Legal Aspects of International Finance

Teaching hours and credit allocation: 16 hours, 3 credits

The aim of this module is to provide the students with a concrete knowledge of the law relating to international finance. Financial law has a major impact on modern economies because the amounts involved in international finance are truly enormous (financial flows are much bigger than trade flows). General principles of the regulation of international finance, as well as specific transactions and parts of international financial markets will be discussed. Some of these are title finance, financial supervision, derivatives, securitizations, payment and securities settlement systems. Moreover, this module aims at scrutinizing the legal foundations of retail and investment banking, the role financial institutions and the significance of credit. Understanding this area of law is particularly important, especially after the Global Financial Crisis. This course is addressed to students who are concerned with international financial law on a global scale. The legal aspects of international finance are particularly attractive for all lawyers dealing with complex financial transactions and credit. This module offers a thorough analysis of financial policies, of legal solutions adopted by the legislature and of structure of specific financial transactions. Reference is made to detailed jurisdictions and comparative conclusions are drawn, wherever it is necessary.

Learning outcomes

On completing the course students will be able to:

  • Understand the structure of international finance
  • Discern which aspects of international finance are crucial from a legal point of view
  • Understand the legal aspects of the global financial crisis
  • Understand the identity and the basic characteristics of the various financial transactions
  • Understand how international financial transactions are conducted
  • Understand that many areas of international finance are interconnected
  • Understand how global capital markets operate.
  • Be able to deal with specific legal problems of international finance.
  • Use synthesis and distillation for answering complex financial law questions.
  • Understand the differences between jurisdictions with regard to finance
  • Understand the provision of credit, as well as the role of the main actors in the field of international finance, i.e. financial institutions and banks.

Content

  • Introduction-financial assets, banks, financial institutions and the role of credit
  • Comparative aspects of international finance: Legal families-various jurisdictions.
  • International finance and insolvency
  • International loans and bonds.
  • Syndicated bank loans
  • Covenants, negative pledge, pari passu clause, restrictions on disposals, financial covenants.
  • Events of default and various clauses
  • Loan transfers and participations
  • International bond issues
  • Special purpose finance
  • Set-off and netting
  • Mutuality and interveners
  • Security interests
  • Title finance
  • International finance and trusts
  • Financial regulation: general regulatory policies and scope
  • Regulation of conduct of investment business
  • Prospectuses: regulatory issues
  • Insider dealing, market abuse and other investment frauds
  • Capital adequacy-financial supervision
  • Legal aspects of derivatives.
  • Securitizations
  • Payment and securities settlement systems
  • Private international law-Governing law of financial contracts-Judicial jurisdiction.