STRATHMORE

LAW SCHOOL
BACHELOR OF LAWS
END OF SEMESTER EXAMINATION
SLS 3231: FINANCIAL SERVICES LAW

DATE: 9TH MARCH 2020 TIME: 2 HOURS

INSTRUCTIONS
1. This examination consists of FIVE questions.
2. Answer Question ONE (COMPULSORY) and any other TWO questions.
3. Write legibly, marks will be lost for illegibility.
4. Read each Question carefully before attempting an answer.

QUESTION ONE (COMPULSORY QUESTION)

The duty of confidentiality, due to numerous changes in banking practice and increase of various new
crimes, is subject to inter alia, statutory provisions, actions of government institutions, court orders
etc. In fact, at present this duty does not exist in its original form introduced by the English appellate
court years ago. Discuss this statement. (30 marks)

QUESTION TWO

Lemmy recently imported a Subaru Forester from Tanzania. The year of manufacture of the vehicle
is 2009. Kenyan legislation prohibits the import of cars older than 7 years and Lemmy is aware of
this and has not yet registered the vehicle in Kenya. He is looking to complete a standard insurance
form and is considering whether to disclose the year of manufacture of the car and its registration
status. Discuss Lemmy’s legal obligation in this set of circumstances. (15 marks)

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QUESTION THREE

“The relation between banker and customer is that of debtor and creditor, with a superadded
obligation on the part of the banker to honour the customer’s cheques if the account is in credit”.
Discuss this statement. (15 marks)

QUESTION FOUR

According to the Basel Institute Anti‐Money Laundering Index of 2019, Kenya is ranked the 7th
riskiest country. The index is used to identify countries exposure to money laundering based on, inter
alia, the strength of their legal framework. Discuss the importance of Kenya’s need to strengthen its
legal structures in relation to anti‐money laundering and the current regulation of the crime.

(15 marks)

QUESTION FIVE

Discuss the four main components of the financial markets, giving examples and their regulation in
Kenya. (15 marks)

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