Study-Unit Description

Study-Unit Description


CODE INS2014

 
TITLE Regulations and Compliance Management

 
LEVEL 02 - Years 2, 3 in Modular Undergraduate Course

 
ECTS CREDITS 2

 
DEPARTMENT Insurance

 
DESCRIPTION This study-unit provides a comprehensive treatment of regulation governing compliance requirements such as Prevention of Money Laundering, the Solvency II Directive and the Insurance Distribution Directive.

It will also delve into other broader governance and risk initiatives that have been promulgated by regulation and that are currently under the regulatory spotlight. These include, conduct risk management, the role of gatekeepers and the lines of defense. The subject will be tackled from both a practical and theoretical perspective.

Study-unit Aims:

The aim of this unit is to familiarize students with the compliance needs of insurance undertakings as dictated by regulation. The main objectives of this unit are to provide students with an appreciation of the relationship between good corporate governance, compliance and risk management, an understanding of the importance of the compliance function, and knowledge of the operation of reliable and effective internal controls to manage and minimise the risk of material compliance failures.

More broadly, the aim of this unit is to provide students with an appreciation of the evolving regulatory tools and approaches, including the shift from a rules-based to a principles-based approach as well as the more intrusive mindset that is seeping through the regulators' supervisory and enforcement agendas.

Learning Outcomes:

1. Knowledge & Understanding
By the end of the study-unit the student will be able to:

a) identify the different lines of governance and accountability within an organisation;
b) define the interactions between different stakeholders (internal and external to a company);
c) plan the evolving role of regulation and compliance management in its more intrusive and complex framework.

In general, following completion of the unit, students will be able to define the regulatory framework governing risk and compliance, the objectives of European and Maltese authorities in regulating key areas of concern in relation to these matters, as well as a broad plan of the direction of travel of the regulatory framework over the years to come.

They will be also able to examine and discuss Prevention of Money Laundering, the Importance of Transparency, Conflict of Interest and its effect, Standards, The Rule of Law, Data Protection, Gate-keeping and Ethics amongst other areas.

2. Skills
By the end of the study-unit the student will be able to:

- evaluate the impact of regulation on the compliance requirements of an insurance entity;
- interpret regulatory requirements on governance, risk and compliance in managing operational risk;
- interpret developments in the regulatory regime in connection with compliance matters.

Main Text/s and any supplementary readings:

Suggested Text Book

- Baldwin R, Cave M and Lodge M (eds),2010. The Oxford Handbook of Regulation (Oxford University Press).
- Brunnermeier M et al, 2009.‘The Fundamental Principles of Financial Regulation’ Geneva Reports on the World Economy 11.
- EIOPA, Guidelines on System of Governance. 2015. available at
https://eiopa.europa.eu/GuidelinesSII/EIOPA-BoS-14-253_GL%20on%20system%20of%20governance.pdf
- Llewellyn D, 1999. ‘The case for financial regulation’1 Journal of International Financial Markets 153.
- MacNeil I, 2015. ‘Rethinking conduct regulation’ 30 Journal of International Banking and Financial Law 413.
- Moloney N, Ferran E and Payne J (eds),2015. The Oxford Handbook of Financial Regulation (Oxford University Press).
- Siclari D., 2016. The New Anti-Money Laundering Law: First Perspectives on the Fourth European Union Directive.

 
STUDY-UNIT TYPE Lecture and Tutorial

 
METHOD OF ASSESSMENT
Assessment Component/s Assessment Due Resit Availability Weighting
Examination (1 Hour) SEM1 Yes 100%

 
LECTURER/S Simon Grima (Co-ord.)
Diane Vella

 
The University makes every effort to ensure that the published Courses Plans, Programmes of Study and Study-Unit information are complete and up-to-date at the time of publication. The University reserves the right to make changes in case errors are detected after publication.
The availability of optional units may be subject to timetabling constraints.
Units not attracting a sufficient number of registrations may be withdrawn without notice.
It should be noted that all the information in the study-unit description above applies to the academic year 2019/0, if study-unit is available during this academic year, and may be subject to change in subsequent years.

https://www.um.edu.mt/course/studyunit