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Written essay | 1,500 words | 1-7 | Written feedback; additional oral feedback available on request |
Summative assessment (% of credit)
Coursework | Written exams | Practical exams |
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100 | 0 | 0 |
Details of summative assessment
Form of assessment | % of credit | Size of the assessment (eg length / duration) | ILOs assessed | Feedback method |
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Essay | 100 | 7,500 words | 1-7 | The School of Law standard |
Details of re-assessment (where required by referral or deferral)
Original form of assessment | Form of re-assessment | ILOs re-assessed | Timescale for re-assessment |
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Essay | Essay (7,500 words) | 1-7 | August/September reassessment period |
Indicative learning resources - Basic reading
Module textbook:
Niamh Moloney, EU Securities and Financial Markets Regulation (OUP, 2016)
Eilis Ferran & Look Chan Ho, Principles of Corporate Finance Law ( OUP 2014)
Collin Bamford, Principles of International Financial Law (OUP 2015)
Other textbooks:
Ellinger, Lomnicka and Hare, Modern Banking Law (5th ed., Oxford, 2010).
R Cranston, Principles of Banking Law (Oxford, 2002).
Library reference:
W Blair and G Walker (eds), Financial Services Law (2e, OUP, 2009)
W Blair and G Walker (eds), Financial Markets and Exchanges Law (1e, OUP, 2005)
Butterworths Banking Law Encyclopaedia, (LexisNexis, looseleaf) covers a part only of the module.
Financial Services Law Encyclopedia, (Sweet & Maxwell, looseleaf), annotated statutes only.
Alastair Hudson, The Law on Financial Derivatives (5th ed., Sweet & Maxwell, 2012)
Alastair Hudson, Securities Law (2nd ed, Sweet & Maxwell, 2013)
Alastair Hudson, The Law of Finance (2nd ed., Sweet & Maxwell, 2013)
Indicative learning resources - Web based and electronic resources
Journal articles, case law and statutes available through the ordinary legal databases. FCA financial regulation all available free on-line via www.fca.gov.uk.
Credit value | 30 |
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Module ECTS | 15 |
Module pre-requisites | None |
Module co-requisites | None |
NQF level (module) | 7 |
Available as distance learning? | No |
Origin date | 24/07/2017 |
Last revision date | 26/08/2020 |