When students and academics collaborate

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John Consiglio and Simon Grima: A Law Based Financial Services Architecture, Essex, UK, Pearson Education Limited, 2011, 110 pp.

This neatly produced book is the product of sourced work carried out by students of the 2010-2011 class following the Banking Regulation and Banking Law programmes at the Department of Banking and Finance of the University of Malta’s Faculty of Economics, Management and Accountancy.

An important leit motif runs through the work: all change and restructuring in financial services must have at their basis correct legal inspiration- Kevin Aquilina

The authors have tasked themselves with editing the various scripts originated during class-presentations made by students.

In this respect, the work is the result of healthy co-operation between the academic body and the student body and it is for this reason that this joint venture is to be commended. This is what distinguishes this valid contribution from other publications on financial services.

As to style, the book is well-organised: each chapter is divided into numbered sections and each section has its own title. This schematic approach makes the book very readable.

The sub-divisions make it user-friendly to the reader to see how the argument flows from one section to the other. It contains a select bibliography and a number of study questions making it a useful tool for students for whom it is particularly aimed. Each chapter is amply sourced through footnotes and at the end one also finds a list of references for further reading.

The book is divided into an introduction, 10 chapters and a conclusion.

The introduction focuses upon the main themes which are described as being dynamic and problematic: dynamic in so far as several events are taking place in the banking and financial services sector within such a short span of time, sometimes making it difficult to keep abreast with the developments taking place; problematic in the sense that there are several themes to be discussed in the context of banking and finance such that it is not possible to limit the study of these sectors to one set text.

Thus, this contribution entices the reader to read more on these sectors rather than providing all the information needed.

However, the book manages to focus on the main areas of knowledge concerning the banking and finance sectors, with an important leit motif running through the work: all change and restructuring in financial services must have at their basis correct legal inspiration.

The 10 chapters deal with myriad information relevant to the banking and finance world. But looking at the subjects discussed in the volume, one immediately notes that it is very much relevant to persons studying other disciplines such as economics, law, European studies, policy-making, regulation, ethics, politics, labour studies and social policy.

At the same time, the topics covered in this work are neatly knit together, flow naturally and are inter-linked to each other.

In sum, the chapters discuss coherence in a new international financial architecture, law-based reforms with special reference to the case of Iceland and corruption’s undermining of reform, unfettered discretion, non-transparency and cronyism.

Excessive lending and crises, emerging markets and lingering problems as well as transparency, conflict of interest and standards are all current topics discussed in the banking and finance sectors.

A final chapter refers to the legal underpinnings: there can be no viable financial market unless this operates within the confines of the law. Financial regulation and supervision are a must in today’s globalised world.

The conclusion addresses how the more important building blocks that one can hypothesise in the construction of any new financial architecture can hopefully pre-empt or cure crises.

Unfortunately, the words “financial crises” have come to the forefront during these past few years and the hope that they recede to the background does not seem to be much in sight.

The book attempts to envisage a set of basic concepts or rules that should guide the constant process of rebuilding law-based and inspired financial architectures.

Although the book is of primary relevance to students in the Department of Banking and Finance at the University of Malta, it would be an injustice to this book if one limits the readership only to such students.

It is a good read for both the initiated and uninitiated in banking and finance.