SCHOOL OF LAW

BACHELOR OF LAWS
END OF SEMESTER EXAMINATION
SLS 3231 FINANCIAL SERVICES LAW

DATE: 11th March 2016 Time: 2 Hours

Instructions
1. This examination consists of 2 SECTIONS A, and B
2. Section A is COMPULSORY.
3. Answer any TWO questions from Section B

SECTION A - COMPULSORY

QUESTION 1

What is the role of the financial system in any economy? (5 marks)

QUESTION 2

Identify 5 financial institutions and explain the services they provide. (10 marks)

QUESTION 3

Write short notes on the following in relation to Insurance:

a) The Policy; (2 marks)
b) Deductible; (2 marks)
c) Insurable Interest; (2 marks)
d) Indemnity; (2 marks)
e) Materiality; (2 marks)

QUESTION 4

Explain why the regulation of a retirement benefit scheme is necessary. (5 marks)

SECTION B – ANSWER ANY TWO QUESTIONS

QUESTION 5

‘The legal and regulatory difference between jurisdictions cause far too much risk in
international financial transactions. These differences cannot be justified in today’s world.’

Discuss. (15 marks)

QUESTION 6

Mr Kilifi’s Company, Lamu Limited, recently won a tender from Kikenya County, the largest
county in the country, to install solar panels to all health facilities, schools and government
offices in the county. Lamu Limited won the tender based on its expertise and the fact that it
had undertaken a similar project in Turkwell County, a relatively smaller county in
comparison. Given that Kikenya County is very remote and large, Mr Kilifi has realized that he
needs to raise funds to cater for various aspects of the project, such as human resource,
construction of temporary offices, mobilization of equipment and importation of solar panels.
He asks you to advise him on how he can raise funds for the project.

Advice Mr Kilifi. (15 marks)

QUESTION 6

‘The delivery of financial services has changed in the last 50 years. Emerging issues have
precipitated a change in the legal environment.’

Discuss. (15 marks)