Legal Risks: Governance, Compliance and an Evolving Legal Environment

Legal Risks: Governance, Compliance and an Evolving Legal Environment

Legal Risks: Governance, Compliance and an Evolving Legal Environment

Chair: Atilla Arda, Senior Financial Sector Expert, International Monetary Fund


Day 1, 17th September – New Risks: A Legal Perspective 

The interaction of new mandates, autonomy, and governance: a comparative analysis 
Atilla Arda
, Senior Financial Sector Expert, International Monetary Fund

  • Legal implications of the evolving mandates and governance structure of central banks 
  • Comparative analysis of developments in selected jurisdictions  
  • New roles and responsibilities in the legal team 
  • Discussion: how can the legal departments help to deliver change 

Central bank governance and legal reform: a case study of the Bank of Israel
Karnit Flug, former Governor, Bank of Israel (invited)

  • Strategies and examples of changing a central bank’s laws 
  • Strengthening central banks legal accountability frameworks 
  • Implications for independent decision-making structure 
  • Case study: changes in the Bank of Israel’s legal framework  

The post-crisis central bank: fit for purpose?
Workshop with Hans Kuhn
, former General Counsel, Swiss National Bank

  • Lessons learned and longer-term reforms affecting the way central banks interact with their market 
  • Monetary policy, institutional & regulatory reforms: post-crisis policy actions 
  • Evolution of central banks as regulators 
  • Discussion: how can central banks better prepare for the next crisis

Day 2, 18th September – New Frameworks and Strategies for Legal Risks 

Effective legal risk management: a user’s guide
Murat Baykal, Senior Counsel, Central Bank of the Republic of Turkey

  • Key features of effective legal risk management 
  • The roles and reporting lines necessary to enforce the framework
  • Understanding the implications of decentralised legal risk management  
  • Discussion: Applicability of the framework to delegates home institutions


Legal Tech and the risks of disruptive innovation
Thomas Curry
, Partner, Nutter McClennen & Fish LLP & former U.S Comptroller of the Currency

  • Impact of disruptive innovation on financial services industry
  • Implications for the work of central bank legal officials  
  • Tips to incorporating innovation in a financial institution structure  
  • The state of the art in Legal Tech and applications in central banking 

AI and Machine Learning in financial services and supervision: legal implications in focus 
Nikita Aggarwal
, Research and Course Design Fellow in Law and Technology, University of Oxford & former Counsel, International Monetary Fund

  • High level overview of legal areas impacted by AI and machine learning 
  • Implications of AI and machine learning on financial regulation and supervision  
  • Strategies for helping disruptive innovation comply with legal requirements 
  • AI and machine learning in regulation and supervision: who is accountable? 

Legal framework for crypto assets and CBDCs
Monika Johansson, Advisor, Payments Department, Sveriges Riksbank – (invited)

  • Legal foundations of regulatory framework for crypto assets
  • Strategies for combating illegal activities such as money laundering and finance of terrorism  
  • Key features of legal frameworks behind CBDC 
  • Overview of necessary legislative and regulatory amendments for a systematic CBDC issuance

Climate change: new legal risks to central banks
Frank Elderson, Board Member, De Nederlandsche Bank – (invited)

  • Impact of climate change on central banks mandates and regulators 
  • Understanding the new legal implications of climate change to central banks 
  • Emerging trends in dealing with climate risks 
  • New responsibilities for legal departments in financial services: how can central banks educate the industry 

Day 3, 19th September – Building Effective Banking Resolution

Effective bank resolution regimes: building blocks in focus 
Clare Merrifield
, Senior Legal Counsel, Resolution Directorate, Bank of England

  • Key features of effective resolution regimes 
  • Examples of resolution plans, resolvability assessments and evidential decision making
  • Emerging challenges for central bank lawyers for removing barriers to resolvability
  • Case study: key features of the Bank of England’s revised resolvability assessment framework 

Foundations for cross-border bank resolution 
Eamonn White
, Division Head, Resolution, Hong Kong Monetary Authority

  • Key steps in designing effective cross-border resolution frameworks
  • Overview of strategies used for cross-border crisis management 
  • Tips for effective cross jurisdiction co-operation and coordination 
  • Discussion: how to plan for resolution of individual firms?

The simultaneous resolution of several banks: case study of Bank of Ghana 
Elsie Addo Awadzi
, Second Deputy Governor, Bank of Ghana

  • Example of simultaneous bank resolution of several banks 
  • Overview of short and medium term steps 
  • The role and responsibilities of the legal department 
  • Discussion: what is the role of the central bank in building confidence and resilience 

Day 4, 20th September – New Views on Liquidity and Collateral

Legal risks of collateral taking 
Randip Bains
, Legal Counsel & Radhika Sood, Senior Legal Counsel, Bank of England

  • Overview of the legal risks associated with collateral taking
  • Strategies for the due diligence process of collateral taking 
  • Dealing with the legal risks in taking raw loans 
  • Discussion: how to approach different collateral risks in home jurisdictions? 

Revisiting emergency lending assistance: a case study of Canada 
Steve Thomas, Assistant General Counsel, Bank of Canada

  • Recent policy changes to Bank of Canada’s Emergency Lending Assistance (ELA)
  • Strategies to manage legal risks stemming from ELA operations 
  • Implications of the “lender of last resort” function in ELA context 
  • Case study: new responsibilities for the legal department  

Delegate action points and course conclusion 
Led by chairman, Atilla Arda 

  • Summary of the course and main points
  • Discussion of the observed trends and case studies 
  • Application of learning points in the delegates’ home organisations
  • Preparation of action points