QUESTION $1$

The regulatory regimes within the Caribbean, UK and USA are still under development.

$($a$)$ List and explain the main components of the 'Rule' that prohibits financial

institutions, from engaging in proprietary trading and investing in a hedge fund or

private equity fund.

$(5$ marks$)$

$($b$)$ Propose a reform measure which can be used to address issues of innovation and the

emergence of FINTECH companies.

$(5$ marks$)$

$($c$)$ Regulatory reform must be based on effective Regulatory Principles. Outline and

explain the most important factors government should focus on in order to reduce

externalities, as outlined in the Dodd Frank Act of $2010.$

QUESTION $2$

Deposit insurance system is an important regulation for a healthy banking system.

a$)$ Explain how deposit insurance can be used as a resolution method.

$(4$ marks$)$

b$)$ Discuss the rationale for deposit insurance.

$(4$ marks$)$

c$)$ Distinguish between explicit and implicit insurance deposit.

$(4$ marks$)$

d$)$ List and evaluate the factors$/$ preconditions which must be assessed prior to setting up

a deposit insurance system and discuss why these preconditions are necessary? $(8$ marks$)$

QUESTION $3$

On August $6,2018$ a three$-$count indictment was unsealed in federal court in Brooklyn charging

Donville Inniss, a former member of the Parliament of Barbados and the Minister of Industry,

International Business, Commerce and Small Business Development of Barbados, with

conspiracy to launder money and money laundering.

According to the indictment, between August $2015$ and April $2016,$ Inniss engaged in a scheme

to accept approximately $$36,000$ in bribes from high$-$level executives of an insurance company

headquartered in Barbados $("$the Barbados Company"$)$ and launder that money through the

United States. In exchange for the bribes, Inniss leveraged his position as the Minister of

Industry to enable the Barbados Company to obtain two government contracts. Inniss

concealed the bribes by arranging to receive them through a dental company and a bank located

in Elmont, New York. Barbado