Fundamentals of Financial Law (Online/Classroom)

Financial markets rely on legal institutions. Law and regulation ensure that financial transactions are carried out within a clear, predictable and enforceable legal framework. Therefore this course aims to provide a broad overview of the financial system – in particular, the banking system and the capital markets. In doing so, we will examine the role and function of the banking system, analyze the importance of financial law in maintaining the economic system and present the basic components of the legal framework that underpins successful financial systems

The primary aims of this course is to enhance target groups understanding and awareness on basic financial laws so as to comply with the country’s and international business laws related to banking business operations decisions. It shall also provide the participants with essential knowledge about the relationship of substantive (statutory) law and the legal procedures, as well as the method and means by which substantive law is made and administered in financial institutions

Learning Objectives

At the end of this training session, participants will be able to:

• Outline and discuss the importance of financial law for the creation and development of strong financial markets
• Analyze the institutional framework that is necessary for the provision of credit and the operation of financial markets
• Explain and critically discuss the basic legal components of the financial system
• Examine and discuss the key legal problems that relate to the provision of finance and the ways in which financial institutions address such problems
• Critically discuss the legal principles and rules applicable to bank deposits and the relationship between the banker and the customer
• Discuss and analyze the basic legal principles underpinning commercial and international banking transactions
• Identify and critically evaluate the legal risks involved in the process of agreeing and documenting the most basic financial agreement
• Analyze and discuss the basic legal components of the payment systems of key jurisdictions of the world
• Critically evaluate the nature, scope, economic function of security in the provision of finance
• Identify and critically evaluate the systemic risk in the financial market encountered by the financial authority.

Course Contents

Day 1

Financial Law

Introduction

• The Banking System
• Capital Markets
• The Importance of Law for Financial Markets
• The Legal Preconditions for Efficient Financial Markets
• The Institutional Preconditions for Efficient Financial Markets
• Class Assignments to close the day

Day 2

Deposits and Bank Accounts

• Introduction
• Bank Deposits and the Financial System
• The Banker–Customer Relationship
• The Legal Properties of Bank Accounts
• Confidentiality and Data Protection
• The Law of Electronic Banking
• Class Assignment to close the day

Day 3

The Law Relating to Money and Payments

• Introduction to Money and Payments
• The Legal Concept of Money
• The Legal Concept of Payment
• Payments by Bank Transfers
• Payment Systems – Clearing and Settlement

The Law Relating to Loans and Credit

• Introduction to Lending and Bank-Based Finance
• Forms of Credit
• The Loan Agreement and Principal Questions of Law
• The Law Relating to Consumer Lending
• Class Assignment to close the day

DAY 4

The Law of Secured Finance

• Introduction to the Mechanisms of Credit Enhancement
• The Economic Rationale of Secured Finance
• Forms of Security – Pledge, Mortgage and Charge
• Issues of Priority and Enforcement
• Key Considerations

Questions of Liability

• Introduction to the Concept of Liability
• Doctrinal Bases of Liability
• Advice
• Lender Liability
• Class Assignment to close the day

DAY 5

Control of Financial Crisis Case Studies

• Introduction to the 2008–2009 Financial Crisis
• The Northern Rock Banking Crisis
• The Definition of a Failing Bank
• Parmalat Case
• End of Course Examination