FITE7411B - RegTech in finance

Semester 2, 2023-24

Professor
Douglas Arner
Teaching assistant [TBA]
Syllabus The course studies the use of regulatory technology, or Regtech, in the context of regulatory monitoring, reporting, and compliance. It demonstrates that the true potential of Regtech lies in its ability to effect a profound transition from a Know Your Customer (KYC) to a Know Your Data (KYD) approach, which relies on efficient processes for the collection, formatting and analysis of reported data. The course covers the Regtech landscape and global challenges, the use of innovative technologies and disruption, Regtech investment, application for authorized institutions and industry adoption, illustrated with initiatives and examples in the Hong Kong context. It also discusses social impact and regulation, and the future development of Regtech.
Introduction by Professor The course will consider the role of technology in regulation, compliance and supervision, commonly known as “regulatory technology” and supervisory technology: RegTech / SupTech.

The course will focus on finance, where RegTech / SupTech are the most developed but will also consider evolving uses in other regulated industries such as health, energy and sustainable development.

Following an introduction to the central ideas of RegTech and SupTech, the course will begin by considering the roles of regulation in finance then move to focus on a range of specific areas of RegTech / SupTech application and development: securities markets, prudential regulation / financial stability, fraud / consumer protection / payments, market integrity / AML, sustainability, financial inclusion. The course will finally turn to evolving use beyond the financial sector and future directions / developments / trends.
Learning Outcomes
Course Learning Outcomes Relevant Programme Learning Outcome
CLO1. Understand the use of technology for regulation, compliance, monitoring, supervision and enforcement PLO1, 2, 3, 4, 5, 6, 7, 8, 9, 10, 11, 12, 13, 14, 15, 16
CLO2: Understand the role of RegTech / SupTech in financial regulation and supervision PLO1, 2, 3, 4, 5, 6, 7, 8, 9, 10, 11, 12, 13, 14, 15, 16
CLO3: Be able to critically analyse the use of technology for financial regulation and supervision in the context of specific use cases PLO1, 2, 3, 4, 5, 6, 7, 8, 9, 10, 11, 12, 13, 14, 15, 16
CLO4: Be able to apply the framework to consider the future uses of technology for regulatory and supervisory purposes, both in finance and in other regulated industries PLO1, 2, 3, 4, 5, 6, 7, 8, 9, 10, 11, 12, 13, 14, 15, 16
View Programme Learning Outcomes
Pre-requisites Nil
Compatibility Nil
Topics covered
Course Content No. of Hours Course Learning Outcomes
Understanding RegTech / SupTech 3 CLO1, CLO2, CLO3, CLO4
Understanding financial regulation 3 CLO1, CLO2, CLO3, CLO4
Securities markets 3 CLO1, CLO2, CLO3, CLO4
Prudential regulation / financial stability 3 CLO1, CLO2, CLO3, CLO4
Fraud / consumer protection / payments 3 CLO1, CLO2, CLO3, CLO4
Market integrity / AML 3 CLO1, CLO2, CLO3, CLO4
Sustainability 3 CLO1, CLO2, CLO3, CLO4
Financial inclusion 3 CLO1, CLO2, CLO3, CLO4
RegTech / SupTech in other regulated industries 3 CLO1, CLO2, CLO3, CLO4
Looking forward 3 CLO1, CLO2, CLO3, CLO4
 
Assessment
Description Type Weighting * Tentative Assessment Period /
Examination Period ^		 Course Learning Outcomes
Assignments and/or Project Continuous Assessment 60% -  
Written exam covers all contents taught Written Examination 40% Takehome examination  
* The weighting of coursework and examination marks is subject to approval
^ The exact examination date uses to be released when all enrolments are confirmed after add/drop period by the Examinations Office.  Students are obliged to follow the examination schedule.  Students should NOT enrol in the course if they are not certain that they will be in Hong Kong during the examination period.  Absent from examination may result in failure in the course. There is no supplementary examination for all MSc curriculums in the Faculty of Engineering.
Course materials

References:

  • Janos Barberis, Douglas W. Arner, Ross P. Buckley, The REGTECH Book: The Financial Technology Handbook for Investors, Entrepreneurs and Visionaries in Regulation, Wiley 1st Edition
  • Ross P. Buckley, FinTech, Cambridge University Press (November 23, 2023)
Session dates
Date Time Venue Remark
Session 1 15 Jan 2024 (Mon) 7:00pm - 10:00pm KB-223  
Session 2 29 Jan 2024 (Mon) 7:00pm - 10:00pm KB-223  
Session 3 5 Feb 2024 (Mon) 7:00pm - 10:00pm KB-223  
Session 4 4 Mar 2024 (Mon) 7:00pm - 10:00pm KB-223  
Session 5 11 Mar 2024 (Mon) 7:00pm - 10:00pm KB-223  
Session 6 25 Mar 2024 (Mon) 7:00pm - 10:00pm KB-223  
Session 7 8 Apr 2024 (Mon) 7:00pm - 10:00pm KB-223  
Session 8 15 Apr 2024 (Mon) 7:00pm - 10:00pm KB-223  
Session 9 22 Apr 2024 (Mon) 7:00pm - 10:00pm KB-223  
Session 10 29 Apr 2024 (Mon) 7:00pm - 10:00pm KB-223  
KB - Knowles Building
Add/drop 15 January, 2024 - 29 January, 2024
Maximum class size 150
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