Module Details

Module Code: LAWS
Module Title: Derivatives and the Regulatory Environment
Title: Derivatives and the Regulatory Environment
Module Level:: 8
Credits:: 10
Module Coordinator: Janette Davies
Module Author:: Ailish O'Brien
Domains:  
Module Description: The aim of this module is to enable students to evaluate the regulatory environment in which Alternative Investment Funds operate and to account for and assess trading in derivative securities.
 
Learning Outcomes
On successful completion of this module the learner will be able to:
# Learning Outcome Description
LO1 Critically evaluate the regulatory and legal framework for Alternative Investment Funds in an Irish, EU and international context.
LO2 Analyse and account for trading in derivatives, including futures, options, forwards, swaps and short sales.
LO3 Assess the financial statements of a fund, incorporating relevant standards and legal considerations.
LO4 Critically appraise current developments in the international funds industry
LO5 Appraise governance practices of investment funds, in an international context.
Dependencies
Module Recommendations

This is prior learning (or a practical skill) that is recommended before enrolment in this module.
9298 ACCT Fund Accounting
Co-requisite Modules
No Co-requisite modules listed
Additional Requisite Information
No Co Requisites listed
 
Indicative Content
Introduction to Derivatives
Definition of derivatives, role of derivative securities, trading Over the Counter and Exchange-Traded, accounting for: daily appreciation/depreciation, trades and settlement of futures, options, short sales and swaps. Investment strategies.
Regulation/compliance
Role of regulation and regulators including The Central Bank of Ireland, The Irish Stock Exchange, The European Securities and Markets Authority and The Securities and Exchange Commission, laws for the fund industry and their impact on fund activities - MiFID, MIFIR, AIFMD. Categories of funds that can be established in Ireland, Global, European and UK, regulatory frameworks for investment funds.
Alternative Investment Funds
Categories of investors, investment strategies, fees, prospectus, risk management.
Financial statements of funds
Financial statements of funds, including relevant Accounting Standards and legal considerations.
Current developments in the fund sector
Responsible investments including sustainablel/green/Islamic investment funds. Developments in the technical regulatory environment such as distributed ledgers (blockchain), automation, data security,data governance.
Fund governance
Role of investment fund boards:risk management, composition of boards: knowledge, independence and diversity, investor engagement and stewardship, board accountability
Module Content & Assessment
Assessment Breakdown%
Continuous Assessment40.00%
Project30.00%
Practical30.00%

Assessments

Full Time

Continuous Assessment
Assessment Type Examination % of Total Mark 40
Timing n/a Learning Outcomes 2,3,4
Non-marked No
Assessment Description
Accounting for derivative instruments.
Evaluation of current developments in the fund sector.
Project
Assessment Type Project % of Total Mark 30
Timing n/a Learning Outcomes 1,2,4,5
Non-marked No
Assessment Description
Reflective essay
Practical
Assessment Type Practical/Skills Evaluation % of Total Mark 30
Timing n/a Learning Outcomes 1,3,4
Non-marked No
Assessment Description
Scenario based on the regulatory and legal framework and current developments in the fund sector.
No End of Module Formal Examination

Part Time

Continuous Assessment
Assessment Type Examination % of Total Mark 40
Timing n/a Learning Outcomes 2,3,4
Non-marked No
Assessment Description
Accounting for derivative instruments. Evaluation of current developments in the fund sector.
Project
Assessment Type Project % of Total Mark 30
Timing n/a Learning Outcomes 1,2,4,5
Non-marked No
Assessment Description
Reflective essay
Practical
Assessment Type Practical/Skills Evaluation % of Total Mark 30
Timing n/a Learning Outcomes 1,3,4
Non-marked No
Assessment Description
Scenario based on the regulatory and legal framework and current developments in the fund sector.
No End of Module Formal Examination
Reassessment Requirement
Exam Board
It is at the discretion of the Examination Board as to what the qualifying criteria are.

SETU Carlow Campus reserves the right to alter the nature and timings of assessment

 

Module Workload

Workload: Full Time
Workload Type Workload Category Contact Type Workload Description Frequency Average Weekly Learner Workload Hours
Independent Learning Non Contact Review class material, accounting exercises, research, group work. 15 Weeks per Stage 11.87 178
Lecture Contact Class lectures 12 Weeks per Stage 6.00 72
Total Weekly Contact Hours 6.00
Workload: Part Time
Workload Type Workload Category Contact Type Workload Description Frequency Average Weekly Learner Workload Hours
Independent Learning Non Contact Review class material, accounting exercises, research, group work. 15 Weeks per Stage 5.93 89
Lecture Contact Class lectures. 12 Weeks per Stage 3.00 36
Total Weekly Contact Hours 3.00
 
Module Resources
Recommended Book Resources
  • John. C. Hull. (2018), Fundamentals of Futures and Options Markets, 9th Edition. Pearson Educational Company, USA, [ISBN: 978935286563].
  • Jarrow, J.A. and Chatterjea, A.. (2019), An Introduction to Derivative Securities, Financial Markets, and Risk Management, 2nd Edition. World Scientific Publishing, USA, [ISBN: 978194465965].
  • Aron Gottesman. (2021), Derivatives Essentials: An Introduction to Forwards, Futures, Options and Swaps., 1st Edition. Wiley Publications, USA, [ISBN: 978111916349].
Supplementary Book Resources
  • John Hull. (2017), Options, Futures, and Other Derivatives, 10th Edition. Pearson Higher Education, USA, [ISBN: 978013447208].
  • Dirk Zetzsche. The Alternative Investment Fund Managers Directive, 3rd Edition. [ISBN: 9789403509105].
Recommended Article/Paper Resources
Other Resources
Discussion Note: