Module Description

The purpose of this module is to examine the regulation of financial institutions and markets and to contribute to a critical understanding of the subject matter through the combined study of theories of regulation (law and economics) in general and through the analysis of particular areas of financial market regulation, such as banking, securities and insurance. This subject has become very topical in response to the financial crisis, which has brought the issues of regulation, supervision and crisis management to the forefront of legal, economic and policy debate. The module provides a contextual approach to the study of financial regulation, drawing on a comparative study of the law in relevant financial centres in the US, UK, EU and Japan aswell as on the increasing corpus of international financial ‘soft law’ (such as the Basel rules). Focus is on the public regulation of national, European and international markets, and not on contractual or transactional aspects. Special attention is given to central banking law. The module also considers the dynamics of financial regulation in less developed countries and emerging economies. The module goes beyond the description of the black letter law of the various jurisdictions considered and explains the underlying economic and political forces which bring that law into being.

Module Topics

• Introduction to Financial Markets and Institutions
• The Elements of Financial Supervision
• Theories and Structure of Regulation Banking risk
• Capital Regulation
• Banking crises. Lender of Last Resort and Deposit Insurance
• Banking and Financial Crises. Insolvency and Systemic Risk
• Central Banking. History and Central Bank Functions
• Central Banking Law. The Independence and Accountability of Central Banks
• Institutional Organization of Supervision
• Regulation of Securities Markets (US – EU)
• Regulation of Insurance Companies
• Regulation of Pension Funds
• Regulation of Mutual Funds
• Regulation of Hedge Funds and Alternative Investment Funds
• Regulation of Derivatives Markets
• Takeovers and Mergers
• International Financial Regulation
• Cross-Border Bank Insolvency

Students should note: The module is suitable for students specialising in banking, financial law and in regulation studies and for students choosing commercial law, EU law or international law subjects, who wish to understand the way financial markets are regulated.

Applicable Groupings

• Group A - LLM in Banking and Finance Law
• Group B - LLM in Commercial and Corporate Law
• Group F - LLM in Economic Regulation
• Group J - LLM in International Business Law
• Group K - LLM in Law and Development
• General LLM

Mode of Assessment

3 hour written examination paper