This course provides an in-depth understanding of the international and UK regulatory frameworks governing the financial services industry. It covers the various models of regulation, including self-regulation, and explores the key elements of an effective regulatory approach, with a particular focus on the principles that guide global standards.

Course Overview

Chapter 1: The International & UK Regulatory Framework

This section begins by introducing the key regulatory frameworks that guide the global and UK financial markets. Topics include international regulatory bodies such as the Financial Stability Board (FSB), the Bank for International Settlements (BIS), and the International Organization of Securities Commissions (IOSCO). The course examines the jurisdiction and responsibilities of different regulators, focusing on the Financial Conduct Authority (FCA) and the Prudential Regulation Authority (PRA) within the UK context.

The course delves into the various approaches to regulation, including rules-based and principles-based models, and explores their practical applications within both international and UK frameworks. Special attention is given to the legal framework governing financial services, with a detailed analysis of key legislation and regulations.

Chapter 2: Regulatory Activities & Framework

In this section, the course examines the regulatory activities that authorised firms are subject to in the UK. This includes understanding the authorisation process, supervision, capital adequacy requirements, and the conduct of business rules that firms must adhere to. There is a focus on how regulators manage cross-border business and the role of supervisory colleges in overseeing global operations.

Chapter 3:The Compliance Function

This section provides a comprehensive overview of the compliance function within firms. It highlights the role of the Senior Management Function (SMF16) and the responsibilities of the compliance team. Topics covered include the key aspects of compliance, advisory duties, monitoring and surveillance, and the identification and assessment of compliance risks. The section also discusses the consequences of non-compliance and the importance of embedding compliance across the organisation.

Chapter 4: Dealing with Regulatory Authorities

This section focuses on the relationship between firms and regulatory authorities, providing practical guidance on how to manage this relationship. It covers how firms can align their business strategies with regulatory requirements, the regulatory implications of business decisions, and the importance of proactive engagement with regulators. The section also discusses the process of regulatory visits and handling breaches and confidential information.

Chapter 5: Ethics, Integrity, and Fairness

The final section of the course explores the importance of ethics and integrity within the financial services industry. It highlights the role of compliance in fostering ethical behaviour and decision-making, as well as creating an ethical culture within the firm. The section also covers corporate social responsibility (CSR) and the development of effective ethics training programmes. Market integrity and conflicts of interest policies are also discussed as integral to maintaining a fair and transparent financial system.