Master degree in Law. This course is part of the Advanced Master Law and Finance.
Over the past two decades, regulation of financial institutions and financial markets has increased dramatically. Financial markets are highly regulated in order to protect the integrity of the markets and the interests of investors in those markets.
This course comprises the first course of the core curriculum of the Advanced Master. It focusses on the legislative and regulatory aspects of the area of law and finance and aims to give an overview of the current regulatory architecture relating to banking and capital markets. Attention will be paid to the most important sources of EU financial law and the specific EU architecture of legislative instruments via the Lamfalussy Process. The course will explain the rationale of financial legislation, also in view of the Global Financial Crisis, and the status of the various international bodies (Basel Committee on Banking Supervision, Financial Stability Board, IOSCO) as sources of legislative measures. Also it will go into financial regulatory supervision by national competent authorities and the role of the European Supervisory Authorities in this proces.
The course will explain the function of the primary market as a means of financing for companies on the public market and the regulatory aspects thereof. It will also go into the rules that apply to trading in financial instruments which have already been issued on trading venues (the secondary market). The role of various key players on the primary and secondary markets will be discussed: banks, investment firms and investment funds. Banks, investment firms, investment funds and other financial institutions are subject to detailed obligations such as capital requirements, duties of care towards their clients, and disclosure requirements. Also, a short introduction will be given to the resolution of banks, by discussing the Bank Recovery and Resolution Directive (BRRD), the Single Resolution Mechanism (SRM) and the Winding-up Directive. Finally, the course will discuss future developments due to digitilisation and its possible impact on financial regulation, more in particular payment services.
The focus of this course will be on financial regulation, therefore attention will be devoted primarily to, inter alia, MiFID (I/II), MiFIR, CRD IV, CRR, the Prospectus Regulation and SSMR, BRRD and SRM.
Course learning objectives
The following achievement levels apply with regard to the course.
Students obtain thorough knowledge and understanding of the European legislative process regarding financial legislation and are able to distinguish between the different sources, kinds and levels of financial legislation (e.g.g Lamfalussy process);
Students obtain thorough knowledge and understanding on the rationale of financial regulation and the international sources of financial regulation.
Students obtain thorough knowledge of the European system for financial regulatory supervision, including the various models of supervision, the tasks and powers of competent authorities and the role of the European Supervisory Authorities;
Students understand the role of the primary market as a means of financing of companies and will be able to apply rules relating to the primary markets.
Students understand the rules relating to the orderly functioning of the secondary market for trading financial instruments on trading vennues.
Students obtain a thorough knowledge and understanding of investment firms: their authorisation requirements, capital requirements, organisational requirements and conduct of business rules;
Students obtain a thorough knowledge and understanding of banks: their authorisation requirements and prudential rules, as well as the resolution of EU banks in the event of a bank failure;
Students obtain a thorough knowledge and understanding of investment funds: their authorisation requirements, capital requirements, organisational requirements and conduct of business rules.
Mode of instruction
Number of (2 hour) lectures: 5
Names of lecturers: Prof. Dr. Matthias Haentjens; Prof. Dr. Rogier Raas; Prof. Dr. Pim Rank; Ms. Peggy Bracco Gartner.
Required preparation by students: reading of prescribed materials
Number of (2 hour) seminars: 5
Names of instructors: Prof. Dr. Matthias Haentjens; Prof. Dr. Rogier Raas; Prof. Dr. Pim Rank; Ms. Peggy Bracco Gartner.
Required preparations by students: reading of prescribed materials, preparation of case studies and any other assignments. A student can not be absent from the seminars.
Week 1 – Sources of EU financial law
Week 2 – Regulation and supervision
Week 3 – The primary market
Week 4 – Financial institutions: investment firms
Week 5 – Financial institutions: investment firms
Week 6 – The secondary market
Week 7 – Financial institutions: banks
Week 8 – Financial institutions: banks
Week 9 – Financial institutions: collective investment schemes
Week 10 – Future developments & exam training
Written assignment: 30%
Final exam: 70%
The final exam will cover all the material delivered during the lectures and the seminars. Information about the exam will be given to the students closer to the exam date.
The final grade, on the scale from 1(poor) to 10 (excellent), for the course is established by determining the weighted average and rounded to full grades. Grade 6 (5.5 rounded) is a pass.
The opportunity exists to re-take the exam. Further information will be communicated through Blackboard.
Course reader and additional literature is distributed through Blackboard.
Submission of papers via Blackboard using safe assignment.
Haentjens & De Gioia-Carabellese, European Banking and Financial Law, London: Routledge 2014.
Additional literature will be made available to students through Blackboard.
Course reader is available to be downloaded from Blackboard.
Ms. M.E.J. Bracco Gartner
Email address: firstname.lastname@example.org
Ms. Orsolya Kalsbeek-Bagdi
Email address: email@example.com