AG991 International Financial Markets and Banking

Workshop 8
Workshop Questions:

Why do we need financial regulation?

What is the role of the Financial Policy Committee (FPC) under the new regulatory
framework introduced in the UK?1

Question for self-study2:

What can be learnt from Gregoriou & Lhabitant (2009)?

Background reading (optional): HB ch 13 / A ch 15 / VM ch 6

Required reading *:

Llewellyn, D. (1999) ‘The Economic rationale for Financial Regulation’, FSA

Occasional Papers in Financial Regulation #1. Available at:
https://www.fep.up.pt/disciplinas/pgaf924/PGAF/Texto_2_David_Llewellyn.pdf

Financial Policy Committee:

https://www.bankofengland.co.uk/about/people/Financial%20Policy%20Committee
the page shows the members of the FPC and there is a box to click to get more
information on what the FPC does

Greorgiou, G.N., and Lhabitant, F.-S. (2009) ’Madoff: A Flock of Red Flags’, Journal of
Wealth Management 12(1), pp. 89-98.
https://papers.ssrn.com/sol3/papers.cfm?abstract_id=1335639

*links to these are also on myplace

1
New regulatory framework refers to the Financial Services Act 2012
(http://services.parliament.uk/bills/2012-13/financialservices.html) and Financial Services (Banking Reform)
Bill 2012-13 to 2013-14 (http://services.parliament.uk/bills/2013-14/financialservicesbankingreform.html).

2
Guidance on a solution approach will be posted on myplace at a later date.

© Juliane Thamm – University of Strathclyde