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 banking transparency and compliance services.

In particular, the student will be capable of:

• understanding the economic principles that justify the existence of finance regulation as well as the corresponding instruments and authorities;
• analyzing and evaluating procedures, laws, sectors and organizational areas as well as the risk priorities managed by the compliance function;
• interpreting the banking regulations about the transparency towards the customer, the managing of conflicts of interest and the protection of investor-saver.

Course contents

1. Finance regulation. Principles, goals, risk appetite system, authorities and supervisory institutions. Transaction costs, uncertainty, asymmetric information and agency costs.
2. Finance supervision. Basel 2 and capital adequacy, banking 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 investor-saver protection. The Markets in Financial Instruments Directive (MiFID).
5. Transparency and consumer protection of banking services and 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 exam is carried out in written form (1 hour of time), and is structured in two open-answer questions to be chosen between four.

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

Teaching tools

Teaching material (slides and discussion of case studies).

Office hours

See the website of Maurizio Mussoni