Dr Philipp Paech NAB7.05

This course is available on the Executive LLM. This course is not available as an outside option.

Available to Executive LLM students only. This course will be offered on the Executive LLM during the four year degree period. The Department of Law will not offer all Executive LLM courses every year, although some of the more popular courses may be offered in each year, or more than once each year. Please note that whilst it is the Department of Law's intention to offer all Executive LLM courses, its ability to do so will depend on the availability of the staff member in question. For more information please refer to the Department of Law website.

This course is a continuation of LL406E. The syllabus for Part II includes the following topics:

Review of Fundamentals of Regulation

Structural Bank Reform

Regulation of Shadow Banking Activities

Hedge Funds and other Alternative Investment Funds

Public Investment Funds (UCITS)

Credit Rating Agencies

Securities Regulation (Trading)

Securities Regulation (Clearing and Settlement)

Personal Liability of Financial Sector Employees

Derivatives Clearing

Long Term Perspectives for International Financial Regulation

24-26 hours of contact time.

This course examines the regulatory structures governing financial markets and financial services. It covers the main principles of international, EU and UK financial regulation with the aim of developing a critical understanding of the conceptual framework for financial regulation. This half unit focuses on financial stability, including macro and micro-prudential regulation, regulation of trading and market infrastructure, and on new and emerging issues in financial regulation.

The course does not aim to provide a detailed comparative account of financial regulation across countries, but international comparisons may be made where these are useful. In this context, students are encouraged to draw on their knowledge of their own national systems of regulation in making comparisons, and to apply the analytical perspectives suggested to those systems. The focus will be on the regulation of national and international aspects of financial services and markets, rather than on private law and transactional aspects.

No previous knowledge of financial market regulation or background in economics is required for those wishing to follow this course. Indeed, the course provides a good background for further study of both financial and economic law and economic analysis of law. For non-lawyers, a willingness to engage in legal analysis will be necessary, although a legal background is not required. The course might be regarded as complimentary to a number of other courses, including Law of Corporate Financeor International Financal Law and Practice I & II.

The syllabus for Part II includes the following topics:

• What is financial stability?

• Macro-prudential supervision- emerging strategies & techniques

• Micro-prudential supervision & the Basle capital adequacy regime

• Crisis Management & Bank Resolution

• Public safety nets and the problem of moral hazard

• Regulating Credit Rating Agencies

• Regulating Hedge Funds

• Regulating Derivatives and derivative markets

• Regulation of Market Infrastructure

Students will have the option of producing a formative exam question of 2000 words to be delivered one month from the end of the module’s teaching session by email.

A full reading list will be distributed during the course and essential materials will be made available to the students, where possible. In addition, the students will be invited to do independent reading. Good general introductions to financial markets and their regulation include: A Turner et al, The Future of Finance: The LSE Report (2010); S Valdez and P. Molyneaux, Introduction to Global Financial Markets (7th edn).

Either a take-home examination or 8,000 word assessed essay (100%).