Offered
Not offered in 2008
Synopsis
Financial scandals and corporate greed (ENRON, WorldCom and HIH and One-Tel in Australia) have raised pressing questions of ethics in markets and also the sustainability of the international financial system. They have also raised questions of the effectiveness of financial regulation and regulatory agencies.
In Australia, the Financial Reform Act 2001 is in the process of being implemented. It is the most thorough reform of financial regulation in the country's history.
This option provides a timely analysis of the new law and regulatory policies. It does so in the context of studying the regulator (ASIC) the markets (ASX) and financial firms. Context is partly supplied by a visit, if possible, to the trading floor of a leading market intermediary.
As well the course considers issues for investors and regulators in high tech internationalised markets, of which the Australian markets are part. It focuses on the nature of financial regulation and leading regulatory techniques e.g. disclosure, licensing, market misconduct, powers of investigation and enforcement. The course gives special attention to current regulatory problems and developing regulatory policy: market and regulatory convergence; protection of financial consumers; the tension between criminal law and more informal approaches to regulation; forces driving harmonisation of international and competing national systems; and the role of ethical arguments as justifications for regulation.
Objectives
To study the context of the regulation of financial products and markets, including the institutions and practices of the market. Satisfying this objective will include a visit, where possible, to the trading floor of one of the leading market intermediaries; To develop an understanding of the arguments for financial regulation, the main regulatroy techniques adopted (eg. disclosure, ownership and control, regulation of intermediaries) and the issues of law and policy in the area; To enrich the study of relevant regulatory rules and policy by the introduction of interdisciplinary and comparative material and policy which govern markets in collective investments.
Assessment
Short written reports of market visit: 10%
Prospectus due diligence exercise: 10%
Research essay (3000 words): 40%
Examination (2 hours writing time plus 10 minutes reading time): 40%
Contact hours
Three hours of lectures per week
Prerequisites
LAW1100 OR LAW1101 and LAW1102 or LAW1104; LAW4171
