| CODE | ISR0002 | |||||||||
| TITLE | Regulation, Compliance, and Risk Management | |||||||||
| 今日黑料 LEVEL | 00 - Mod Pre-Tert, Foundation, Proficiency & DegreePlus | |||||||||
| EQF/MQF LEVEL | 4 | |||||||||
| ECTS CREDITS | 10 | |||||||||
| DEPARTMENT | Insurance and Risk Management | |||||||||
| DESCRIPTION | This study-unit introduces learners to the legal, regulatory, compliance, and risk management frameworks that govern the financial services sector and support its integrity, stability, and accountability. It provides a structured overview of the principal regulatory institutions, supervisory expectations, and compliance obligations that apply to financial services organisations operating within the Maltese and wider European context. The study-unit describes how regulation helps to protect consumers, maintain market confidence, prevent financial crime, and promote sound governance and responsible business conduct across the sector. Learners will be introduced to key areas of regulatory and compliance practice, including anti-money laundering and countering the financing of terrorism, know your customer and customer due diligence procedures, sanctions screening, data protection, market abuse, whistleblowing, consumer protection, and corporate governance. The study-unit also outlines the day-to-day work of compliance officers, regulatory authorities, and internal control functions in helping institutions stay within established legal and ethical boundaries. Through this, learners will gain a basic understanding of how regulatory requirements are translated into day-to-day procedures, oversight processes, and organisational responsibilities.In parallel, the study-unit provides learners with a foundation in the main categories of risk affecting financial institutions, including operational risk, credit risk, market risk, liquidity risk, reputational risk, outsourcing risk, and risks arising from business disruption, fraud, and regulatory failure. It introduces the basic steps involved in identifying, monitoring, and managing risks, and explains why these steps help support institutional resilience. The study-unit also introduces learners to concepts such as business continuity, stress testing, crisis management, regulatory capital, and the growing use of regulatory technology in compliance and risk functions. Overall, this study-unit is designed to develop learners' understanding of the control environment within financial services and to build awareness of the responsibilities, standards, and professional behaviours required in regulated settings. It provides essential underpinning knowledge for further study in financial regulation, governance, and risk, while also equipping learners with the awareness needed to take part responsibly in entry-level financial services roles. Study-Unit Aims: The aim of this study-unit is to provide learners with an introduction to the regulatory, compliance, and risk management environment within which financial services institutions operate. The study-unit is designed to develop foundational knowledge of the principal legal, supervisory, and governance frameworks that shape the conduct of financial services business in Malta and within the broader European context. It aims to familiarise learners with the roles of regulatory authorities, compliance functions, and internal control functions in supporting market integrity, consumer protection, financial stability, and lawful business practice.The study-unit further aims to develop learners' understanding of the compliance obligations placed on financial institutions, including requirements relating to anti-money laundering, countering the financing of terrorism, customer due diligence, sanctions screening, data protection, market conduct, whistleblowing, and corporate governance. In doing so, it seeks to build an awareness of the importance of ethical behaviour, accountability, and following internal policies and external regulatory standards within professional financial services environments.In addition, the study-unit aims to introduce learners to the principal categories of risk encountered in financial services, including operational, credit, market, liquidity, reputational, and outsourcing risk, and to provide a basic understanding of the steps through which such risks are identified, monitored, and managed. The study-unit also aims to strengthen learners' awareness of the role of business continuity planning, fraud prevention, crisis management, and regulatory technology in supporting resilient and well-controlled institutions.Overall, this study-unit aims to equip learners with the regulatory awareness, compliance literacy, and risk management understanding necessary for progression within the programme and for responsible participation in entry-level roles within regulated financial services environments. Learning Outcomes: 1. Knowledge & Understanding: By the end of the study-unit the student will be able to: - Explain the purpose and importance of regulation, compliance, and risk management within the financial services sector; - Identify the principal regulatory and supervisory bodies relevant to financial services in Malta and the wider European context; - Describe the role of key regulatory frameworks, directives, and standards in governing financial institutions and financial services activity; - Explain the purpose of anti-money laundering and countering the financing of terrorism measures within regulated entities; - Describe the key principles and procedures associated with know your customer and customer due diligence requirements; - Recognise the importance of sanctions screening, politically exposed persons screening, and transaction monitoring within compliance processes; - Describe the role of data protection, market conduct rules, whistleblowing arrangements, and corporate governance in promoting sound and ethical business practice; - Distinguish between the principal categories of risk encountered in financial services, including operational risk, credit risk, market risk, liquidity risk, reputational risk, and outsourcing risk; - Describe the importance of internal controls, regulatory capital, business continuity planning, fraud prevention, and crisis management in supporting institutional resilience; and - Describe how regulatory compliance, risk management, consumer protection, and financial stability are connected. 2. Skills: By the end of the study-unit the student will be able to: - Distinguish between the basic responsibilities of regulatory authorities, compliance functions, risk functions, and internal control functions within financial services organisations; - Identify basic compliance obligations arising in routine financial services scenarios; - Check simple customer identification and due diligence documentation for completeness using given criteria; - Recognise potential indicators of suspicious, unusual, or higher-risk transactions that require escalation or further review; - Distinguish between different categories of financial and non-financial risk in simple case-based situations; - Apply basic risk awareness, with guidance, when considering operational, credit, market, and conduct-related issues affecting financial institutions; - Use appropriate compliance and risk terminology when describing regulatory responsibilities and internal procedures; - Follow basic escalation and reporting procedures in relation to compliance breaches, suspicious activity, or control weaknesses; - Organise information relevant to a simple compliance review or introductory risk-awareness exercise; and - Apply basic ethical principles, with guidance, to straightforward compliance and risk management scenarios. Main Text/s and any supplementary readings: |
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| ADDITIONAL NOTES | Pre-requisite Qualifications: Not less than four passes in the Secondary Education Certificate Examination at Grade 5 or better, or at SEC Level 3, in Mathematics, English Language and Maltese or any other language that satisfies Regulation 13 of the Admissions Regulations 2016: Maltese as a Requirement, together with any other subject (or one which you may deem appropriate). | |||||||||
| STUDY-UNIT TYPE | Lecture | |||||||||
| METHOD OF ASSESSMENT |
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The University makes every effort to ensure that the published Courses Plans, Programmes of Study and Study-Unit information are complete and up-to-date at the time of publication. The University reserves the right to make changes in case errors are detected after publication.
The availability of optional units may be subject to timetabling constraints. Units not attracting a sufficient number of registrations may be withdrawn without notice. It should be noted that all the information in the description above applies to study-units available during the academic year 2026/7. It may be subject to change in subsequent years. |
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