Memorandum of Advice UK & International Banking Law ASSESSMENT Candidates must submit to the Registry a final draft of their

Memorandum of Advice for the Module in UK & International Banking Law no later than Monday 28th March 2011, before 12 noon. A Memorandum submitted after 12 noon on Monday 28th March 2011 will receive a fail mark, unless the candidate has received permission from the Examinations Office for late submission on the basis of ill heath or some other exceptional circumstance. Please note that extensions and deferrals will only be granted in strict compliance with the Academic Regulations. The Memorandum of Advice is worth 30 per cent of the total marks available for the module on UK & International Banking Law. The Memorandum of Advice (including any attachments) should not exceed 3,000 words. Please state the number of words on the cover page. As the Memorandum should be drafted and written in a practical style (with numbered paragraphs) it is not necessary to include a bibliography. Please include references to source materials. This assessment is unsupervised. Please start each question on a new page. MEMORANDUM OF ADVICE You are a senior regulatory adviser to the financial services authority (FSA) of Newland. This authority is responsible for supervising all financial institutions within the territory of Newland. Two months ago, the legislature in Newland brought the Basel II Accord (Basel II) into national law. At present, the banks in Newland are busy with the implementation of the requirements of Basel II. Yesterday, the chief executive of the FSA, Dr. John Goldsmith, told you that he had recently been to a meeting in which a Basel III Accord (Basel III) was discussed. Some of the attendees had stated that, in a few years time, Newland would need to implement Basel III. This concerned Dr. Goldsmith, because the FSA was already busy with enquiries, complaints and supervisory commitments relating to the implementation of Basel II. Dr. Goldsmith asks you to advise him on the following issues: 1. the structure and content of the Basel II Accord; [5 marks] 2. what the financial services authoritys role is in providing supervision to banks under Basel II; [2 marks] 3. why the Basel Committee on Banking Supervision (BCBS) introduced Basel III only a few years after it published Basel II; [1 mark] 4. the structure and content of the Basel III Accord; [5 marks] 5. whether or not, and why, you recommend that the legislature in Newland should enact Basel III. [2 marks]

Dr Goldsmith would like to know how states other than Newland are progressing in their implementation of Basel II. Based on your own research, advise him concisely as to the position on this in three other countries. [15 marks]