79560 - Financial Transparency and Compliance

Learning outcomes

At the end of the course, the student knows how to analyzing and interpreting the banking and financial regulation, with particular reference to disclosure and compliance.

In particular, the student will be capable of:

• understanding the economic principles that justify the existence of banking and financial regulation as well as the corresponding rules and authorities;
• analyzing and evaluating procedures, laws, operational and organizational areas as well as the risk priorities managed by the compliance function;
• interpreting the banking regulations about disclosure and transparency towards the customer, conflicts of interest and investors-savers protection.

Course contents

1. Finance regulation. Principles, goals, risk appetite framework (RAF), authorities and supervisory institutions. Uncertainty, transaction costs, asymmetric information and agency costs.
2. Financial supervision. Basel 2 and capital adequacy, corporate governance and internal control system: risk management, compliance function and internal auditing.
3. Other laws and areas managed by the compliance function. Anti-usury law, anti-money laundering and counter-terrorist financing legislation, legal liability of legal persons (Legislative Decree 231/01), privacy and protection of personal data.
4. Financial instruments markets, securities brokerage, and investors-savers protection. The Markets in Financial Instruments Directive (MiFID).
5. Disclosure, transparency and consumer protection in banking services. Conflicts of interest in financial intermediation.

Readings/Bibliography

Nadotti L., C. Porzio and D. Previati, Economia degli intermediari finanziari, McGraw-Hill, 2017.

Any additional material with respect to the main textbook will be communicated at the beginning of the course, and made available online within the course's teaching material.

 

Optional readings

• Onado M., Economia e regolamentazione del sistema finanziario, Il Mulino, 2016.

• Saunders A., M.M. Cornett, M. Anolli and B. Alemanni, Economia degli intermediari finanziari, McGraw-Hill, 2015.

• Dellarosa E. and R. Razzante, Il nuovo sistema dei controlli interni della banca. Riprogettare il sistema dopo Basilea 2, Mifid e compliance, Franco Angeli, 2010.

• Galanti E. (edited by), Diritto delle banche e degli intermediari finanziari, CEDAM, 2008.

• Amorosino S. (edited by), Manuale di diritto del mercato finanziario, Giuffrè, 2014.

• Capriglione F. (edited by), L’ordinamento finanziario italiano, CEDAM, 2010.

Teaching methods

In-class lectures and discussion of case studies.

Assessment methods

The written exam aims at verifying the understanding of the theories exposed in class and their application to case studies.

The exam is carried out in written form (1 hour of time), and is structured in two "open questions" to be chosen between four questions, and to pass the exams students must obtain a sufficient grade (18/30) for both questions.

It is not possible to bring books, personal notes or electronic devices in the exam. Registration for the exam is compulsory, and students have to register through AlmaEsami [https://almaesami.unibo.it/almaesami/welcome.htm].

 

Teaching tools

Teaching material (slides and discussion of case studies).

The slides can be downloaded by clicking on "Teaching materiale" or directly from the "Insegnamenti online" website (https://iol.unibo.it).

 

Office hours

See the website of Maurizio Mussoni