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 for the financial sector and aims to give an overview of the current regulatory architecture relating to banks 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 address financial regulatory supervision by national competent authorities and the role of the European Supervisory Authorities in this process.
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 provide an overview of 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 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 developments in opening the market to new payment services providers.
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 can identify the main international and European instruments of law for the financial markets. Students can describe the regulatory elements of the relevant instruments of law and their purpose and explain the interrelation between these elements and other instruments of law, respectively.
• Students are able to independently assess the strengths and weaknesses of the current legislative framework, both from a legal and economic standpoint.
• Students can give an overview of the main features of banking law and capital markets legislation and explain its economic purpose and its relevance for society.
• Students can describe the roles and functions of the various actors (governments, banks, investment firms and collective investment schemes) on the financial markets and are able to assess the various risks of the business model of these actors. Students show how these risk may be mitigated by a correct application of the relevant instrument of law.
• Students are able to individually interpret, argue and conclude a research question in the field of EU financial law.
Mode of instruction
Lectures & seminars
• Number of (2 hour) lectures & seminars: 20
• Names of lecturers: Prof. Dr. Matthias Haentjens; Prof. Dr. Rogier Raas; Prof. Dr. Pim Rank, Dr. Zeeshan Mansoor LLM, Ms Peggy Bracco Gartner LLM.
• Required preparations by students: reading of prescribed materials, preparation of case studies and any other assignments.
Week 1 – Sources and functions of EU financial law
Week 2 – Regulation and supervision
Week 3 – Primary market
Week 4 – Financial institutions: investment firms
Week 5 – Financial institutions: investment firms
Week 6 – Secondary market
Week 7 – Financial institutions: banks
Week 8 – Financial institutions: banks
Week 9 – Financial institutions: collective investment schemes
Week 10 – Financial institutions: payment service providers & evaluation and wrap-up
• 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 (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 students to write an essay of 2500 words on on one of the topics discussed in the course.
The final exam will cover 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 Blackboard closer to the due date and exam date.
Course reader and additional literature is distributed through Blackboard.
Submission of written assignment via Blackboard using safe assignment.
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 is available to be downloaded from Blackboard.
Ms. M.E.J. Bracco Gartner LLM
Email address: email@example.com
Ms. Orsolya Kalsbeek-Bagdi
Email address: firstname.lastname@example.org