Global Comparative Financial Law
Intangibles (financial assets) play a major role in modern economies. Thus the flows through the major payment systems are a substantial multiple of gross domestic product and a much bigger multiple of trade flows. Capital market flows and international bank loans are very large. The securities held by a single internal depository in Brussels exceed the gross domestic product of the United Kingdom and France.
The laws of the several hundred jurisdictions are fragmentary and in some important areas the fragmentation is increasing. There is no doubt that the intricacy is increasing. The result is that world financial law is difficult to grasp and legal risk is great.
However, the law and practice rest upon fundamental principles of contract, property, trusts, security and insolvency, and although their application may seem complex, one of the aims of the course is to show the simplicity of the underlying concepts. The emphasis of the course is on the following: The approach is global and comparative. The course aims at a comprehension of the main principles and policies. The course is reasonably comprehensive in its coverage of debt financial markets. The course aims to cover the actual practices of the markets and the main transactions.
The emphasis is on distillation and synthesis. The course is designed for (1) those who wish to be practitioners so to enhance their ability to deliver transactions globally; (2) those who wish to participate in the formulation of policy in their jurisdictions; (3) those who wish to pursue an academic career at the university level and to make a contribution to the literature; and (4) those who wish to follow other avenues but would like to have a succinct view of this field.
The course is suitable for students from all jurisdictions . It is not necessary to have prior knowledge of financial law.
The main areas studied are: 1. Overview of financial markets and transactions. Participants and institutions. History. Understanding financial law in the world’s legal systems and the core indicators of financial law globally. 2. International bank loans and syndications. 3. International debt capital markets. Principles of securities settlement systems. 4. Impact of insolvency law on markets: comparative survey of the key principles and policies globally. Judicial reorganisations and private reschedulings. State insolvency. 5. Set-off and netting world-wide, especially for derivatives, payment systems and the like. 6. Trusts and their equivalent internationally in the context of international finance, in particular global custodianship of securities, settlement systems, security trustees and bond trustees. 7. Security interests in international finance: comparative review of international principles and policies. Title finance, including repos. Market applications and security packages, including project finance. 8. Special areas, notably derivatives and securitisations. 9. Regulation of international finance and markets. The topics may include relevant conflict of laws aspects.
The course is not concerned with consumer finance.