{"id":4178,"date":"2020-09-18T22:30:38","date_gmt":"2020-09-18T21:30:38","guid":{"rendered":"https:\/\/thefinancialeducation.co.uk\/?p=4178"},"modified":"2023-12-19T11:56:38","modified_gmt":"2023-12-19T11:56:38","slug":"211bir-session-1","status":"publish","type":"post","link":"https:\/\/thefinancialeducation.co.uk\/index.php\/2020\/09\/18\/211bir-session-1\/","title":{"rendered":"211BIR: Session 1"},"content":{"rendered":"<style>.wp-block-kadence-advancedheading.kt-adv-heading4178_644410-27, .wp-block-kadence-advancedheading.kt-adv-heading4178_644410-27[data-kb-block=\"kb-adv-heading4178_644410-27\"]{font-weight:normal;font-style:normal;}.wp-block-kadence-advancedheading.kt-adv-heading4178_644410-27 mark.kt-highlight, .wp-block-kadence-advancedheading.kt-adv-heading4178_644410-27[data-kb-block=\"kb-adv-heading4178_644410-27\"] mark.kt-highlight{font-weight:normal;font-style:normal;color:#f76a0c;-webkit-box-decoration-break:clone;box-decoration-break:clone;padding-top:0px;padding-right:0px;padding-bottom:0px;padding-left:0px;}<\/style>\n<h2 class=\"kt-adv-heading4178_644410-27 wp-block-kadence-advancedheading\" data-kb-block=\"kb-adv-heading4178_644410-27\"><abbr class='c2c-text-hover' title='a large company or group of companies that is controlled together as a single organization.'>Corporate<\/abbr> Governance and Risk<\/h2>\n\n\n<div class=\"wp-block-ub-content-toggle wp-block-ub-content-toggle-block\" id=\"ub-content-toggle-block-e45d5de7-dfb9-46e2-b373-4c74c834578e\" data-mobilecollapse=\"false\" data-desktopcollapse=\"true\" data-preventcollapse=\"false\" data-showonlyone=\"false\">\n<div class=\"wp-block-ub-content-toggle-accordion\" style=\"border-color: #ff6900;\" id=\"ub-content-toggle-panel-block-\">\n\t\t\t<div class=\"wp-block-ub-content-toggle-accordion-title-wrap\" style=\"background-color: #ff6900;\" aria-controls=\"ub-content-toggle-panel-0-e45d5de7-dfb9-46e2-b373-4c74c834578e\" tabindex=\"0\">\n\t\t\t<p class=\"wp-block-ub-content-toggle-accordion-title ub-content-toggle-title-e45d5de7-dfb9-46e2-b373-4c74c834578e\" style=\"color: #000000; \"><strong>Icebreaker<\/strong><\/p>\n\t\t\t<div class=\"wp-block-ub-content-toggle-accordion-toggle-wrap left\" style=\"color: #000000;\"><span class=\"wp-block-ub-content-toggle-accordion-state-indicator wp-block-ub-chevron-down\"><\/span><\/div>\n\t\t<\/div>\n\t\t\t<div role=\"region\" aria-expanded=\"false\" class=\"wp-block-ub-content-toggle-accordion-content-wrap ub-hide\" id=\"ub-content-toggle-panel-0-e45d5de7-dfb9-46e2-b373-4c74c834578e\">\n\n<ul class=\"wp-block-list\">\n<li>Introduction<\/li>\n\n\n\n<li>Short survey<\/li>\n<\/ul>\n\n\n\n<p><a href=\"https:\/\/openbusinessschool.qualtrics.com\/jfe\/form\/SV_bs8QbvyzAqKtx9b\">https:\/\/openbusinessschool.qualtrics.com\/jfe\/form\/SV_bs8QbvyzAqKtx9b<\/a><\/p>\n\n<\/div>\n\t\t<\/div>\n\n<div class=\"wp-block-ub-content-toggle-accordion\" style=\"border-color: #ff6900;\" id=\"ub-content-toggle-panel-block-\">\n\t\t\t<div class=\"wp-block-ub-content-toggle-accordion-title-wrap\" style=\"background-color: #ff6900;\" aria-controls=\"ub-content-toggle-panel-1-e45d5de7-dfb9-46e2-b373-4c74c834578e\" tabindex=\"0\">\n\t\t\t<p class=\"wp-block-ub-content-toggle-accordion-title ub-content-toggle-title-e45d5de7-dfb9-46e2-b373-4c74c834578e\" style=\"color: #000000; \"><strong>Module Learning Outcomes<\/strong><\/p>\n\t\t\t<div class=\"wp-block-ub-content-toggle-accordion-toggle-wrap left\" style=\"color: #000000;\"><span class=\"wp-block-ub-content-toggle-accordion-state-indicator wp-block-ub-chevron-down\"><\/span><\/div>\n\t\t<\/div>\n\t\t\t<div role=\"region\" aria-expanded=\"false\" class=\"wp-block-ub-content-toggle-accordion-content-wrap ub-hide\" id=\"ub-content-toggle-panel-1-e45d5de7-dfb9-46e2-b373-4c74c834578e\">\n\n<ol class=\"wp-block-list\" id=\"block-9ed455b9-382f-4f6d-a293-4f16bef88a50\">\n<li>Demonstrate detailed knowledge of the theories associated with relevant international global <abbr class=\"c2c-text-hover\" title=\"a large company or group of companies that is controlled together as a single organization.\">corporate<\/abbr> governance with an emphasis on the UK and Europe.<\/li>\n\n\n\n<li>Evaluate the outcomes that distinguish between ethical and compliance driver behaviour and apply the Code of <abbr class=\"c2c-text-hover\" title=\"is a\u00a0system\u00a0of\u00a0accepted beliefs\u00a0that\u00a0control behaviour,\u00a0especially\u00a0such a\u00a0system based\u00a0on\u00a0morals.\">Ethics<\/abbr> and Professional <abbr class=\"c2c-text-hover\" title=\"to organise and perform a particular activity.\">Conduct<\/abbr> of individuals.<\/li>\n\n\n\n<li>Discuss the role of regulatory requirements for significant influence functions and the importance of implementing governance and procedures.<\/li>\n\n\n\n<li>Evaluate the impact of <abbr class=\"c2c-text-hover\" title=\"a large company or group of companies that is controlled together as a single organization.\">corporate<\/abbr> governance, financial regulation and public policy on the broader economy.<\/li>\n\n\n\n<li>Assess the use of principle-based and outcome-based regulations to promote ethical and fair outcomes.<\/li>\n\n\n\n<li>Identify the market environment and how regulations impact <abbr class=\"c2c-text-hover\" title=\"a large company or group of companies that is controlled together as a single organization.\">corporate<\/abbr> governance.<\/li>\n<\/ol>\n\n<\/div>\n\t\t<\/div>\n\n<div class=\"wp-block-ub-content-toggle-accordion\" style=\"border-color: #ff6900;\" id=\"ub-content-toggle-panel-block-\">\n\t\t\t<div class=\"wp-block-ub-content-toggle-accordion-title-wrap\" style=\"background-color: #ff6900;\" aria-controls=\"ub-content-toggle-panel-2-e45d5de7-dfb9-46e2-b373-4c74c834578e\" tabindex=\"0\">\n\t\t\t<p class=\"wp-block-ub-content-toggle-accordion-title ub-content-toggle-title-e45d5de7-dfb9-46e2-b373-4c74c834578e\" style=\"color: #000000; \"><strong>Assessments<\/strong><\/p>\n\t\t\t<div class=\"wp-block-ub-content-toggle-accordion-toggle-wrap left\" style=\"color: #000000;\"><span class=\"wp-block-ub-content-toggle-accordion-state-indicator wp-block-ub-chevron-down\"><\/span><\/div>\n\t\t<\/div>\n\t\t\t<div role=\"region\" aria-expanded=\"false\" class=\"wp-block-ub-content-toggle-accordion-content-wrap ub-hide\" id=\"ub-content-toggle-panel-2-e45d5de7-dfb9-46e2-b373-4c74c834578e\">\n\n<p>You will have to complete the following 2 assignments: \u2022<\/p>\n\n\n\n<p>1.Assignment 1: This will be a 20-minute group presentation task. You will be placed into groups by your tutor. <\/p>\n\n\n\n<p>2.Assignment 2: You will have to submit a 2,000-word report individually.<\/p>\n\n\n\n<p><\/p>\n\n\n\n<figure class=\"wp-block-image size-large\"><img data-opt-id=131749397  fetchpriority=\"high\" decoding=\"async\" width=\"770\" height=\"379\" src=\"https:\/\/mlunj1lkadsx.i.optimole.com\/w:auto\/h:auto\/q:mauto\/f:best\/https:\/\/thefinancialeducation.co.uk\/wp-content\/uploads\/2020\/09\/image-23.png\" alt=\"\" class=\"wp-image-4312\" srcset=\"https:\/\/mlunj1lkadsx.i.optimole.com\/w:770\/h:379\/q:mauto\/f:best\/https:\/\/thefinancialeducation.co.uk\/wp-content\/uploads\/2020\/09\/image-23.png 770w, https:\/\/mlunj1lkadsx.i.optimole.com\/w:300\/h:148\/q:mauto\/f:best\/https:\/\/thefinancialeducation.co.uk\/wp-content\/uploads\/2020\/09\/image-23.png 300w, https:\/\/mlunj1lkadsx.i.optimole.com\/w:768\/h:378\/q:mauto\/f:best\/https:\/\/thefinancialeducation.co.uk\/wp-content\/uploads\/2020\/09\/image-23.png 768w, https:\/\/mlunj1lkadsx.i.optimole.com\/w:360\/h:177\/q:mauto\/f:best\/https:\/\/thefinancialeducation.co.uk\/wp-content\/uploads\/2020\/09\/image-23.png 360w\" sizes=\"(max-width: 770px) 100vw, 770px\" \/><figcaption class=\"wp-element-caption\">Attendance &amp; Achievement (312BIR)<\/figcaption><\/figure>\n\n\n\n<p><\/p>\n\n\n\n<figure class=\"wp-block-image size-large\"><img data-opt-id=1464938802  fetchpriority=\"high\" decoding=\"async\" width=\"772\" height=\"496\" src=\"https:\/\/mlunj1lkadsx.i.optimole.com\/w:auto\/h:auto\/q:mauto\/f:best\/https:\/\/thefinancialeducation.co.uk\/wp-content\/uploads\/2020\/09\/image-22.png\" alt=\"\" class=\"wp-image-4310\" srcset=\"https:\/\/mlunj1lkadsx.i.optimole.com\/w:772\/h:496\/q:mauto\/f:best\/https:\/\/thefinancialeducation.co.uk\/wp-content\/uploads\/2020\/09\/image-22.png 772w, https:\/\/mlunj1lkadsx.i.optimole.com\/w:300\/h:193\/q:mauto\/f:best\/https:\/\/thefinancialeducation.co.uk\/wp-content\/uploads\/2020\/09\/image-22.png 300w, https:\/\/mlunj1lkadsx.i.optimole.com\/w:768\/h:493\/q:mauto\/f:best\/https:\/\/thefinancialeducation.co.uk\/wp-content\/uploads\/2020\/09\/image-22.png 768w, https:\/\/mlunj1lkadsx.i.optimole.com\/w:360\/h:231\/q:mauto\/f:best\/https:\/\/thefinancialeducation.co.uk\/wp-content\/uploads\/2020\/09\/image-22.png 360w\" sizes=\"(max-width: 772px) 100vw, 772px\" \/><figcaption class=\"wp-element-caption\">Attendance &amp; Achievement (308BIR)<\/figcaption><\/figure>\n\n<\/div>\n\t\t<\/div>\n\n<div class=\"wp-block-ub-content-toggle-accordion\" style=\"border-color: #ff6900;\" id=\"ub-content-toggle-panel-block-\">\n\t\t\t<div class=\"wp-block-ub-content-toggle-accordion-title-wrap\" style=\"background-color: #ff6900;\" aria-controls=\"ub-content-toggle-panel-3-e45d5de7-dfb9-46e2-b373-4c74c834578e\" tabindex=\"0\">\n\t\t\t<p class=\"wp-block-ub-content-toggle-accordion-title ub-content-toggle-title-e45d5de7-dfb9-46e2-b373-4c74c834578e\" style=\"color: #000000; \"><strong>Session Outcomes<\/strong><\/p>\n\t\t\t<div class=\"wp-block-ub-content-toggle-accordion-toggle-wrap left\" style=\"color: #000000;\"><span class=\"wp-block-ub-content-toggle-accordion-state-indicator wp-block-ub-chevron-down\"><\/span><\/div>\n\t\t<\/div>\n\t\t\t<div role=\"region\" aria-expanded=\"false\" class=\"wp-block-ub-content-toggle-accordion-content-wrap ub-hide\" id=\"ub-content-toggle-panel-3-e45d5de7-dfb9-46e2-b373-4c74c834578e\">\n\n<p>After this session, you should be able to: <\/p>\n\n\n\n<p>\u2022Examine the structure and topics covered in this module. <\/p>\n\n\n\n<p>\u2022Understand the <abbr class=\"c2c-text-hover\" title=\"a large company or group of companies that is controlled together as a single organization.\">Corporate<\/abbr> Governance Code.<\/p>\n\n<\/div>\n\t\t<\/div>\n\n<div class=\"wp-block-ub-content-toggle-accordion\" style=\"border-color: #ff6900;\" id=\"ub-content-toggle-panel-block-\">\n\t\t\t<div class=\"wp-block-ub-content-toggle-accordion-title-wrap\" style=\"background-color: #ff6900;\" aria-controls=\"ub-content-toggle-panel-4-e45d5de7-dfb9-46e2-b373-4c74c834578e\" tabindex=\"0\">\n\t\t\t<p class=\"wp-block-ub-content-toggle-accordion-title ub-content-toggle-title-e45d5de7-dfb9-46e2-b373-4c74c834578e\" style=\"color: #000000; \"><strong>Key topics<\/strong><\/p>\n\t\t\t<div class=\"wp-block-ub-content-toggle-accordion-toggle-wrap left\" style=\"color: #000000;\"><span class=\"wp-block-ub-content-toggle-accordion-state-indicator wp-block-ub-chevron-down\"><\/span><\/div>\n\t\t<\/div>\n\t\t\t<div role=\"region\" aria-expanded=\"false\" class=\"wp-block-ub-content-toggle-accordion-content-wrap ub-hide\" id=\"ub-content-toggle-panel-4-e45d5de7-dfb9-46e2-b373-4c74c834578e\">\n\n<p>We will cover the following topics during this module: <\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li><a href=\"https:\/\/www.frc.org.uk\/getattachment\/88bd8c45-50ea-4841-95b0-d2f4f48069a2\/2018-UK-Corporate-Governance-Code-FINAL.PDF\"><abbr class=\"c2c-text-hover\" title=\"a large company or group of companies that is controlled together as a single organization.\">Corporate<\/abbr> Governance Code<\/a> <\/li>\n\n\n\n<li><abbr class=\"c2c-text-hover\" title=\"a large company or group of companies that is controlled together as a single organization.\">Corporate<\/abbr> structure, <abbr class=\"c2c-text-hover\" title=\"a large company or group of companies that is controlled together as a single organization.\">Corporate<\/abbr> governance principles. <\/li>\n\n\n\n<li>Business boards and roles. <\/li>\n\n\n\n<li>Agency costs and theories <\/li>\n\n\n\n<li>EU directives <\/li>\n\n\n\n<li>Governance history <\/li>\n\n\n\n<li>Principles vs rules based approach <\/li>\n\n\n\n<li>Impact of governance and the wider economy <\/li>\n\n\n\n<li><abbr class=\"c2c-text-hover\" title=\"a large company or group of companies that is controlled together as a single organization.\">Corporate<\/abbr> governance failure<\/li>\n<\/ul>\n\n\n<div class=\"padlet-embed\" style=\"border:1px solid rgba(0,0,0,0.1);border-radius:2px;box-sizing:border-box;overflow:hidden;position:relative;width:100%;background:#F4F4F4\">\n<p style=\"padding:0;margin:0\"><iframe src=\"https:\/\/padlet.com\/embed\/xk5s8fk9muov1ei8\" frameborder=\"0\" allow=\"camera;microphone;geolocation\" style=\"width:100%;height:608px;display:block;padding:0;margin:0\"><\/iframe><\/p>\n<div style=\"padding:8px;text-align:right;margin:0;\"><a href=\"https:\/\/padlet.com?ref=embed\" style=\"padding:0;margin:0;border:none;display:block;line-height:1;height:16px\" target=\"_blank\" rel=\"noopener noreferrer\"><img data-opt-id=1309937187  fetchpriority=\"high\" decoding=\"async\" src=\"https:\/\/padlet.net\/embeds\/made_with_padlet.png\" width=\"86\" height=\"16\" style=\"padding:0;margin:0;background:none;border:none;display:inline;box-shadow:none\" alt=\"Made with Padlet\"><\/a><\/div>\n<\/div>\n\n\n\n<figure class=\"wp-block-embed is-type-video is-provider-youtube wp-block-embed-youtube wp-embed-aspect-16-9 wp-has-aspect-ratio\"><div class=\"wp-block-embed__wrapper\">\n<iframe title=\"Citi: 2019 Annual Stockholders\u2019 Meeting\" width=\"847\" height=\"476\" src=\"https:\/\/www.youtube.com\/embed\/bG6DCY4FIBs?feature=oembed\" frameborder=\"0\" allow=\"accelerometer; autoplay; clipboard-write; encrypted-media; gyroscope; picture-in-picture; web-share\" allowfullscreen><\/iframe>\n<\/div><figcaption class=\"wp-element-caption\">Example: Citi: 2019 Annual Stockholders\u2019 Meeting<\/figcaption><\/figure>\n\n\n<style>.wp-block-kadence-spacer.kt-block-spacer-_27ebff-e7 .kt-block-spacer{height:60px;}.wp-block-kadence-spacer.kt-block-spacer-_27ebff-e7 .kt-divider{border-top-width:1px;height:1px;border-top-color:#eee;width:80%;border-top-style:solid;}<\/style>\n<div class=\"wp-block-kadence-spacer aligncenter kt-block-spacer-_27ebff-e7\"><div class=\"kt-block-spacer kt-block-spacer-halign-center\" style=\"height:60px\"><hr class=\"kt-divider\" style=\"border-top-color:rgba(238, 238, 238, 1);border-top-width:1px;width:80%;border-top-style:solid\"><\/div><\/div>\n\n\n<div class=\"wp-block-image\">\n<figure class=\"aligncenter\"><img data-opt-id=1314733842  data-opt-src=\"https:\/\/kfknowledgebank.kaplan.co.uk\/images\/default-source\/default-album\/P1_Ch1New_020.gif\"  class=\"optimole-lazy-only \"  decoding=\"async\" src=\"data:image/svg+xml,%3Csvg%20viewBox%3D%220%200%20100%%20100%%22%20width%3D%22100%%22%20height%3D%22100%%22%20xmlns%3D%22http%3A%2F%2Fwww.w3.org%2F2000%2Fsvg%22%3E%3Crect%20width%3D%22100%%22%20height%3D%22100%%22%20fill%3D%22transparent%22%2F%3E%3C%2Fsvg%3E\" alt=\"\"><figcaption class=\"wp-element-caption\"><a href=\"https:\/\/kfknowledgebank.kaplan.co.uk\/theory-20of-20corporate-20governance\">Company ownership and control<\/a><\/figcaption><\/figure>\n<\/div>\n\n\n<ul class=\"wp-block-list\">\n<li>The basic purpose of <abbr class=\"c2c-text-hover\" title=\"a large company or group of companies that is controlled together as a single organization.\">corporate<\/abbr> governance is to monitor those parties within a company which control the resources owned by investors.<\/li>\n<\/ul>\n\n\n\n<ul class=\"wp-block-list\">\n<li>The primary objective of sound <abbr class=\"c2c-text-hover\" title=\"a large company or group of companies that is controlled together as a single organization.\">corporate<\/abbr> governance is to contribute to improved <abbr class=\"c2c-text-hover\" title=\"a large company or group of companies that is controlled together as a single organization.\">corporate<\/abbr> performance and accountability in creating long-term shareholder value.<\/li>\n<\/ul>\n\n\n<div class=\"wp-block-image\">\n<figure class=\"aligncenter\"><img data-opt-id=1331365842  data-opt-src=\"https:\/\/kfknowledgebank.kaplan.co.uk\/images\/default-source\/default-album\/P1_Ch1New_030.gif\"  class=\"optimole-lazy-only \"  decoding=\"async\" src=\"data:image/svg+xml,%3Csvg%20viewBox%3D%220%200%20100%%20100%%22%20width%3D%22100%%22%20height%3D%22100%%22%20xmlns%3D%22http%3A%2F%2Fwww.w3.org%2F2000%2Fsvg%22%3E%3Crect%20width%3D%22100%%22%20height%3D%22100%%22%20fill%3D%22transparent%22%2F%3E%3C%2Fsvg%3E\" alt=\"\"><\/figure>\n<\/div>\n<\/div>\n\t\t<\/div>\n\n<div class=\"wp-block-ub-content-toggle-accordion\" style=\"border-color: #ff6900;\" id=\"ub-content-toggle-panel-block-\">\n\t\t\t<div class=\"wp-block-ub-content-toggle-accordion-title-wrap\" style=\"background-color: #ff6900;\" aria-controls=\"ub-content-toggle-panel-5-e45d5de7-dfb9-46e2-b373-4c74c834578e\" tabindex=\"0\">\n\t\t\t<p class=\"wp-block-ub-content-toggle-accordion-title ub-content-toggle-title-e45d5de7-dfb9-46e2-b373-4c74c834578e\" style=\"color: #000000; \"><strong>Role of Financial Regulation<\/strong><\/p>\n\t\t\t<div class=\"wp-block-ub-content-toggle-accordion-toggle-wrap left\" style=\"color: #000000;\"><span class=\"wp-block-ub-content-toggle-accordion-state-indicator wp-block-ub-chevron-down\"><\/span><\/div>\n\t\t<\/div>\n\t\t\t<div role=\"region\" aria-expanded=\"false\" class=\"wp-block-ub-content-toggle-accordion-content-wrap ub-hide\" id=\"ub-content-toggle-panel-5-e45d5de7-dfb9-46e2-b373-4c74c834578e\">\n\n<p>\u2022Financial regulation governs one of the most important systems in an economy- the financial system. <\/p>\n\n\n\n<p>\u2022The primary purpose is to improve the functioning of the financial system. The objective is for markets to function better than they would do without financial regulation. <\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li>Figure 1:\n<ul class=\"wp-block-list\">\n<li>the Financial Policy Committee (FPC) is a macro-prudential regulator within the Bank of England. This Committee will monitor and respond to systemic risks.<\/li>\n\n\n\n<li>the Prudential Regulation Authority (PRA) is a micro-prudential regulator for systemic firms, created as a subsidiary of the Bank of England.<\/li>\n\n\n\n<li>the Financial <abbr class=\"c2c-text-hover\" title=\"to organise and perform a particular activity.\">Conduct<\/abbr> Authority (FCA) is an independent <abbr class=\"c2c-text-hover\" title=\"to organise and perform a particular activity.\">conduct<\/abbr> of business regulator which will ensure that business is conducted in such a way that advances the interests of all users and participants of the UK financial sector.<\/li>\n<\/ul>\n<\/li>\n<\/ul>\n\n\n\n<figure class=\"wp-block-image\"><img data-opt-id=1361211474  data-opt-src=\"https:\/\/publications.parliament.uk\/pa\/cm201012\/cmselect\/cmtreasy\/1574\/157401.gif\"  class=\"optimole-lazy-only \"  decoding=\"async\" src=\"data:image/svg+xml,%3Csvg%20viewBox%3D%220%200%20100%%20100%%22%20width%3D%22100%%22%20height%3D%22100%%22%20xmlns%3D%22http%3A%2F%2Fwww.w3.org%2F2000%2Fsvg%22%3E%3Crect%20width%3D%22100%%22%20height%3D%22100%%22%20fill%3D%22transparent%22%2F%3E%3C%2Fsvg%3E\" alt=\"\"><figcaption class=\"wp-element-caption\"><strong><a href=\"https:\/\/publications.parliament.uk\/pa\/cm201012\/cmselect\/cmtreasy\/1574\/157403.htm\">Figure\u00a0<strong>1: Summary of proposed new system of UK financial regulation system<\/strong><\/a><\/strong><\/figcaption><\/figure>\n\n\n\n<p><\/p>\n\n\n\n<p><\/p>\n\n\n\n<figure class=\"wp-block-video\"><video height=\"540\" style=\"aspect-ratio: 960 \/ 540;\" width=\"960\" controls src=\"https:\/\/thefinancialeducation.co.uk\/wp-content\/uploads\/2020\/09\/ou_futurelearn_managing_my_journey_vid_1098.mp4\"><\/video><figcaption class=\"wp-element-caption\"><a href=\"https:\/\/www.open.edu\/openlearn\/ocw\/mod\/oucontent\/view.php?id=48197&amp;section=1\">The regulatory structure<\/a> (www.open.edu)<\/figcaption><\/figure>\n\n\n\n<p><\/p>\n\n\n<style>.wp-block-kadence-spacer.kt-block-spacer-_5f6e36-bc .kt-block-spacer{height:60px;}.wp-block-kadence-spacer.kt-block-spacer-_5f6e36-bc .kt-divider{border-top-width:1px;height:1px;border-top-color:#eee;width:80%;border-top-style:solid;}<\/style>\n<div class=\"wp-block-kadence-spacer aligncenter kt-block-spacer-_5f6e36-bc\"><div class=\"kt-block-spacer kt-block-spacer-halign-center\" style=\"height:60px\"><hr class=\"kt-divider\" style=\"border-top-color:rgba(238, 238, 238, 1);border-top-width:1px;width:80%;border-top-style:solid\"><\/div><\/div>\n\n\n\n<figure class=\"wp-block-embed is-type-video is-provider-youtube wp-block-embed-youtube wp-embed-aspect-16-9 wp-has-aspect-ratio\"><div class=\"wp-block-embed__wrapper\">\n<iframe title=\"Inside the financial system | London Business School\" width=\"847\" height=\"476\" src=\"https:\/\/www.youtube.com\/embed\/9BjRX0ib2QM?feature=oembed\" frameborder=\"0\" allow=\"accelerometer; autoplay; clipboard-write; encrypted-media; gyroscope; picture-in-picture; web-share\" allowfullscreen><\/iframe>\n<\/div><figcaption class=\"wp-element-caption\">Inside the financial system | London Business School<\/figcaption><\/figure>\n\n\n\n<p><\/p>\n\n\n<style>.wp-block-kadence-spacer.kt-block-spacer-_0c7583-f3 .kt-block-spacer{height:60px;}.wp-block-kadence-spacer.kt-block-spacer-_0c7583-f3 .kt-divider{border-top-width:1px;height:1px;border-top-color:#eee;width:80%;border-top-style:solid;}<\/style>\n<div class=\"wp-block-kadence-spacer aligncenter kt-block-spacer-_0c7583-f3\"><div class=\"kt-block-spacer kt-block-spacer-halign-center\" style=\"height:60px\"><hr class=\"kt-divider\" style=\"border-top-color:rgba(238, 238, 238, 1);border-top-width:1px;width:80%;border-top-style:solid\"><\/div><\/div>\n\n\n\n<p><\/p>\n\n\n\n<p><strong>Read more<\/strong><\/p>\n\n\n\n<p><a href=\"https:\/\/www.frc.org.uk\/getattachment\/88bd8c45-50ea-4841-95b0-d2f4f48069a2\/2018-UK-Corporate-Governance-Code-FINAL.PDF\">https:\/\/www.frc.org.uk\/getattachment\/88bd8c45-50ea-4841-95b0-d2f4f48069a2\/2018-UK-<abbr class=\"c2c-text-hover\" title=\"a large company or group of companies that is controlled together as a single organization.\">Corporate<\/abbr>-Governance-Code-FINAL.PDF<\/a><\/p>\n\n\n\n<p><\/p>\n\n<\/div>\n\t\t<\/div>\n\n<div class=\"wp-block-ub-content-toggle-accordion\" style=\"border-color: #ff6900;\" id=\"ub-content-toggle-panel-block-\">\n\t\t\t<div class=\"wp-block-ub-content-toggle-accordion-title-wrap\" style=\"background-color: #ff6900;\" aria-controls=\"ub-content-toggle-panel-6-e45d5de7-dfb9-46e2-b373-4c74c834578e\" tabindex=\"0\">\n\t\t\t<p class=\"wp-block-ub-content-toggle-accordion-title ub-content-toggle-title-e45d5de7-dfb9-46e2-b373-4c74c834578e\" style=\"color: #000000; \">1.<strong>Protection of investors<\/strong><\/p>\n\t\t\t<div class=\"wp-block-ub-content-toggle-accordion-toggle-wrap left\" style=\"color: #000000;\"><span class=\"wp-block-ub-content-toggle-accordion-state-indicator wp-block-ub-chevron-down\"><\/span><\/div>\n\t\t<\/div>\n\t\t\t<div role=\"region\" aria-expanded=\"false\" class=\"wp-block-ub-content-toggle-accordion-content-wrap ub-hide\" id=\"ub-content-toggle-panel-6-e45d5de7-dfb9-46e2-b373-4c74c834578e\">\n\n<p>\u2022<a href=\"https:\/\/www.fscs.org.uk\/what-we-cover\/investments\/\">Protecting<\/a> users of the financial system is another important goal of regulation and governance. <\/p>\n\n\n\n<p>\u2022One of the main investor protection regulations is the US Securities Act 1993, which was introduced to protect investors from fraud and malpractice linked to issuing shares and trading. <\/p>\n\n\n\n<p>\u2022Investor protection is part of <a href=\"https:\/\/www.esma.europa.eu\/regulation\/mifid-ii-and-investor-protection\">European regulations<\/a>. <\/p>\n\n\n\n<p>\u2022Disclosures have been introduced investors so that they are able to assess clearly the risks they are taking on.<\/p>\n\n\n\n<p><strong>Read more<\/strong><\/p>\n\n\n\n<p><a href=\"https:\/\/www.fscs.org.uk\/what-we-cover\/investments\/\">https:\/\/www.fscs.org.uk\/what-we-cover\/investments\/<\/a><\/p>\n\n\n\n<p><a href=\"https:\/\/www.fca.org.uk\/news\/speeches\/investor-protection-uk-new-tools-new-challenges\">https:\/\/www.fca.org.uk\/news\/speeches\/investor-protection-uk-new-tools-new-challenges<\/a><\/p>\n\n\n\n<p><a href=\"https:\/\/www.esma.europa.eu\/regulation\/mifid-ii-and-investor-protection\">https:\/\/www.esma.europa.eu\/regulation\/mifid-ii-and-investor-protection<\/a><\/p>\n\n<\/div>\n\t\t<\/div>\n\n<div class=\"wp-block-ub-content-toggle-accordion\" style=\"border-color: #ff6900;\" id=\"ub-content-toggle-panel-block-\">\n\t\t\t<div class=\"wp-block-ub-content-toggle-accordion-title-wrap\" style=\"background-color: #ff6900;\" aria-controls=\"ub-content-toggle-panel-7-e45d5de7-dfb9-46e2-b373-4c74c834578e\" tabindex=\"0\">\n\t\t\t<p class=\"wp-block-ub-content-toggle-accordion-title ub-content-toggle-title-e45d5de7-dfb9-46e2-b373-4c74c834578e\" style=\"color: #000000; \">2. <strong>Financial stability<\/strong><\/p>\n\t\t\t<div class=\"wp-block-ub-content-toggle-accordion-toggle-wrap left\" style=\"color: #000000;\"><span class=\"wp-block-ub-content-toggle-accordion-state-indicator wp-block-ub-chevron-down\"><\/span><\/div>\n\t\t<\/div>\n\t\t\t<div role=\"region\" aria-expanded=\"false\" class=\"wp-block-ub-content-toggle-accordion-content-wrap ub-hide\" id=\"ub-content-toggle-panel-7-e45d5de7-dfb9-46e2-b373-4c74c834578e\">\n\n<ul class=\"wp-block-list\">\n<li>The previous financial crisis has shown the importance of regulation, which aims to provide stability to the financial system. <\/li>\n\n\n\n<li>The failure of one company can have a \u2018domino effect\u2019 on the entire financial sector and economy as a whole. <\/li>\n\n\n\n<li>The nature of the losses firms can suffer could advance do much beyond the point of no return and may only survive if the central government takes over and injects cash into the business.<\/li>\n<\/ul>\n\n\n\n<figure class=\"wp-block-embed is-type-video is-provider-youtube wp-block-embed-youtube wp-embed-aspect-16-9 wp-has-aspect-ratio\"><div class=\"wp-block-embed__wrapper\">\n<iframe title=\"The 2008 Financial Crisis: Explaining the Start\" width=\"847\" height=\"476\" src=\"https:\/\/www.youtube.com\/embed\/zkxl8na9gE8?feature=oembed\" frameborder=\"0\" allow=\"accelerometer; autoplay; clipboard-write; encrypted-media; gyroscope; picture-in-picture; web-share\" allowfullscreen><\/iframe>\n<\/div><figcaption class=\"wp-element-caption\">The 2008 Financial Crisis: Explaining the Start<\/figcaption><\/figure>\n\n\n<style>.wp-block-kadence-spacer.kt-block-spacer-_2b97cb-97 .kt-block-spacer{height:60px;}.wp-block-kadence-spacer.kt-block-spacer-_2b97cb-97 .kt-divider{border-top-width:1px;height:1px;border-top-color:#eee;width:80%;border-top-style:solid;}<\/style>\n<div class=\"wp-block-kadence-spacer aligncenter kt-block-spacer-_2b97cb-97\"><div class=\"kt-block-spacer kt-block-spacer-halign-center\" style=\"height:60px\"><hr class=\"kt-divider\" style=\"border-top-color:rgba(238, 238, 238, 1);border-top-width:1px;width:80%;border-top-style:solid\"><\/div><\/div>\n\n\n\n<figure class=\"wp-block-embed is-type-video is-provider-youtube wp-block-embed-youtube wp-embed-aspect-16-9 wp-has-aspect-ratio\"><div class=\"wp-block-embed__wrapper\">\n<iframe title=\"Warren Buffett Explains the 2008 Financial Crisis\" width=\"847\" height=\"476\" src=\"https:\/\/www.youtube.com\/embed\/k2VSSNECLTQ?feature=oembed\" frameborder=\"0\" allow=\"accelerometer; autoplay; clipboard-write; encrypted-media; gyroscope; picture-in-picture; web-share\" allowfullscreen><\/iframe>\n<\/div><figcaption class=\"wp-element-caption\">Warren Buffett Explains the 2008 Financial Crisis<\/figcaption><\/figure>\n\n<\/div>\n\t\t<\/div>\n\n<div class=\"wp-block-ub-content-toggle-accordion\" style=\"border-color: #ff6900;\" id=\"ub-content-toggle-panel-block-\">\n\t\t\t<div class=\"wp-block-ub-content-toggle-accordion-title-wrap\" style=\"background-color: #ff6900;\" aria-controls=\"ub-content-toggle-panel-8-e45d5de7-dfb9-46e2-b373-4c74c834578e\" tabindex=\"0\">\n\t\t\t<p class=\"wp-block-ub-content-toggle-accordion-title ub-content-toggle-title-e45d5de7-dfb9-46e2-b373-4c74c834578e\" style=\"color: #000000; \">3. <strong>Competition<\/strong><\/p>\n\t\t\t<div class=\"wp-block-ub-content-toggle-accordion-toggle-wrap left\" style=\"color: #000000;\"><span class=\"wp-block-ub-content-toggle-accordion-state-indicator wp-block-ub-chevron-down\"><\/span><\/div>\n\t\t<\/div>\n\t\t\t<div role=\"region\" aria-expanded=\"false\" class=\"wp-block-ub-content-toggle-accordion-content-wrap ub-hide\" id=\"ub-content-toggle-panel-8-e45d5de7-dfb9-46e2-b373-4c74c834578e\">\n\n<p>\u2022Financial regulation is also concerned with <a href=\"https:\/\/www.fca.org.uk\/about\/promoting-competition\">promoting competition<\/a>. <\/p>\n\n\n\n<p>\u2022There are regulatory bodies to prevent unfair competition or from large firms monopolising a sector. <\/p>\n\n\n\n<p>\u2022There are regulations to encourage more anti- competitive acts between <abbr class=\"c2c-text-hover\" title=\"a person who buys and sells foreign money, shares in companies, etc., for other people \/ to arrange something such as a deal, agreement, etc. between two or more groups or countries\">brokers<\/abbr>, <abbr class=\"c2c-text-hover\" title=\"a person or company that buys and sells something\/a person or company that buys and sells shares, currencies\">dealers<\/abbr> and exchange. <\/p>\n\n\n\n<p>\u2022Fair competition makes it easier for new entrants and new markets to be formed.<\/p>\n\n\n\n<p><\/p>\n\n\n\n<figure class=\"wp-block-embed is-type-video is-provider-youtube wp-block-embed-youtube wp-embed-aspect-16-9 wp-has-aspect-ratio\"><div class=\"wp-block-embed__wrapper\">\n<iframe title=\"PwC Financial Services Technology 2020 and beyond: Embracing disruption\" width=\"847\" height=\"476\" src=\"https:\/\/www.youtube.com\/embed\/B6-ysf-0O3M?feature=oembed\" frameborder=\"0\" allow=\"accelerometer; autoplay; clipboard-write; encrypted-media; gyroscope; picture-in-picture; web-share\" allowfullscreen><\/iframe>\n<\/div><figcaption class=\"wp-element-caption\">Financial services technology 2020 and beyond: Embracing disruption<\/figcaption><\/figure>\n\n\n\n<p><\/p>\n\n\n\n<p><\/p>\n\n\n\n<p><strong>Read more<\/strong><\/p>\n\n\n\n<p><a href=\"https:\/\/www.fca.org.uk\/about\/promoting-competition\">https:\/\/www.fca.org.uk\/about\/promoting-competition<\/a><\/p>\n\n\n\n<p><a href=\"https:\/\/www.fca.org.uk\/news\/speeches\/competition-and-innovation-financial-services-regulator-perspective\">https:\/\/www.fca.org.uk\/news\/speeches\/competition-and-innovation-financial-services-regulator-perspective<\/a><\/p>\n\n\n\n<p><a href=\"https:\/\/www.europarl.europa.eu\/RegData\/etudes\/STUD\/2018\/619027\/IPOL_STU(2018)619027_EN.pdf\">Competition issues in the Area of Financial Technology (FinTech)<\/a><\/p>\n\n<\/div>\n\t\t<\/div>\n\n<div class=\"wp-block-ub-content-toggle-accordion\" style=\"border-color: #ff6900;\" id=\"ub-content-toggle-panel-block-\">\n\t\t\t<div class=\"wp-block-ub-content-toggle-accordion-title-wrap\" style=\"background-color: #ff6900;\" aria-controls=\"ub-content-toggle-panel-9-e45d5de7-dfb9-46e2-b373-4c74c834578e\" tabindex=\"0\">\n\t\t\t<p class=\"wp-block-ub-content-toggle-accordion-title ub-content-toggle-title-e45d5de7-dfb9-46e2-b373-4c74c834578e\" style=\"color: #000000; \">4. <strong>Preventing financial crime<\/strong><\/p>\n\t\t\t<div class=\"wp-block-ub-content-toggle-accordion-toggle-wrap left\" style=\"color: #000000;\"><span class=\"wp-block-ub-content-toggle-accordion-state-indicator wp-block-ub-chevron-down\"><\/span><\/div>\n\t\t<\/div>\n\t\t\t<div role=\"region\" aria-expanded=\"false\" class=\"wp-block-ub-content-toggle-accordion-content-wrap ub-hide\" id=\"ub-content-toggle-panel-9-e45d5de7-dfb9-46e2-b373-4c74c834578e\">\n\n<p>\u2022Financial crime might be understood as any criminal act associated with the financial system. <\/p>\n\n\n\n<p>\u2022<a href=\"https:\/\/www.nationalcrimeagency.gov.uk\/what-we-do\/crime-threats\/money-laundering-and-terrorist-financing\">Preventing crime <\/a>is not an independent goal of <abbr class=\"c2c-text-hover\" title=\"a large company or group of companies that is controlled together as a single organization.\">corporate<\/abbr> governance ; rather, it is simply an instrument for achieving the regulatory goals that criminals sanctions support. <\/p>\n\n\n\n<p>\u2022This includes preventing: <\/p>\n\n\n\n<p>-Financing criminal and terrorist organisations <\/p>\n\n\n\n<p>-Money Laundering<\/p>\n\n\n\n<p> -Payments associated with illegals trades <\/p>\n\n\n\n<p>-Bribery and corruption <\/p>\n\n\n\n<p><a href=\"https:\/\/www.nationalcrimeagency.gov.uk\/what-we-do\/crime-threats\/money-laundering-and-terrorist-financing\">https:\/\/www.nationalcrimeagency.gov.uk\/what-we-do\/crime-threats\/money-laundering-and-terrorist-financing<\/a><\/p>\n\n\n\n<p><a href=\"https:\/\/www.fca.org.uk\/firms\/financial-crime\">https:\/\/www.fca.org.uk\/firms\/financial-crime<\/a><\/p>\n\n<\/div>\n\t\t<\/div>\n\n<div class=\"wp-block-ub-content-toggle-accordion\" style=\"border-color: #ff6900;\" id=\"ub-content-toggle-panel-block-\">\n\t\t\t<div class=\"wp-block-ub-content-toggle-accordion-title-wrap\" style=\"background-color: #ff6900;\" aria-controls=\"ub-content-toggle-panel-10-e45d5de7-dfb9-46e2-b373-4c74c834578e\" tabindex=\"0\">\n\t\t\t<p class=\"wp-block-ub-content-toggle-accordion-title ub-content-toggle-title-e45d5de7-dfb9-46e2-b373-4c74c834578e\" style=\"color: #000000; \">5. <strong><strong>Other goals of regulation<\/strong><\/strong><\/p>\n\t\t\t<div class=\"wp-block-ub-content-toggle-accordion-toggle-wrap left\" style=\"color: #000000;\"><span class=\"wp-block-ub-content-toggle-accordion-state-indicator wp-block-ub-chevron-down\"><\/span><\/div>\n\t\t<\/div>\n\t\t\t<div role=\"region\" aria-expanded=\"false\" class=\"wp-block-ub-content-toggle-accordion-content-wrap ub-hide\" id=\"ub-content-toggle-panel-10-e45d5de7-dfb9-46e2-b373-4c74c834578e\">\n\n<p>\u2022Provide transparency and full disclosure. <\/p>\n\n\n\n<p>\u2022Accountability- <abbr class=\"c2c-text-hover\" title=\"a large company or group of companies that is controlled together as a single organization.\">corporate<\/abbr> governance structure encourages accountability of the management to the company directors and the accountability of the directors to the shareholders. <\/p>\n\n\n\n<p>\u2022Increasing Shareholder Wealth- the main objective of <abbr class=\"c2c-text-hover\" title=\"a large company or group of companies that is controlled together as a single organization.\">corporate<\/abbr> governance is to protect the long-term interests of the shareholders<\/p>\n\n<\/div>\n\t\t<\/div>\n\n<div class=\"wp-block-ub-content-toggle-accordion\" style=\"border-color: #ff6900;\" id=\"ub-content-toggle-panel-block-\">\n\t\t\t<div class=\"wp-block-ub-content-toggle-accordion-title-wrap\" style=\"background-color: #ff6900;\" aria-controls=\"ub-content-toggle-panel-11-e45d5de7-dfb9-46e2-b373-4c74c834578e\" tabindex=\"0\">\n\t\t\t<p class=\"wp-block-ub-content-toggle-accordion-title ub-content-toggle-title-e45d5de7-dfb9-46e2-b373-4c74c834578e\" style=\"color: #000000; \"><strong>Governance and ethics<\/strong><\/p>\n\t\t\t<div class=\"wp-block-ub-content-toggle-accordion-toggle-wrap left\" style=\"color: #000000;\"><span class=\"wp-block-ub-content-toggle-accordion-state-indicator wp-block-ub-chevron-down\"><\/span><\/div>\n\t\t<\/div>\n\t\t\t<div role=\"region\" aria-expanded=\"false\" class=\"wp-block-ub-content-toggle-accordion-content-wrap ub-hide\" id=\"ub-content-toggle-panel-11-e45d5de7-dfb9-46e2-b373-4c74c834578e\">\n\n<p>\u2022Many of the biggest <abbr class=\"c2c-text-hover\" title=\"a large company or group of companies that is controlled together as a single organization.\">corporate<\/abbr> <a href=\"https:\/\/www.independent.co.uk\/news\/business\/analysis-and-features\/carillion-collapse-latest-who-responsible-richard-adam-howson-philip-green-mp-report-a8353921.html\">governance failures <\/a>in the past have been in the most advanced countries. <\/p>\n\n\n\n<p>\u2022Defrauding shareholders has been a key reason for <abbr class=\"c2c-text-hover\" title=\"a large company or group of companies that is controlled together as a single organization.\">corporate<\/abbr> governance failures in advanced economies. <\/p>\n\n\n\n<p>\u2022<abbr class=\"c2c-text-hover\" title=\"a large company or group of companies that is controlled together as a single organization.\">Corporate<\/abbr> governance encourages <abbr class=\"c2c-text-hover\" title=\"is a\u00a0system\u00a0of\u00a0accepted beliefs\u00a0that\u00a0control behaviour,\u00a0especially\u00a0such a\u00a0system based\u00a0on\u00a0morals.\">ethics<\/abbr> to encourage managers of firms to think about the shared values of stakeholders.<\/p>\n\n\n<style>.wp-block-kadence-spacer.kt-block-spacer-_df1ea5-0c .kt-block-spacer{height:60px;}.wp-block-kadence-spacer.kt-block-spacer-_df1ea5-0c .kt-divider{border-top-width:1px;height:1px;border-top-color:#eee;width:80%;border-top-style:solid;}<\/style>\n<div class=\"wp-block-kadence-spacer aligncenter kt-block-spacer-_df1ea5-0c\"><div class=\"kt-block-spacer kt-block-spacer-halign-center\" style=\"height:60px\"><hr class=\"kt-divider\" style=\"border-top-color:rgba(238, 238, 238, 1);border-top-width:1px;width:80%;border-top-style:solid\"><\/div><\/div>\n\n\n\n<p><strong>Examples:<\/strong><\/p>\n\n\n\n<h5 class=\"wp-block-heading\"><a href=\"https:\/\/www.cnbc.com\/2020\/06\/29\/enron-of-germany-wirecard-scandal-casts-a-shadow-on-governance.html\">1. \u2018The Enron of Germany\u2019: Wirecard scandal casts a shadow on <abbr class=\"c2c-text-hover\" title=\"a large company or group of companies that is controlled together as a single organization.\">corporate<\/abbr> governance<\/a><\/h5>\n\n\n\n<p>The Munich-based payments processor\u00a0<a href=\"https:\/\/www.cnbc.com\/2020\/06\/25\/german-payments-company-wirecard-files-for-insolvency.html\">filed for insolvency<\/a>\u00a0on Thursday,\u00a0<a href=\"https:\/\/www.reuters.com\/article\/us-wirecard-accounts\/wirecard-collapses-owing-creditors-4-billion-idUSKBN23W176\" target=\"_blank\" rel=\"noreferrer noopener\">reportedly\u00a0<\/a>owing creditors 3.5 billion euros ($3.9 billion). The company\u2019s collapse follows a\u00a0<a href=\"https:\/\/www.cnbc.com\/2020\/06\/19\/wirecards-future-is-in-doubt-as-accounting-scandal-deepens.html\">series of investigative reports<\/a>\u00a0from the Financial Times into claims about <abbr class=\"c2c-text-hover\" title=\"The process of identifying, measuring and communicating economic information to permit informed judgements and decisions by users of the information.Accounting cycle (Chapter 12): The sequence in which data is recorded and processed until it becomes part of the financial statements at the end of the period.Accounting policies (Chapter 41): Those principles, bases, conventions, rules and practices applied by an entity that specify how the effects of transactions and other events are to be reflected in its financial statements.Accounts (or final accounts) (Chapter 16): This is a term previously used to refer to statements produced at the end of accounting periods, such as the income statement and the balance sheet. Nowadays, the term \u2018financial statements\u2019 is more commonly used.\">accounting<\/abbr> irregularities.<\/p>\n\n\n\n<p>The revelation last week that 1.9 billion euros had\u00a0<a href=\"https:\/\/www.cnbc.com\/2020\/06\/18\/wirecard-shares-plummet-as-payments-firm-postpones-annual-report.html\">disappeared\u00a0<\/a>from Wirecard\u2019s <abbr class=\"c2c-text-hover\" title=\"(Statement of Financial Position)shows assets, liabilities and equity (capital). The statement lists the assets, liabilities, and equity of an organization as of the report date. As such, it provides a snapshot of the financial condition of a business as of a specific date. It is one of the financial statements, and so is commonly presented alongside the income statement and statement of cash flows.\">balance sheet<\/abbr> has seen the firm\u2019s share price collapse 98% and former CEO Markus Braun\u00a0<a href=\"https:\/\/www.cnbc.com\/2020\/06\/23\/former-wirecard-ceo-markus-braun-arrested.html\">arrested\u00a0<\/a>on suspicion of falsifying accounts.<\/p>\n\n\n\n<p>The Wirecard saga and its broader implications raises many questions, with some experts describing the scandal as the \u201cEnron of Germany.\u201d<\/p>\n\n\n<p><iframe width=\"560\" height=\"349\" src=\"https:\/\/player.cnbc.com\/p\/gZWlPC\/cnbc_global?playertype=synd&amp;byGuid=7000142826\" frameborder=\"0\" scrolling=\"no\" allowfullscreen webkitallowfullscreen mozallowfullscreen oallowfullscreen msallowfullscreen><\/iframe><\/p>\n\n\n\n<p><strong>2. Tesco <abbr class=\"c2c-text-hover\" title=\"The process of identifying, measuring and communicating economic information to permit informed judgements and decisions by users of the information.Accounting cycle (Chapter 12): The sequence in which data is recorded and processed until it becomes part of the financial statements at the end of the period.Accounting policies (Chapter 41): Those principles, bases, conventions, rules and practices applied by an entity that specify how the effects of transactions and other events are to be reflected in its financial statements.Accounts (or final accounts) (Chapter 16): This is a term previously used to refer to statements produced at the end of accounting periods, such as the income statement and the balance sheet. Nowadays, the term \u2018financial statements\u2019 is more commonly used.\">Accounting<\/abbr> Scandal in 2014<\/strong><\/p>\n\n\n\n<p><a href=\"https:\/\/www.independent.co.uk\/news\/business\/news\/watchdog-closes-tesco-accounting-scandal-investigation-a9554296.html\">Watchdog closes five-year probe into Tesco\u2019s \u00a3250m <abbr class=\"c2c-text-hover\" title=\"The process of identifying, measuring and communicating economic information to permit informed judgements and decisions by users of the information.Accounting cycle (Chapter 12): The sequence in which data is recorded and processed until it becomes part of the financial statements at the end of the period.Accounting policies (Chapter 41): Those principles, bases, conventions, rules and practices applied by an entity that specify how the effects of transactions and other events are to be reflected in its financial statements.Accounts (or final accounts) (Chapter 16): This is a term previously used to refer to statements produced at the end of accounting periods, such as the income statement and the balance sheet. Nowadays, the term \u2018financial statements\u2019 is more commonly used.\">accounting<\/abbr> scandal<\/a><\/p>\n\n\n\n<p>The Financial Reporting Council, which keeps an eye on the auditors who sign off companies\u2019 books, opened up a probe into a number of employees of Britain\u2019s biggest supermarket in December 2014 after allegations that profits had been overstated by \u00a3250m. That figure was later increased to \u00a3326m.<\/p>\n\n\n\n<p>Tesco will now finally be able to draw a line under the accusations of\u00a0<a href=\"https:\/\/www.independent.co.uk\/topic\/false-accounting\">false <abbr class=\"c2c-text-hover\" title=\"The process of identifying, measuring and communicating economic information to permit informed judgements and decisions by users of the information.Accounting cycle (Chapter 12): The sequence in which data is recorded and processed until it becomes part of the financial statements at the end of the period.Accounting policies (Chapter 41): Those principles, bases, conventions, rules and practices applied by an entity that specify how the effects of transactions and other events are to be reflected in its financial statements.Accounts (or final accounts) (Chapter 16): This is a term previously used to refer to statements produced at the end of accounting periods, such as the income statement and the balance sheet. Nowadays, the term \u2018financial statements\u2019 is more commonly used.\">accounting<\/abbr><\/a>\u00a0that rocked the stock market in 2014 and saw \u00a32bn wiped of Tesco\u2019s value.<\/p>\n\n\n\n<p>Following a \u00a36.4bn loss that year \u2013 one of the biggest in UK <abbr class=\"c2c-text-hover\" title=\"a large company or group of companies that is controlled together as a single organization.\">corporate<\/abbr> history \u2013 the chain has since turned around its business under chief executive Dave Lewis who is set to depart in October.<\/p>\n\n\n\n<figure class=\"wp-block-embed is-type-video is-provider-youtube wp-block-embed-youtube wp-embed-aspect-16-9 wp-has-aspect-ratio\"><div class=\"wp-block-embed__wrapper\">\n<iframe title=\"Antony Welfare - Retail Expert -Tesco Accounting Scandal\" width=\"847\" height=\"476\" src=\"https:\/\/www.youtube.com\/embed\/iP9vuRubYVU?start=8&amp;feature=oembed\" frameborder=\"0\" allow=\"accelerometer; autoplay; clipboard-write; encrypted-media; gyroscope; picture-in-picture; web-share\" allowfullscreen><\/iframe>\n<\/div><\/figure>\n\n\n\n<p><strong>Read more<\/strong><\/p>\n\n\n\n<p><a href=\"https:\/\/www.independent.co.uk\/news\/business\/analysis-and-features\/carillion-collapse-latest-who-responsible-richard-adam-howson-philip-green-mp-report-a8353921.html\">https:\/\/www.independent.co.uk\/news\/business\/analysis-and-features\/carillion-collapse-latest-who-responsible-richard-adam-howson-philip-green-mp-report-a8353921.html<\/a><\/p>\n\n<\/div>\n\t\t<\/div>\n\n<div class=\"wp-block-ub-content-toggle-accordion\" style=\"border-color: #ff6900;\" id=\"ub-content-toggle-panel-block-\">\n\t\t\t<div class=\"wp-block-ub-content-toggle-accordion-title-wrap\" style=\"background-color: #ff6900;\" aria-controls=\"ub-content-toggle-panel-12-e45d5de7-dfb9-46e2-b373-4c74c834578e\" tabindex=\"0\">\n\t\t\t<p class=\"wp-block-ub-content-toggle-accordion-title ub-content-toggle-title-e45d5de7-dfb9-46e2-b373-4c74c834578e\" style=\"color: #000000; \"><strong>Bibliography<\/strong><\/p>\n\t\t\t<div class=\"wp-block-ub-content-toggle-accordion-toggle-wrap left\" style=\"color: #000000;\"><span class=\"wp-block-ub-content-toggle-accordion-state-indicator wp-block-ub-chevron-down\"><\/span><\/div>\n\t\t<\/div>\n\t\t\t<div role=\"region\" aria-expanded=\"false\" class=\"wp-block-ub-content-toggle-accordion-content-wrap ub-hide\" id=\"ub-content-toggle-panel-12-e45d5de7-dfb9-46e2-b373-4c74c834578e\">\n\n<p>Armour, J., Awrey, D., Enriques, L., Gordon, J., Mayer, C and Payne, J. (2016) <em>Principles of Financial Regulation <\/em>Oxford: Oxford University press<\/p>\n\n<\/div>\n\t\t<\/div>\n<\/div>\n\n\n<p><\/p>\n","protected":false},"excerpt":{"rendered":"<p><abbr class='c2c-text-hover' title='a large company or group of companies that is controlled together as a single organization.'>Corporate<\/abbr> Governance and Risk<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_eb_attr":"","_uag_custom_page_level_css":"","footnotes":""},"categories":[25],"tags":[],"table_tags":[],"class_list":["post-4178","post","type-post","status-publish","format-standard","hentry","category-211bir"],"featured_image_src":null,"author_info":{"display_name":"admin","author_link":"https:\/\/thefinancialeducation.co.uk\/index.php\/author\/admin\/"},"uagb_featured_image_src":{"full":false,"thumbnail":false,"medium":false,"medium_large":false,"large":false,"1536x1536":false,"2048x2048":false,"education-hub-thumb":false},"uagb_author_info":{"display_name":"admin","author_link":"https:\/\/thefinancialeducation.co.uk\/index.php\/author\/admin\/"},"uagb_comment_info":10,"uagb_excerpt":"Corporate Governance and Risk","_links":{"self":[{"href":"https:\/\/thefinancialeducation.co.uk\/index.php\/wp-json\/wp\/v2\/posts\/4178","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/thefinancialeducation.co.uk\/index.php\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/thefinancialeducation.co.uk\/index.php\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/thefinancialeducation.co.uk\/index.php\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/thefinancialeducation.co.uk\/index.php\/wp-json\/wp\/v2\/comments?post=4178"}],"version-history":[{"count":58,"href":"https:\/\/thefinancialeducation.co.uk\/index.php\/wp-json\/wp\/v2\/posts\/4178\/revisions"}],"predecessor-version":[{"id":25888,"href":"https:\/\/thefinancialeducation.co.uk\/index.php\/wp-json\/wp\/v2\/posts\/4178\/revisions\/25888"}],"wp:attachment":[{"href":"https:\/\/thefinancialeducation.co.uk\/index.php\/wp-json\/wp\/v2\/media?parent=4178"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/thefinancialeducation.co.uk\/index.php\/wp-json\/wp\/v2\/categories?post=4178"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/thefinancialeducation.co.uk\/index.php\/wp-json\/wp\/v2\/tags?post=4178"},{"taxonomy":"table_tags","embeddable":true,"href":"https:\/\/thefinancialeducation.co.uk\/index.php\/wp-json\/wp\/v2\/table_tags?post=4178"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}