ETHICS AND RULES IN FINANCE

The course aims at examining the law and economics rationale for capital markets regulation and gives students a framework for understanding how markets are regulated.
A particular focus is on sustainable finance and on the regulatory framework developed to take adequate care of Environmental, Social and Governance (ESG) issues for investment decisions.

After this course, the student is able to:

• understand the reasons underlying the regulation of financial markets;
• Understand the relevance of the law and economics approach to address complex problems;
• apply basic (micro)economic ideas and models to particular legal settings;
• analyze the effect of a law or aspect of the legal system on behavior, and judge which law will lead to better outcomes in a particular setting;
• Apply and develop an interdisciplinary mindset
• Reflect on real-life situations from a different entry point of analysis

The student is expected to have some basic foundational knowledge of both economic theories and legal background

The first part of the course is concerned with the rationale and the reasons for the regulation of financial markets vis-à-vis the law and economics methodology. The program proceeds to consider some specific areas (such as capital requirements and corporate governance) as examples of application of the theories studied in the initial methodological session. Finally, the course focuses on the policy and regulation of financial sustainability.

Collection of papers

The assessment method consists in a written exam made by open questions and mimicking real case situations

The course will be a mix of lectures and seminars

English

written