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Innovation vs. insolvency: is storing financial assets on decentralized blockchain networks worth the risk? Law and Financial Markets Review Pub Date : 2024-04-03 James S. Welch
While the financial industry invests significantly into blockchain technology, there remain serious questions surrounding the implementation of blockchain for the storing and exchange of large-scal...
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Climate change: risks and recommendations for companies and their boards illustrated by an analysis under Swiss law Law and Financial Markets Review Pub Date : 2024-03-26 Marie-Cristine Kaptan
Climate litigation against companies has increased significantly in the past couple of years. At the same time, regulation with respect to climate change is developing rapidly, such that it may be ...
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ESG compliance in lending: the role of EBA guidelines and civil liability in Belgian banking Law and Financial Markets Review Pub Date : 2024-03-24 Niels Rogge
In Belgium, banks granting credit are legally obliged to assess the creditworthiness of applicants based solely on their financial strength. Previous instances of incorrect assessments, such as ext...
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A behavioural law and economics approach to sustainability information Law and Financial Markets Review Pub Date : 2024-03-22 Aline Darbellay
Mandatory disclosure is a traditional tool of corporate governance and securities regulation. The growing field of sustainable finance regulation has taken up the issue of corporate sustainability ...
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Regulating crypto Law and Financial Markets Review Pub Date : 2024-02-28 Saskia Hufnagel, Colin King
Published in Law and Financial Markets Review (Vol. 16, No. 3, 2022)
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The nexus of customer behaviour, corporate perception and banking: Australian perspective Law and Financial Markets Review Pub Date : 2024-02-14 Muhunthan Jayanthakumaran, Nagesh Shukla, Ghassan Beydoun
The Australian Hayne Royal Commission (2017–2019) inquired into misconduct within the banking, superannuation, and financial service sectors. Existing literature produced mixed results with regards...
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Cash, accounts, and central bank digital currencies: a legal view on the introduction of account- and token-based digital central bank money Law and Financial Markets Review Pub Date : 2024-02-12 Martin Miernicki
The introduction of a new form of digital central bank money (Central Bank Digital Currency – CBDC) is actively discussed in the Eurozone. This paper explores different design features of retail CB...
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Legal regulation of the currency exchange market in Iran: a Hayekian analysis Law and Financial Markets Review Pub Date : 2024-01-01 Matin Pedram
Hayek contends that good money is not available when the central bank is under political pressure, and the government dictates its decisions. As an illustration, the Central Bank of Iran, in accord...
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Smart contracts: to regulate or not? Global perspectives Law and Financial Markets Review Pub Date : 2024-01-02 Pınar Çağlayan Aksoy
Smart contracts continue to formulate the backbone of blockchain transactions. After the foundation of the Ethereum protocol, the Initial Coin Offerings, Security Token Offerings, and Non-Fungible ...
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Crypto payments – a danger to consumer protection? Law and Financial Markets Review Pub Date : 2023-11-30 Louise Damkjær Christensen
The original intended function of bitcoin was as a means of payment, but this has turned out to be just one utility of the underlying technology – cryptography. This article goes back to the initia...
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Regulating virtual asset service providers in the offshore world: the Cayman Islands example Law and Financial Markets Review Pub Date : 2023-11-30 Andrew James Perkins
This article will seek to firstly, outline the reasons why virtual asset service providers have embraced trading offshore. Secondly, it will evaluate the Cayman Islands legislative regime under the...
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The economic law of (central bank) digital currency Law and Financial Markets Review Pub Date : 2023-11-06 Filippo Zatti
The digital transformation of money has raised concerns about how it affects sovereignty. The rise of cryptocurrencies and the possibility of global payment systems based on stablecoins and digital...
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Regulation of the US credit rating industry and regulatory data disclosures Law and Financial Markets Review Pub Date : 2023-09-18 Jerry Lu, Gina Nicolosi, Lei Zhou
The Credit Rating Reform and Dodd-Frank Acts significantly increased US credit rating regulation, yet few academic studies have examined their impact or capitalized on the regulatory disclosure dat...
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Is the syndicated loans market ready for distributed ledger technology? Law and Financial Markets Review Pub Date : 2023-09-18 Hüseyin Can Aksoy
The syndicated loan market has a centralised nature dominated by intermediaries. Such a structure not only requires manual labour and back-office workloads, but it is also prone to human error and ...
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Editorial Law and Financial Markets Review Pub Date : 2023-08-21 Geraint Howells
Published in Law and Financial Markets Review (Vol. 15, No. 3-4, 2021)
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Revisiting the takeover efficiency argument and the role of the board Law and Financial Markets Review Pub Date : 2023-08-18 Francis A. Okanigbuan
ABSTRACT Despite the synergistic objective of takeovers, shareholders of acquiring companies can experience loss or limited gains when acquisitions are concluded with high takeover premiums. This article argues that, since takeover premiums are determined by acquiring management boards, and losses to shareholders are unlikely to be remedied via breach of directors’ duty, it is desirable to challenge
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Financial law in the era of artificial intelligence: key topics and themes Law and Financial Markets Review Pub Date : 2023-07-06 François Barrière
ABSTRACT The digital transformation of financial services is underway. In financial law, AI is already in a prominent position among the newly available tools, and its future uses are even more promising. However, this raises several certain issues, including legal ones. Legal experts, business divisions, data scientists and computer scientists need to anticipate these changes and establish interdepartmental
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Digital payments system and market disruption Law and Financial Markets Review Pub Date : 2023-05-26 Andrea Miglionico
The traditional banking functions of lending, deposit-taking and payment intermediation are being unbundled in the new frontiers of money that extend from virtual currencies to crypto-assets and fr...
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Public choice and private contracting in financial markets Law and Financial Markets Review Pub Date : 2023-05-21 M. Konrad Borowicz
In this article, I propose that high levels of concentration in markets make the production of standardised contracts in those markets more likely to be captured by the dominant players creating op...
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Prospects for international financial deglobalisation and its potential impact on international financial regulation Law and Financial Markets Review Pub Date : 2023-05-16 Iris H.-Y. Chiu
The prospects of deglobalisation have been discussed in relation to international trade and finance, and this article queries how recent geopolitical risks may affect the shape of international fin...
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Central bank digital currencies: policy implications Law and Financial Markets Review Pub Date : 2023-05-10 Daniel Broby
This paper lists fifteen key policy implications resulting from a decision to introduce retail and/or wholesale central bank digital currencies (CBDCs). It makes the distinction between ‘medium of ...
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Technology and the future of the retail bond markets – an Australian perspective Law and Financial Markets Review Pub Date : 2023-05-10 Ian Paterson
ABSTRACT Debt capital markets may provide useful investment opportunities for retail investors. Technological developments will continue to shape how those markets are intermediated and pose questions as to how they should best be regulated. The article considers the role of technology in reducing risks inherent in debt markets and how it might be applied to maintaining or improving existing standards
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Making robo-advisers careful? Duties of care in providing automated financial advice to consumers Law and Financial Markets Review Pub Date : 2023-04-17 Jeannie Marie Paterson
ABSTRACT 'Robo-advisers' are digital tools that provide automated, personalised advice to consumers. The uses of robo-advisers, and the sophistication of the technologies behind them, are growing. One field in which robo-advisers have already become prominent is financial services, where they are being used to provide credit, budgeting, insurance and investment advice. Professional advisers are subject
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A history of continuous power delegation: the establishment and further development of the European system of Financial Supervision Law and Financial Markets Review Pub Date : 2023-04-03 Beatriz Brunelli Zimmermann, Christopher P. Buttigieg
International and Regional Regulatory Institutions (IRIs) have, throughout history, been created and reshaped by crises. This article argues that this phenomenon can be explained through rational c...
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Decentralized Autonomous Organizations (DAOs) under English law Law and Financial Markets Review Pub Date : 2023-02-20 Michael Anderson Schillig
The paper discusses whether and to what extent the key constituencies of a ‘typical’ DAO can be qualified as a partnership under English law. It explores the defining features of a ‘typical’ DAO an...
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Crowdfunding credit services under the new proposal for a new Directive on Consumer Credits Law and Financial Markets Review Pub Date : 2023-02-18 Karin Sein
ABSTRACT The article analyses some of the core rules suggested for crowdfunding credit services in the proposal of the new Consumer Credit Directive, concentrating on the information obligations towards consumers, the obligation of creditworthiness assessment, and the newly introduced principle of non-discrimination. It concludes that whereas the suggested rules would help to raise the consumer protection
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Using distributed ledger technologies for bond issues – a primer Law and Financial Markets Review Pub Date : 2023-02-16 Catarina Saramago
Distributed ledger technologies (DLTs) are expected to disrupt the corporate finance field by offering a cheaper, quicker and simpler funding alternative for companies, thus playing a relevant role...
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Small credit through online platforms Law and Financial Markets Review Pub Date : 2023-02-08 Peter Rott
ABSTRACT Small credit through online platforms bears the risk of excessive interest rates, high hidden costs and ruthless debt collection practices. At the EU level, they are partly unregulated, whereas Member States have taken specific measures to manage the risk or avail of general concepts of law that can be applied to small credit. Using specific credit offers for the sake of illustration, this
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Algorithms, credit scoring, and the new proposals of the EU for an AI Act and on a Consumer Credit Directive Law and Financial Markets Review Pub Date : 2023-02-03 Gerald Spindler
ABSTRACT Credit scoring is one of the main applications of Artificial Intelligence technology in the financial world. However, there are scarcely any regulations which deal with AI. The new proposal of an AI Act of the EU Commission may change this landscape in a significant way. The article deals with the impact of the proposed AI Act regarding credit scoring, considering also existing banking regulation
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Tokenised funding and initial litigation offerings: the new kids putting third-party funding on the block Law and Financial Markets Review Pub Date : 2022-12-20 Julien Chaisse, Jamieson Kirkwood
This article presents a critical assessment of how blockchain technology is disrupting the monetisation of litigation claims through tokenization – and consequently further shaking up a revolutiona...
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Digitalising the state monetary system: national implementation model Law and Financial Markets Review Pub Date : 2022-12-16 Imeda Tsindeliani, Karina Anisina, Oksana Babayan, Inessa Bit-Shabo, Ekaterina Kostikova, Elena Migacheva
The purpose of the study is to identify the features of Russia’s monetary system digitalisation, including an analysis of the national model and approaches to the introduction of digital currency o...
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Robo-advisory services and investor protection Law and Financial Markets Review Pub Date : 2022-12-13 Reinhard Steennot
ABSTRACT Technological advancement has created the possibility of providing investment advice and managing funds without any, or with only limited, human intervention (so-called robo-advice). In this paper, it is argued that robo-advisory services offer additional protection to retail investors since they – contrary to execution only services provided by online brokers – require a suitability test
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The proposal for a new EU Consumer Credit Directive: towards responsible lending in the digital age? Law and Financial Markets Review Pub Date : 2022-12-11 Olha O. Cherednychenko
ABSTRACT Large-scale irresponsible consumer credit lending across the EU, along with the growing digitalisation of the market place, in the last decade or more has exposed serious limitations of the 2008 Consumer Credit Directive in ensuring adequate consumer protection in the unsecured credit markets. To remedy the shortcomings of the current regulatory regime, the European Commission’s Proposal for
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Editorial Law and Financial Markets Review Pub Date : 2022-08-19 Vincenzo Bavoso, Michael Galanis, Geraint Howells
Published in Law and Financial Markets Review (Vol. 15, No. 1-2, 2021)
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DLT-based enhancement of cross-border payment efficiency – a legal and regulatory perspective Law and Financial Markets Review Pub Date : 2022-06-15 Dirk A. Zetzsche, Linn Anker-Sørensen, Maria Lucia Passador, Andreas Wehrli
ABSTRACT Financial law and regulation have, to date, assumed that regulated activities and functions are concentrated in a single legal entity responsible and accountable for operations and compliance. Even with regard to financial market infrastructure where the regulatory perspective acknowledges the need for interoperability of many entities as a system, each entity is subject to its own rules and
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Policy proposal trends in sovereign debt restructuring Law and Financial Markets Review Pub Date : 2022-05-27 András Póra
ABSTRACT Possible reform of the global sovereign debt management framework is continuously discussed among the members of the policymaking community. After the evaporating Washington Consensus, several reform proposals were made. Some of them were realised, and others remained on paper. The area received new impulses after the Financial Crisis in 2008, mainly due to the European sovereign debt problems
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Of standards and technology: ISDA and technological change in the OTC derivatives market Law and Financial Markets Review Pub Date : 2022-05-04 Pierre Schammo
ABSTRACT For enthusiasts, distributed ledger technology (DLT) and smart contract technology (SCT) promise a future of frictionless interactions and decentralisation. In practice, however, it is widely acknowledged that this vision faces significant challenges. These include legal challenges, technological challenges, but also implementation challenges. The latter arise because delivering the DLT/SCT
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Some policy issues surrounding the use of FinTech in public procurements Law and Financial Markets Review Pub Date : 2022-05-01 Bryane Michael, Nataliya Korolevska
ABSTRACT FinTech – along with the blockchain, other distributed ledger, smart contract, and tokenization usually assumed to accompany it – could change the way governments procure goods and services. Yet, both the academic and practitioner literature omits discussion of any policy-level analysis of the interaction between procurement rules and FinTech innovations. Procurement authorities and procurement
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Institutional architecture for financial supervision: a case study Law and Financial Markets Review Pub Date : 2020-12-29 Christopher P. Buttigieg, Mark Bamber
ABSTRACT The paper examines the institutional architecture for financial supervision of a small jurisdiction and proposes reforms with a view of achieving more efficient and cost-effective financial supervision. The central argument of the paper is that there are complementarities and information synergies between prudential financial supervision, which aims at safeguarding the integrity and stability
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EU Regulatory Developments Law and Financial Markets Review Pub Date : 2020-12-28 Joachim Richter
(2020). EU Regulatory Developments. Law and Financial Markets Review: Vol. 14, No. 4, pp. 261-273.
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Trade finance in Qatar: blockchain and economic diversification Law and Financial Markets Review Pub Date : 2020-10-01 Andrew Dahdal, Jon Truby, Husam Botosh
Trade finance helps businesses deal with abnormal cash flows whilst managing counterparty risk and enhancing confidence in commercial transactions. It also allows parties to overcome trust barriers that may inhibit commercial activity in both a domestic and international commercial context. Globally, particularly among micro, small and medium enterprises (MSMEs), there exists a significant and widening
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The impact of data breaches on corporations and the status of potential regulation and litigation Law and Financial Markets Review Pub Date : 2020-10-01 Tim Klaus, Brian Elzweig
Data breaches can have large effects on organizations as their information systems are compromised. This paper examines data breaches and the impact of data breaches on the stock price of corporations. Furthermore, this paper examines the regulatory framework of data breaches and both legal issues and the impact of cases in this area. The findings are summarized and future research in this area is
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REMIT: ten years and counting Law and Financial Markets Review Pub Date : 2020-09-21 Liebrich M. Hiemstra
Trading in energy derivatives is subjected to a fragmented regulatory framework which is largely designed for capital markets. Since 2011, a tailor made regime for the energy sector is in place; REMIT. Market participants need to find their way in this diverse set of obligations and prohibitions. This article describes the regulatory paradigm to which market participants need to adhere and the practical
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AFCA: the first foothill between Australia’s Twin Peaks Law and Financial Markets Review Pub Date : 2020-09-15 Andrew Schmulow, Dore Virginia, Reardon Jacob, Hanna William
This paper traces the establishment of the new Australian Financial Complaints Authority (AFCA). It places this development within the wider context of what we argue is an important new adjunct to the Australian financial regulatory architecture, and by implication therefore, the international significance of these reforms to countries that have adopted the Australian “Twin Peaks” model. By reference
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EU regulatory developments Law and Financial Markets Review Pub Date : 2020-07-02 Joachim Richter
Regulation (EU) 2020/873 amending the Capital Requirements Regulation (CRR) as regards adjustments in response to the COVID-19 pandemic has been published in the Official Journal. Specific amendmen...
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Hail the new private debt machine: private equity, leveraged loans, and collateralised loan obligations Law and Financial Markets Review Pub Date : 2020-07-02 Vincenzo Bavoso
The Covid-19 pandemic and the subsequent worldwide economic slowdown have exposed the fragility of the financial sector, among others. This article argues that the seeds of this fragility, while being exposed by the pandemic, were sown earlier, in the post-2008 years, through the revived synergy of three elements of the financial system: private equity firms ascending the role of ultimate intermediaries
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Will the COVID Pandemic Spark a Return in GFC-Type Financial Market Litigation? Law and Financial Markets Review Pub Date : 2020-07-02 Joseph Heller, Gene Phillips
Institutional and retail investors alike litigated extensively after the 2007–2009 Global Financial Crisis (“GFC”), alleging claims for misconduct of all varieties, resulting in settlements amounting to tens of billions of dollars. Many of these same claims may return during and in the aftermath of the current crisis, the COVID-19 pandemic. Although the exact financial instruments at issue may differ
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Non-bank financial intermediation in Malta Law and Financial Markets Review Pub Date : 2020-06-07 Christopher P. Buttigieg, Mariana Gkoutse, Theresa Fenech
The paper presents a first estimate of the size of the non-bank financial intermediation (NBFI) in Europe's smallest member state as well as the regulatory implications for its monitoring. The assessment is based on the narrowing-down approach introduced by the Financial Stability Board. Results show that although the broad measure of NBFI is large, the actual NBFI perimeter is rather small, dominated
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Short-run performance evaluation of under-priced Indian IPOs Law and Financial Markets Review Pub Date : 2020-05-26 B. R. Manjunath, J. K. Raju, M. Rehaman
The under-pricing of Initial Public Offerings (IPO) speaks to one of the inconsistencies seen in essential markets (primary market) worldwide, however, the profundity and broadness of its shift from nation to nation. In this context, the study is a posteriori analysis of the short-run performance of Indian IPOs in the National Stock Exchange (NSE). The study aims to determine the relationship between
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Critical review of the international and contractual measures for optimal restructuring Law and Financial Markets Review Pub Date : 2020-05-15 Ferdous Rahman
Due to time constrain and uncertainties in getting payment through litigation, the sovereign creditors and the debtor prefer restructuring to litigation upon default. However, all the creditors may not agree on restructuring. Some of them may go for enforcement despite the detrimental effects on the restructuring process. After the experience of the sovereign debt crisis in several states, many legislative
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How exceptional is Australian financial sector misconduct? The Hayne Royal Commission revisited Law and Financial Markets Review Pub Date : 2020-04-02 John Singleton, James Reveley
By failing to consider that the types of financial misconduct witnessed in Australia in recent years are relatively commonplace in other countries, the Hayne Royal Commission exaggerates the level of miscreance within the local financial sector. This paper seeks to rectify this neglect by offering an explicit comparison of misconduct in Australian and major British and American banks. It also suggests
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Choice of law and jurisdiction in banking and finance contracts after Brexit: a perspective from Europe Law and Financial Markets Review Pub Date : 2020-04-02 Oriol Espar, Jesús Castell
English law is the preferred law for banking and finance transactions whether they take place in the United Kingdom or not. When opting for English law to govern a contract, the choice of the jurisdiction of the English courts usually follows suit. The European Union’s favourable regimes of several recognition and enforcement of Judgments, especially the Brussels I Recast regulation, have made it even
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Banking on AI: mandating a proactive approach to AI regulation in the financial sector Law and Financial Markets Review Pub Date : 2020-04-02 Jon Truby, Rafael Brown, Andrew Dahdal
Despite an emerging international consensus on principles of AI governance, lawmakers have so far failed to translate those principles into regulations in the financial sector. Perhaps, in order to remain competitive in the global race for AI supremacy without being typecast as stifling innovation, typically cautious financial regulators are unusually allowing the introduction of experimental AI technology
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W[h]ither Australia? Will Parliament Act? Law and Financial Markets Review Pub Date : 2020-04-02 David G. Millhouse
Australia is replete with commissions and inquiries into egregious behaviour in its financial sector. This author has quantified the effects of those behaviours on individuals and the wider economy. 1 These investigations include Heydon 2 (elimination of unhealthy culture), Hayne 3 (confluence of law and morality) and the Productivity Commission 4 (trust). The most important Hayne recommendations 5
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The Pros and Cons for Insider Trading Regulation in Zimbabwe Law and Financial Markets Review Pub Date : 2020-03-17 Howard Chitimira, Pontsho Mokone
The debate on the regulation of insider trading has existed for several decades and it remains unresolved to date. For instance, proponents for the deregulation of insider trading argue that it should not be treated as an offence while proponents for the regulation of insider trading contend that it is an offence that could, inter alia, give rise to a host of problems such as poor market efficiency
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New Forms of Money for the Twenty-first Century and the Legacy of France’s Assignat Experiment Law and Financial Markets Review Pub Date : 2020-01-27 Phoebus L. Athanassiou
The assignat, the French Revolution’s innovative but failed currency experiment, is amongst the most instructive in the entire history of currency innovations. Although the example of the assignat is often invoked to demonstrate the importance of restraint in the issuance of token money, and to illustrate the evils of uncontrolled inflation, it has so far received little attention in the debate surrounding
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The moral foundations of stakeholder capitalism Law and Financial Markets Review Pub Date : 2020-01-02 Justin O’Brien
The Irish revolutionary Sean Lemass wrote in 1927 that wars always end with necessary compromise. ‘We must,’ he warned, ‘forget the petty conceits that bedevil us like rouge on the face of a corpse and face the facts, the hard facts, we must overcome.’ Lemass, instrumental in sparking a civil war, went on to become the leader of Fianna Fail, the Soldiers of Destiny, a party that has dominated Irish
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A symbolic legislative gesture? An argument for active enforcement of the insider trading prohibition in Myanmar Law and Financial Markets Review Pub Date : 2020-01-02 Matilda Gillis
The object of this short article is to examine one aspect of Myanmar’s recent market reform, namely, its prohibition of insider trading. The prohibition is itself uncontroversial and brings Myanmar into line with the securities laws of most other developed nations. The focus of this article is, rather, on whether the prohibition should be actively enforced or left to function as a mere symbolic legislative
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Shrinks in the boardroom: the pathology of ignorance Law and Financial Markets Review Pub Date : 2019-10-02 Justin O’Brien
Rarely has an official Australian report been so keenly awaited across regulatory, practitioner and academic circles. Just what would the shrink in the boardroom make of contemporary practice? What stunning insights could an organisational psychologist bring to the table, albeit incorporated into a framework that comprised the usual suspects? The answer is not much but not for the reasons that have
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Access to confidential information in the financial and banking sectors: judgements of the Court of Justice in Altmann, Baumeister, UBS and Buccioni Law and Financial Markets Review Pub Date : 2019-09-25 Carla Farinhas
In the years between 2014 and 2018, in judgements Altmann, Baumeister, UBS and Buccioni, the Court examined the scope of the obligation of professional secrecy incumbent on financial and banking supervisory authorities of Member States pursuant to Article 54 MiFID and Article 53 CRD. The Court has not only clarified the notion of “confidential information” but has also provided guidance to national