A32102 PERMITTED: Student's own notes and course materials limited to one lever arch file. No calculator permitted in this examination. UNIVERSITYOF BIRMINGHAM Birmingham Law School LLB Law; LLB International Law and Globalisation; LLB Law with Business Studies; LLB Law with Criminology; LLB Law with French Law; LLB Law with German Law; LLB for Graduates; Certificate in English Law and Affiliate Students Banking and Financial Services Law 08 28900 Main Summer Examinations 2018 Time allowed: 2 hours All LLB students Answer TWO questions Certificate in English Law and Affiliate students Answer ONE question Write your answers in the booklet provided. All questions carry equal marks. If questions are divided into different parts, each part should be answered and carries equal marks unless otherwise indicated. Page 1 TURN OVER
PERMITTED: Student's own notes and course materials limited to one lever arch file. No calculator. 1. Has the action taken by the United Kingdom authorities in reaction to the financial crisis of approximately ten years ago led to a stronger framework for the regulation and supervision of the banking sector? In your answer, critically discuss the roles of the Prudential Regulation Authority and the Financial Conduct Authority and their approach to regulation. 2. Answer all parts (a), (b) and (c) The directors of Alpha plc have approached you for advice on the following issues: (a) First, they want to establish Alpha as a commercial bank which will accept deposits from the public through a branch network in the United Kingdom. They have specifically asked for information about what is involved in the process and whether or not they need to complete any specific formalities before they can start to accept deposits. AND (b) Second, there are presently three directors of Alpha, two of whom have many years' experience in the financial services industry much of which has been at a senior level. The third director has no experience of financial services but has significant expertise in computing and has a Master of Business Administration (MBA) from a leading business school. AND (c) Third, one of the experienced directors was previously involved in a company which became insolvent due to financial fraud. She was investigated by the Financial Conduct Authority and, although she received a warning about her conduct, no formal action was taken against her. A32102 Page 2 TURN OVER -... --
PERMITTED: Student's own notes and course materials limited to one lever arch file. No calculator. 3. At the time of the Northern Rock crisis there was almost no public awareness of the Financial Services Compensation Scheme (FSCS), but when the public became aware of the details of the Scheme the crisis actually intensified. What were the weaknesses in the FSCS at that time, and do you think that the current Scheme provides adequate and appropriate protection for bank depositors? 4. Critically discuss the Financial Ombudsman Service (FOS) and in particular consider whether it provides an adequate customer redress mechanism for the users of financial services which removes the need for complex