European banking and financial law

Cover
Half Title
Title
Copyright
Outline contents
Contents
Preface to the Second Edition
Table of Legislation
Part A Introduction
	1 Sources of EU financial law
		1.1 Introduction
		1.2 EU statutes and their hierarchy
			1.2.1 The Treaties
			1.2.2 Regulations and Directives
		1.3 EU financial regulation
			1.3.1 Introduction
			1.3.2 Banking Directives
			1.3.3 EU passport
			1.3.4 Financial regulation in the making: Lamfalussy Report
		1.4 Financial supervision in the EU
			1.4.1 De Larosière Report
			1.4.2 European Banking Union
		1.5 Recent developments
		1.6 Further reading
		1.7 Questions
Part B Financial markets
	2 The primary market
		2.1 A practical and historical perspective on capital markets
			2.1.1 History of offering securities
			2.1.2 Capital markets and securities: the basics
		2.2 The offering of securities: rules and regulations
			2.2.1 Introduction
			2.2.2 From Directives to Regulation
			2.2.3 Duty to publish a prospectus and rules for drafting, approving and distributing the prospectus
			2.2.4 Scope and exemptions of the Prospectus Regulation
			2.2.5 Enforcement and liability
		2.3 Crowdfunding
		2.4 Credit rating agencies
			2.4.1 Introduction
			2.4.2 Financial crises and credit rating agencies
			2.4.3 CRA Regulations
		2.5 Further reading
		2.6 Questions
	3 The secondary market
		3.1 Introduction
		3.2 Investment firms, services and activities
		3.3 Trading venues
			3.3.1 Multilateral trading facilities
			3.3.2 Organised trading facilities
			3.3.3 Systematic internalisers
		3.4 Listing and liabilities
			3.4.1 Listing Directive
			3.4.2 Securities
		3.5 Clearing and settlement
		3.6 Further reading
		3.7 Questions
	4 Market abuse
		4.1 Market abuse and its effects
		4.2 Market abuse regulation
			4.2.1 Introduction
			4.2.2 Scope of the Regulation
			4.2.3 Insider dealing
			4.2.4 Unlawful disclosure of inside information
			4.2.5 Market manipulation
			4.2.6 Five main obligations
		4.3 MAD II: enforcement and criminal sanctions
		4.4 Further reading
		4.5 Questions
	5 Consumer and investor protection
		5.1 Introduction
		5.2 Unfair Terms Directive
			5.2.1 Introduction
			5.2.2 Main terms and provisions
		5.3 Distance financial services
		5.4 Consumer Credit and Mortgage Credit Directives
			5.4.1 Consumer Credit Directive
			5.4.2 Mortgage Credit Directive
		5.5 Markets in Financial Instruments legislation
			5.5.1 Introduction
			5.5.2 Investment services and investment activities
			5.5.3 Client identification and classification
			5.5.4 Investor protection rules
		5.6 Further reading
		5.7 Questions
Part C Financial institutions
	6 Banking, EU supervision and bank structures
		6.1 Introduction
		6.2 Societal benefits and costs: rationale for regulation
		6.3 EU banking supervision and enforcement
			6.3.1 ECB and its monetary role
			6.3.2 EBA, ESMA and EIOPA
			6.3.3 ECB and its supervisory role
			6.3.4 National supervision
		6.4 Organisational structures of banks
			6.4.1 Commercial banks and investment banks
			6.4.2 Multifunctional groups versus universal banks
			6.4.3 Branches and subsidiaries
			6.4.4 Banking groups
		6.5 Bank and “industry”
			6.5.1 Bank owning an “industry”
			6.5.2 Commercial businesses owning a bank
		6.6 Shadow banking
		6.7 Further reading
		6.8 Questions
	7 Authorisation, capital requirements and governance rules
		7.1 Introduction
		7.2 EU banking activities
			7.2.1 Definition and authorisation
			7.2.2 The EU passport
		7.3 Prudential regulation
			7.3.1 Introduction
			7.3.2 Liquidity regulation
				7.3.2.1 Liquidity requirements
				7.3.2.2 Emergency liquidity assistance
			7.3.3 Capital regulation
				7.3.3.1 Quality of the capital buffer
				7.3.3.2 Size of the buffer
				7.3.3.3 Leverage ratio
				7.3.3.4 Large exposure regime
			7.3.4 Basel
		7.4 Bank governance
		7.5 Further reading
		7.6 Questions
	8 Bank insolvency
		8.1 Introduction
		8.2 EU bank insolvency law
			8.2.1 Winding­up Directive
			8.2.2 BRRD and SRM
				8.2.2.1 Recovery and resolution plans
				8.2.2.2 Early intervention measures
				8.2.2.3 Resolution and resolution tools
			8.2.3 Resolution tools and fundamental rights
		8.3 Protection of the depositor
			8.3.1 Introduction
			8.3.2 The Deposit Guarantee Scheme Directives
		8.4 Further reading
		8.5 Questions
	9 The investment firm and the investment fund
		9.1 Introduction
		9.2 The investment firm
			9.2.1 Introduction
			9.2.2 The investment firm under MiFID II
			9.2.3 Authorisation and initial capital
			9.2.4 The EU passport
			9.2.5 Fitness of directors and qualifying shareholders
		9.3 The investment fund
			9.3.1 Introduction
			9.3.2 Structure of an investment fund
			9.3.3 Undertakings for the Collective Investment in Transferable Securities
			9.3.4 UCITS and rules of transparency
			9.3.5 Alternative Investment Funds
				9.3.5.1 Introduction
				9.3.5.2 Authorisation
				9.3.5.3 Organisational requirements
		9.4 EU passport for UCITS and AIFs
		9.5 Further reading
		9.6 Questions
Part D Financial Transactions
	10 Custody and transfer of cash and securities
		10.1 Introduction
		10.2 Clearing and settlement
			10.2.1 Depositum and indirect holding
			10.2.2 Clearing and settlement
			10.2.3 Settlement Finality Directive
		10.3 Custody and transfer of cash
			10.3.1 Segregation
			10.3.2 Payment Services Directive II
		10.4 Custody and transfer of securities
			10.4.1 Segregation
			10.4.2 Regulatory law
			10.4.3 Private law
		10.5 Further reading
		10.6 Questions
	11 Loan finance
		11.1 Introduction
		11.2 Corporate finance
		11.3 Syndicated loans
		11.4 Facilities, types and purposes
			11.4.1 Facilities
				11.4.1.1 Term loan
				11.4.1.2 Revolving credit
				11.4.1.3 Demand loan
				11.4.1.4 Stand­by loan
				11.4.1.5 Overdraft facility
				11.4.1.6 Contingent liability facility
			11.4.2 Types of finance
				11.4.2.1 Corporate finance
				11.4.2.2 Asset finance
				11.4.2.3 Project finance
				11.4.2.4 Limited recourse financing
			11.4.3 Purposes
				11.4.3.1 Acquisition finance
				11.4.3.2 Bridge finance
				11.4.3.3 Mezzanine finance or venture capital
				11.4.3.4 Refinancing
				11.4.3.5 Mismatch facilities
		11.5 Documentation clauses
			11.5.1 Structure of the documentation
			11.5.2 Purpose and conditions of utilisation
			11.5.3 Payment, repayment and prepayment
			11.5.4 Interest, margin, costs and fees
			11.5.5 Guarantees, representations and undertakings
				11.5.5.1 Guarantees
				11.5.5.2 Representations and warranties
				11.5.5.3 Undertakings
			11.5.6 Events of defaults
				11.5.6.1 Effects and classification of defaults
				11.5.6.2 Cross­default
				11.5.6.3 Material adverse change
				11.5.6.4 Change of control
			11.5.7 Boilerplate
				11.5.7.1 Changes to parties
				11.5.7.2 The agent
				11.5.7.3 Waivers
				11.5.7.4 Governing law
				11.5.7.5 Conditions precedent
		11.6 Security
			11.6.1 Purposes of security
			11.6.2 Security trustee and parallel debt
		11.7 Further reading
		11.8 Questions
	12 Derivatives
		12.1 Introduction
		12.2 Main categories of derivatives
			12.2.1 Options
			12.2.2 Forwards
			12.2.3 Swaps
		12.3 Contractual frameworks
			12.3.1 ISDA master agreement
			12.3.2 Principal terms and conditions
			12.3.3 Events of default
			12.3.4 Automatic termination versus termination by notice
			12.3.5 Netting
				12.3.5.1 Settlement netting
				12.3.5.2 Close­out netting
				12.3.5.3 Insolvency netting
		12.4 Statutory framework
			12.4.1 General
			12.4.2 EMIR
			12.4.3 MiFIR
		12.5 Further reading
		12.6 Questions
	13 Collateralised finance
		13.1 Introduction
			13.1.1 Examples
				13.1.1.1 Repurchase agreements
				13.1.1.2 Securities lending transactions
				13.1.1.3 Derivatives
		13.2 Principal terms and conditions
			13.2.1 Master agreements
				13.2.1.1 Repurchase agreements
				13.2.1.2 Securities lending transactions
			13.2.2 Title transfer and security interest
			13.2.3 Flow of cash
			13.2.4 Stabilisation instruments
				13.2.4.1 Margin transfers
				13.2.4.2 Repricing and adjustment
			13.2.5 Substitution, income payments and interest
			13.2.6 Events of default, early termination and close­out netting
		13.3 Collateral Directive
			13.3.1 Scope of the Collateral Directive
			13.3.2 Derogations from national private law
				13.3.2.1 No formalities
				13.3.2.2 Right of use
				13.3.2.3 Recharacterisation and fiduciary transfers
				13.3.2.4 Close­out netting and insolvency
		13.4 Securities Financing Transactions Regulation, MiFID II
		13.5 Further reading
		13.6 Questions
	14 Structured finance
		14.1 Introduction
		14.2 Securitisation
			14.2.1 Global financial crisis and Securitisation Regulation
			14.2.2 Transaction
			14.2.3 Objectives
			14.2.4 Receivables and parties
				14.2.4.1 Receivables
				14.2.4.2 Originator
				14.2.4.3 Debtors
				14.2.4.4 Servicer
				14.2.4.5 SPV
				14.2.4.6 Investors
				14.2.4.7 Bonds
				14.2.4.8 Security trustee
				14.2.4.9 Swap counterparty
				14.2.4.10 GIC and liquidity provider
				14.2.4.11 Rating agencies
				14.2.4.12 Profit extraction
			14.2.5 Legal issues
				14.2.5.1 True sale
				14.2.5.2 Security rights
				14.2.5.3 Assignability, notice and applicable law
				14.2.5.4 Set­off
				14.2.5.5 Regulatory issues
			14.2.6 Alternative structures
		14.3 Covered bonds
			14.3.1 Transaction
			14.3.2 Legal issues
		14.4 Further reading
		14.5 Questions
	15 Answers
Index