LLAW6245 Compliance in the Hong Kong securities industry

1.1 Course details

Course code: LLAW6245 / JDOC6245
Course name: Compliance in the Hong Kong Securities Industry
Programme offered under: LLM Programme / JD Programme
Semester: Second
Prerequisites / Co-requisites: Successful completion of LLAW6049 Securities regulation I, or demonstrated knowledge of the securities industry consistent with the scope of Securities regulation I.
Credit point value: 9 credits / 6 credits
Cap on student numbers: 30

1.2 Course description

The course will provide students with an understanding of the core roles, tasks, challenges and issues that a regulated intermediary must deal with when seeking to comply with applicable laws and regulations. While ‘compliance’ can readily be understood as an objective, much of the course will be concerned with the hurdles and issues that face compliance as a function when implemented in the complex matrix of regulatory requirements, business needs, management styles, and cultural and behavioural factors.

The course will commence with a brief recap of the regulatory framework for Hong Kong’s securities industry, including the overarching objectives of regulation, and an ad hoc review of some important failures that serve to highlight the relationship between compliance, regulations and the proper operation of markets.

With a view to giving a 360-degree review of the compliance function, the course will examine (a) the different roles of compliance in different types of organizations, (b) positioning the compliance function in the context of an organization’s culture, corporate governance practices, and ethics, (c) the proper role of compliance in the organization’s relationships with third parties (including customers, clients, counterparties, and regulators) and (d) compliance as a risk management function.

While the focus of the course will be on regulated intermediaries such as securities dealers, corporate finance advisers and asset managers, the course will also consider the position of issuers, particularly the challenges facing newly listed issuers. Regulatory codes issued by the Securities and Futures Commission as well as the ongoing requirements of the Listing Rules will be studied.

The development, purpose and important aspects of the in-house compliance manual will be examined in some detail. How policies and procedures should be tailored, applied to an organization’s operations, and reviewed and assessed will be considered as well as how a compliance manual is laid out and introduced into the front and back offices.

With a view to giving students closer contact with the realities of the compliance task, the course will make extensive use of speakers from the industry and the regulators. The format of each lecture will in general be comprised of two halves, the first being in a lecture format, the second being discussion-based and driven by small group work and question and answer discussions. Accordingly, student participation is expected and required to contribute to the learning context.

1.3 Course teachers

Name E-mail address Office Consultation
Course convenor Syren Johnstone syrenj@hku.hk CCT 513 By email

 

2.1 Course Learning Outcomes (CLOs) for this course

CLO 1  Describe and explain the relationship between the compliance function and the proper operation of intermediaries and markets

CLO 2  Understand the typical issues and hurdles that a compliance function must deal with in order to meet its primary objectives

CLO 3  Apply legal and regulatory requirements into an integrated compliance approach in different types of regulated intermediaries, and issuers

CLO 4  Understand the relationship between compliance, corporate governance, and corporate culture, and what may go wrong where these are wrongly aligned

CLO 5   Identify how dealings with third parties may impact on regulatory compliance Demonstrate an awareness of the business rationale for compliance

2.2 LLM Programme Learning Outcomes (PLOs)

PLO A On successful completion of the curriculum, students should be able to demonstrate a solid understanding of the body of legal knowledge and the capacity to conduct research on, critically analyse and evaluate legal principles, at a level required to meet the standards and expectations of the legal profession and the community at large.

PLO B On successful completion of the curriculum, students should be able to apply their legal knowledge and research skills to practical situations or theoretical challenges, and utilise their comparative understanding of the law and its political, social and cultural contexts to provide original and creative insights to legal problems.

PLO C On successful completion of the curriculum, students should be able to apply the knowledge, lawyering skills and legal reasoning to real and novel situations in life, with a view to resolving issues, problems and disputes within the legal parameters.

PLO D On successful completion of the curriculum, students should be able to demonstrate the ability to present effectively legal arguments in the professional context, as well as conveying and explaining the law effectively to lay clients and members of the larger community.

PLO E On successful completion of the curriculum, students should be able to appreciate the underlying moral values of the law and ethics in the profession and the legal system in the broad social, economic, political and cultural contexts: justice, the Rule of Law, and protection of rights and liberties which form the fabrics of a civilised society, and the importance of upholding these values by the legal community.

PLO F On successful completion of the curriculum, students should be able to develop a strong awareness of social issues and conditions, and utilise analytical abilities and rhetorical advocacy to provide leadership for the betterment of the human community.

2.3 Programme Learning Outcomes to be achieved in this course

PLO A PLO B PLO C PLO D PLO E PLO F
CLO 1  ✓
CLO 2  ✓  ✓
CLO 3  ✓
CLO 4
CLO 5

3.1 Assessment Summary

Assessment task Due date Weighting Feedback method* Course learning outcomes
Participation N/A 15% 1, 2, 3, 4, 5
Individual coursework TBC 25% 1, 2, 3, 4, 5
Take-home exam^ TBC 60% 1 1, 2, 3, 4, 5

^ Students are required to pass the exam to be eligible to pass the course.

  *Feedback method (to be determined by course teacher)
1 A general course report to be disseminated through Moodle
2 Individual feedback to be disseminated by email / through Moodle
3 Individual review meeting upon appointment
4 Group review meeting
5 In-class verbal feedback

3.2 Assessment Detail

To be advised by course convenor(s).

3.3 Grading Criteria

Please refer to the following link: http://www.law.hku.hk/course/grading-criteria/

 

4.1 Learning Activity Plan

Lecture: 3 hours / week for 12 teaching weeks
Private study time: 9.5 hours / week for 12 teaching weeks

Remarks: the normative student study load per credit unit is 25 ± 5 hours (ie. 150 ± 30 hours for a 6-credit course), which includes all learning activities and experiences within and outside of classroom, and any assessment task and examinations and associated preparations.

4.2 Details of Learning Activities

To be advised by course convenor(s).

5.1 Resources

Reading materials: Reading materials are posted on Moodle
Core reading list: TBA
Recommended reading list: TBA

5.2 Links

Please refer to the following link: http://www.law.hku.hk/course/learning-resources/

By the publication of the course profile online, the Faculty deems the student as having been notified of the course requirements.