LL206: Introduction to Financial Regulation

How do we safeguard the global financial system from catastrophic failures? This course provides you with an introduction to the detailed and complex framework of financial regulation developed in response to crises like the 2007–08 Global Financial Crisis. That pivotal event exposed vulnerabilities and fragilities in the financial system, sparking sweeping reforms to mitigate ‘systemic risk.’

You will explore the goals and strategies of financial regulation, including its application to financial markets, consumer protection, and banking. A major focus is banking regulation, where you will study key topics like capital and liquidity requirements, bank governance, and bank resolution. The course also covers non-bank financial intermediation and current developments in financial regulation.

By the end, you will gain a comprehensive understanding of the principles underpinning financial regulation and the ability to discuss enduring and emerging challenges. With a global perspective, the course highlights key jurisdictions like the US, the UK, and the EU, equipping you to analyse recent episodes, such as the collapse of Silicon Valley Bank and Credit Suisse’s acquisition by UBS.

This interactive, research-driven course positions you at the forefront of a dynamic and evolving field, preparing you to understand and address today’s challenges in the financial system.

Prerequisites: An introductory law course or a course in a social science subject. Background in finance or economics is not required. No specific knowledge of financial markets or regulation is required although it is helpful. 

Level: 200 level. Read more information on levels in our FAQs

Fees: Please see Fees and payments

Lectures: 36 hours

Classes: 18 hours

Assessment: One examination and one essay

Typical credit: 3-4 credits (US) 7.5 ECTS points (EU)

Please note: Assessment is optional but may be required for credit by your home institution. Your home institution will be able to advise how you can meet their credit requirements. For more information on exams and credit, read Teaching and assessment

This course is ideal for those seeking to develop a comprehensive understanding of financial regulation. It is particularly suited to individuals pursuing or targeting careers in the private financial sector, legal practices specializing in finance, government or governmental agencies (especially treasuries and ministries of economy, finance, or justice), central banks, international organizations, EU institutions and agencies, as well as non-governmental organizations and advocacy groups active in the field of financial regulation. 

The course will enable students to understand, analyse, and discuss the goals, strategies, and content of financial regulation while staying informed about the latest regulatory and market developments — without the need to navigate the complexities of highly technical provisions.

The learning outcomes of this course are as follows:

• Understand the theoretical foundations and principles of financial regulation

• Map the relevant areas of financial regulation

• Identify specific regulatory issues that have been addressed or remain to be addressed and evaluate regulatory responses

• Describe significant international and key national initiatives

• Critically assess the robustness of financial regulation and the new ways in which financial regulation has been applied to address emerging challenges

The design of this course is guided by LSE faculty, as well as industry experts, who will share their experience and in-depth knowledge with you throughout the course.