Course requirements
Master degree in Law. This course is part of the Advanced Master Law and Finance.
More information: https://www.universiteitleiden.nl/en/education/study-programmes/master/law-and-finance
Course information
This course comprises the first course of the core curriculum of the Advanced Master. It focusses on the legislative and regulatory aspects for the financial sector and aims to give an overview of the current regulatory architecture relating to financial institutions. 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 address financial regulatory supervision by national competent authorities and the role of the European Supervisory Authorities in this process, including the challenges to regulation and supervision that are posed by new developments such as fintech and sustainability goals (ESG).
Next,the main types of financial institutions will be discussed: banks, insurance companies, investment firms and investment funds. As key players in the financial system, these 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 concerning the resolution of banks by discussing the EU Bank Recovery and Resolution Directive (BRRD), the Single Resolution Mechanism (SRM) and the Winding-up Directive. Finally, the course will discuss payment services and recent developments to prepare financial institutions to meet sustainability goals.
The focus of this course will be on financial regulation for intermediaries on financial markets, therefore attention will be devoted primarily to, inter alia, MiFID, CRD IV, Solvency 2, BRRD and SRM.
Course learning objectives
The following achievement levels apply with regard to the course.
Students can describe the roles and functions of the various financial institutions on the financial markets (banks, insurance companies, investment firms, collective investment schemes, payment services providers and financial innovators) and explain their purpose and relevance for society.
Students understand how the various risks of the business model of financial institutions are reflected in the legislative framework for the financial sector and mitigated by supervision by supervisory authorities of the compliance of the legislative framework.
Students are able to independently assess the strengths and weaknesses of the current legislative framework, both from a legal and economic standpoint, and its ability to deal with financial innovation.
Students can identify the main European instruments of law for financial institutions and are able to apply the relevant rules to a concrete case.
Students are able to individually interpret, argue and conclude a research question in the field of EU financial law.
Mode of instruction
The course will be conducted online in Kaltura live sessions.
Number of (2 hour) lectures & interactive seminars: 20
Names of lecturers: Prof. Matthias Haentjens; Prof. Rogier Raas; Prof. Pim Rank, Dr. Zeeshan Mansoor, Ms Peggy Bracco Gartner LLM.
Required preparations by students: reading of prescribed materials, preparation of case studies and any other assignments.
Course Load
Week 1 – Sources and functions of EU financial law
Week 2 – Regulation and supervision
Week 3 – Challenges to supervision: fintech and sustainability
Week 4 – Financial institutions: investment firms
Week 5 – Financial institutions: investment firms
Week 6 – Financial institutions: banks
Week 7 – Financial institutions: banks
Week 8 – Financial institutions: insurance companies
Week 9 - Financial institutions: collective investment schemes
Week 10 - Financial institutions: payment service providers & sustainability
Examination method
Written assignment: 30%
Final exam: 70%
The final grade, on the scale from 1(poor) to 10 (outstanding), for the course is established by determining the weighted average of the written assignment and final exam and rounded to full grades. Grade 6 (5.5 rounded) is a pass.
The written assignment will require you to write an essay of 2500 words on on one of the topics discussed in the course.
The final exam will be an oral exam. The final exam covers all the material delivered during the lectures and the seminars.
Further information about the written assignment and the exam will be communicated to students through Brightspace closer to the due date and exam date.
Brightspace
Course reader and additional literature is distributed through Brightspace.
Submission of written assignment via Brightspace using Turnitin Assignments.
Course materials
Haentjens & De Gioia-Carabellese, European Banking and Financial Law, London: Routledge 2014.
J. Armour, D. Awrey, P. Davies, L. Enriques, J.N. Gordon, C. Mayer, and J. Payne, Principles of Financial Regulation, Oxford, Oxford University Press 2016
As well as articles and papers specifically assigned per week as set out in the course reader.
Course reader will be available to be downloaded from Brightspace.
Contact
Course Coordinator:
Ms. M.E.J. Bracco Gartner LLM
Email address: m.e.j.bracco.gartner@law.leidenuniv.nl
Programme Coordinator:
Ms. Orsolya Kalsbeek-Bagdi
Email address: lawandfinance@law.leidenuniv.nl
Disclaimer: This course has been updated to the best of our knowledge at the current time of publishing. Due to the Covid-19 pandemic and the fluctuating changes in lock down regulations all information contained within this course description are subject to change up to 1 September 2020.
Due to the uncertainty of the Covid-19 virus after 1 September 2020, changes to the course description can only be made in the event of strict necessity and only in the circumstances where the interests of the students are not impinged. Should there be a need for any change during the duration of the course, this will be informed to all students on a timely basis and will not be to the prejudice of students. Modifications after 1 September 2020 may only be done with the approval and consent of the Faculty Board.