Global Issues for the Finance Professional [PAM100]

Penalties for exceeding the word count

1. There are penalties for exceeding the specified word count.

2. For section 1 your submission should be between 1,500 and 2,000 words.

You may use less than 1,500 words but in so doing you may be penalizing yourself as it is likely to be challenging to respond to Section 1's requirement in less than 1,500 words.

3. You MUST state an accurate word count (excluding the list of references) at the end of Section 1.

4. If you submit more than 2,000 words for Section 1, the following penalties apply:
- up to 10% more than 2,000 words your mark for Section 1 will be reduced by 5 marks;
- for more than 10% than 2,000 words you will receive zero marks for Section 1.

5. For Section 2 your submission should be between 1,500 and 2,000 words. You may use less than 1,500 words but in so doing you may be penalizing yourself as it is likely to be challenging to respond to Section 2's requirement in less than 1,500 words.

6. You MUST state an accurate word count (excluding the list of references) at the end of Section 2.

7. If you submit more than 2,000 words, the following penalties apply:
- up to 10% more than 2,000 words your mark for Section 2 will be reduced by 5 marks;
- for more than 10% more than 2,000 words you will receive zero marks for Section 2.

4. Guidelines regarding criteria for achieving particular grade boundaries

Appendix A details the criteria for achieving particular grades of marks, criteria being based on the University of London's MPAcc Programme Regulations 2016-17 for Professional Accountancy Pathway 2 (MSc). The grade standards represented by the mark ranges are:

5. Tasks and requirements

To be submitted by Monday 24th October 2016 by 1pm (1300 hours) UTC There are two sections. Submit both within one document.

Section 1

This section is weighted at 50% of marks available for this coursework assignment, contributing a maximum of 12.5% of the total marks available for this module.

There is one requirement in this section. Your response to the requirement must be between 1,500 and 2,000 words. Penalties apply for exceeding the word count. No formal penalties apply for using fewer than 1,500 words but in so doing you may be penalizing yourself as it is likely to be challenging to respond to the requirement in less than 1,500 words.

Context and Requirement

Context

The series of Basel III regulatory reforms may be viewed as a series of sets of intentions. Intentions are not always achieved. The latest report of G20 leaders (dated August 2016: http://www.bis.org/bcbs/publ/d377.pdf ) on the implementation of Basel III regulatory reforms reveals that despite the efforts of banks to build a strong capital buffer, challenges remain.

Another report (http://uk.reuters.com/article/china-bonds-tlac-idUKL3N17S1ME ) reveals serious challenges to aspects of the China banking industry.

Required

Identify and evaluate arguments in favour of and against capital requirements for the banking industry. In so doing set your considerations against the backdrops of specific capital requirements, the cost-benefit trade-offs relating to banking regulations, the business model(s) of banks (especially commercial and investment banks), and the impact of banking decisions on systemic risk. You should illuminate and enrich your considerations by drawing on, as appropriate, relevant examples and illustrations.

In responding to this requirement you should certainly refer to relevant Topic 10 study materials, and other relevant Theme 3 materials as appropriate. You are encouraged to also draw upon other materials, as appropriate, from journal articles and/or business reports and/or news reports.

There is one requirement in this section. Your response to the requirement must be between 1,500 and 2,000 words. Penalties apply for exceeding the word count. No formal penalties apply for using fewer than 1,500 words but in so doing you may be penalizing yourself as it is likely to be challenging to respond to the requirement in less than 1,500 words.

There is one requirement in this section. Choose from Section 2 Option A and Section 2 Option

B. Answer only one of the two options in this Section. (You must also answer Section 1.) Your response to the requirement must be between 1,500 and 2,000 words. Penalties apply for exceeding the word count. No formal penalties apply for using fewer than 1,500 words but in so doing you may be penalizing yourself as it is likely to be challenging to respond to the requirement in less than 1,500 words.

Section 2 Option A Context and Requirement Context

Given on-going global and domestic changes in the economic environment, perceptions of risk and associated required rates of returns will invariably also change. In June 2016 the UK voted in a referendum to leave the European Union. (This referendum is often referred to as the Brexit referendum.) This has resulted in, perhaps predictably, impacts on perceptions of risk and associated required rates of returns, certainly in the UK, in the wider Europe and, indeed, globally, requiring central banks to act in particular ways. Such impacts have implications for pension funds and pensioners, not least in the UK. Illustratively, one report which addresses consequences is: Kao, J. S. and Authers, J., 2016. Capital Markets, Pensions and bonds: the problem explained, Bond mathematics and the scale of pension deficits [online]. London: The Financial Times. Available from: http://ig.ft.com/sites/pensions-interestratesexplainer [Accessed 1 September 2016].

Required

Building upon the ideas, principles and issues relating to risk and required rates of return in topics 11, 12 and 13, undertake further independent research to enable you to analyse the impact of the Brexit referendum on pension funds and pensioners in the UK. Your analysis should take account of:

- A description and explanation of the major actions taken by the Bank of England in the weeks and months following the UK's decision to leave the European Union.
- An evaluation of the impact of the Bank of England's actions on the UK pension industry, reflecting i) the obligations of pension funds and ii) required rates of return for pension funds to meet those obligations.
- With reference to investing in real assets, the impact of Brexit on the required rates of return for pensioners to achieve and maintain an acceptable standard of living.
In responding to this requirement you should certainly refer to relevant Theme 4 study materials, but as this requirement involves further independent research building upon the ideas, principles and issues relating to risk and required rates of return in topics 11, 12 and 13, you should also draw upon other relevant materials.

Section 2 Option B

Context and Requirement
Context

Given on-going global and domestic changes in the economic environment, perceptions of risk and associated required rates of returns will invariably also change. In June 2016 the UK voted in a referendum to leave the European Union. (This referendum is often referred to as the Brexit referendum.) This has resulted in, perhaps predictably, impacts on perceptions of risk and associated required rates of returns, certainly in the UK, in the wider Europe and, indeed, globally, requiring central banks to act in particular ways. Such impacts have implications for capital markets around the world, with consequences for national economies, organisations in those national economies, and citizens working in those organisations and/or residing in those economies.

Illustratively, one report which addresses consequences is: Kao, J. S. and Authers, J., 2016. Capital Markets, Pensions and bonds: the problem explained, Bond mathematics and the scale of pension deficits [online].

London: The Financial Times. Available from: http://ig.ft.com/sites/pensions-interestratesexplainer [Accessed 1 September 2016].

Another report looking at consequences is: Martin, W., 2016. Africa will be the secret victim of Brexit [online]. Business Insider. Available from: http://uk.businessinsider.com/barclays- research-the-impact-of-brexit-on-african-economy-2016-7 [Accessed 27 September 2016].

Another report looking at consequences is: Thompson, J., 2016. How could Brexit affect Asia? [online]. London: FT.com. Available from: https://www.ft.com/content/c0679ee0-4d7b-3918- 94c2-1833bb3ef327 [Accessed 27 September 2016].

There are numerous other reports and articles available examining the impact of Brexit in other regions around the world.
Required

Building upon the ideas, principles and issues relating to risk and required rates of return in topics 11, 12 and 13, undertake further independent research to enable you to analyse the impact of the Brexit referendum on global capital markets. You should certainly do so in the global context. Thereafter evaluate the consequences of impacts on global capital markets for a country of your choice and an organisation of your own choice. It would be appropriate for the organisation you select to be either located in the country you choose or to have a range of commercial and/or other dealings with the country you choose. Your analysis should take account of:

- A description and explanation of the impact of the Brexit referendum on global capital markets in the weeks and months following the UK's decision to leave the European Union.

- An evaluation of the consequences of impacts on global capital markets for a country of your choice and an organisation of your own choice.

- With reference to investing in real assets, the impact of Brexit on the required rates of return for either i) pensioners to achieve and maintain an acceptable standard of living in the country you have selected, or ii) the organisation you have selected.

In responding to this requirement you should certainly refer to relevant Theme 4 study materials, but as this requirement involves further independent research building upon the ideas, principles and issues relating to risk and required rates of return in topics 11, 12 and 13, you should also draw upon other relevant materials.