Each teacher for the next year's courses selects 2 or 3 titles that are relevant to that course. The Director of Studies collects and distributes the list to students in the late spring.
Students read what they are interested in.
I like the fact that students can choose from a variety of books that usually relate to the next year's course. However, I regret that we do not require summer reading. Apparently the rationale here is that we have a great deal of difficulty including new students in the program if it is mandatory.