Question 1Explain why internationally agreed standards of regulation are important in certain areas of GRC, highlighting the benefits of having these in place at both an international and jurisdictional level. Support your answer with relevant examples.Question 2Select two regulatory structural models and compare and contrast the practical implications of operating under each structure for:• regulators• regulated businesses.Provide appropriate examples to support your comments.Question 3Illustrate, through the use of examples, the possible risks and subsequent consequences that are likely to impact in a sector of your choice if firms regulated in that sector are used for money laundering purposes.(10 marks)Why is establishing a robust compliance culture within a regulated firm both important and necessary? With reference to a firm regulated in a sector of your choice, discuss this issue, demonstrating your understanding of what a ‘compliance culture’ is and what is to be gained from its establishment.(10 marks)Question 5a) Describe the difference between breaches of procedure and material compliance breaches, and the implications for regulated firms of each.(6 marks)b) Writing with reference to a firm regulated in a sector of your choice, explain what action would need to be taken if, during routine monitoring, a new member of the monitoring team identified breaches of procedure in an area of business that was considered high risk, including both breaches of procedure and a material compliance breach. Support your answer with relevant illustrative examples.(14 marks)Total 20 marksQuestion 6Andrew, a recently promoted member of the central training team of a firm regulated in a jurisdiction and sector of your choice, has been closely involved in developing a number of induction activities for new employees of that firm. In the current round of training he has been working closely with members of the compliance, risk and assurance teams, focusing on training relating to these areas. He is keen that these maintain the high standards set by his predecessors in the role, particularly in terms of how relevant and well received the content is seen to be. Following a recent training session, he asks to meet with you, a senior member of the regulatory compliance team. At that meeting he says: ‘I had an interesting question today, which I wasn’t able to fully answer, about the differences between the roles of the compliance function and the internal audit department. I appreciate I’ve only been in this role a short time but the differences between these areas of business isn’t one I’ve given much thought to before. I need to follow up on this with the attendees at yesterday’s session but before I do that I think I’d really benefit from your opinion. Can you explain to me what the difference is between the role and function of the compliance and internal audit departments?’a) Discuss your views on this topic, comparing and contrasting in general terms the two areas of business and explaining how these relate to a particular firm.(8 marks)b) Select two activities undertaken by the compliance function and explain the practical benefit they bring to the business on a day-to-day basis. Show how each activity impacts upon and supports the business.(12 marks)Total 20 marksQuestion 7The transparency and accountability of the regulator is crucial to the effectiveness of the regulatory structure, particularly as this relates to how the powers of regulators are viewed by those subject to them.With reference to a sector of your choice and to the above statement, evaluate the objectives of the regulator(s), showing how they use their powers to achieve this and how the regulator’s transparency and accountability is ensured. Relevant examples should be provided in support of the points made.(20 marks)Total 100 marks