Legal Risks: Good Governance, Compliance and an Evolving Legal Environment main page 2021

Legal Risks: Good Governance, Compliance and an Evolving Legal Environment

Legal Risks: Good Governance, Compliance and an Evolving Legal Environment

September 6 – 9

Chair: Atilla Arda, senior financial sector expert, International Monetary Fund 

Disruptive forces continue to present unprecedented challenges to central banks and their lawyers.

Increasingly legal officers in central banks recognise the need to evaluate the implications of a changing policy environment, new responsibilities such as climate change, and innovations such as digital money.

Central bank lawyers must understand the shift in risks associated with these fundamental changes. The international dimension of these challenges makes the role of lawyers even more demanding. New skills and approaches are needed.

This course, “Legal Risks: Governance, Compliance and an Evolving Legal Environment” is designed to equip central bankers with the tools to meet these challenges. 

Each day will feature three hours of expert-led live content to maximise the opportunity to share and learn. The course chair will ensure participants have opportunities to network throughout the programme.

Timings: 8am-12pm (ET) | 1pm-5pm (BST) | 8pm-12am (SGT) 

Course agenda

Two weeks prior to your training course you will be emailed access to our content hub with course materials, including a trial to Central Banking if you are not already subscribed. There will be a combination of articles, reports and presentations that will contribute to two hours of preparation time for the live content. Presentations for the sessions will also be held here subject to the speaker approval.

The Changing Legal Landscape

13:0013:30

Course introduction
Course introduction session led by the chair

13:00 - 13:15

  • Introductions and welcome from the chairperson
  • Overview of the training course
  • Discussion of the delegate expectations
Atilla Arda

Senior financial sector expert

International Monetary Fund

Atilla Arda is a Senior Financial Sector Expert in the International Monetary Fund’s (IMF) Monetary and Capital Markets Department; prior to this, he was a Senior Counsel in the IMF’s Financial & Fiscal Law Unit. Mr. Arda joined the IMF in February 2007 from the central bank of the Netherlands where he held a Senior Counsel position and was Substitute Secretary to the Board; he also contributed to the workings of the Legal Committee of the European System of Central Banks. Mr. Arda has consulted for over 70 countries, half of which on-site, including for countries as diverse as Egypt, Greece, Indonesia, Ireland, Jamaica, Kosovo, Myanmar, Portugal, Sri Lanka, and Ukraine. Most recently, he was the deputy head for the Switzerland Financial Sector Assessment Program (FSAP), and he led the FSAP crisis readiness teams for the United Kingdom, United States, and euro area. Mr. Arda is specialized in central bank governance and law, financial law, institutional frameworks for macroprudential policy and crisis management, financial safety net arrangements, crisis preparedness, and bank resolution regimes. Mr. Arda undertook his undergraduate at the Amsterdam Academy of Banking and Finance; he is a graduate of both the Amsterdam Law School and the Amsterdam Graduate School of Law of the University of Amsterdam, where he specialized in international economic and financial law. He is a regular speaker at international conferences and has been chairing Central Banking Publications’ course on ‘Central Bank Governance and Legal Risks’ since 2014.

13:3014:00

The interaction of new mandates, autonomy, and governance: a comparative analysis

13:15 - 14:15

  • Overview of changing central bank function and risk profile
  • Comparative analysis of developments in selected jurisdictions
  • Legal foundations of effective corporate governance
  • Discussion: how are legal department responding to the impact of disruptive forces?
Atilla Arda

Senior financial sector expert

International Monetary Fund

Atilla Arda is a Senior Financial Sector Expert in the International Monetary Fund’s (IMF) Monetary and Capital Markets Department; prior to this, he was a Senior Counsel in the IMF’s Financial & Fiscal Law Unit. Mr. Arda joined the IMF in February 2007 from the central bank of the Netherlands where he held a Senior Counsel position and was Substitute Secretary to the Board; he also contributed to the workings of the Legal Committee of the European System of Central Banks. Mr. Arda has consulted for over 70 countries, half of which on-site, including for countries as diverse as Egypt, Greece, Indonesia, Ireland, Jamaica, Kosovo, Myanmar, Portugal, Sri Lanka, and Ukraine. Most recently, he was the deputy head for the Switzerland Financial Sector Assessment Program (FSAP), and he led the FSAP crisis readiness teams for the United Kingdom, United States, and euro area. Mr. Arda is specialized in central bank governance and law, financial law, institutional frameworks for macroprudential policy and crisis management, financial safety net arrangements, crisis preparedness, and bank resolution regimes. Mr. Arda undertook his undergraduate at the Amsterdam Academy of Banking and Finance; he is a graduate of both the Amsterdam Law School and the Amsterdam Graduate School of Law of the University of Amsterdam, where he specialized in international economic and financial law. He is a regular speaker at international conferences and has been chairing Central Banking Publications’ course on ‘Central Bank Governance and Legal Risks’ since 2014.

14:0014:15

Break

14:15 - 14:30

14:1515:15

Central bank transparency code (CBT)

14:30 - 15:30

  • Enhanced transparency needs for central banks
  • Overview and key concepts
  • Key design considerations
  • Conducting a CBT Review
Ghiath Shabsigh

Assistant director, monetary and capital markets

International Monetary Fund

Ghiath Shabsigh is the Assistant Director of the Monetary and Capital Market Department at the IMF, with responsibilities covering, central banking, fintech and financial sector development. Since joining the IMF, he worked on economic reform programs, financial sector deepening, financial stability assessment programs, and capacity building in central banks in countries in Africa, Central and Southeast Asia, Europe, Middle East, and North America. His previous work experience includes working as a financial analyst and teaching. Mr. Shabsigh holds a Ph.D. degree in Monetary Economics and International Finance, a MA in Economic Development, a B.Sc. in Economics and Business, and several professional qualifications in banking and securities market operations.

15:1515:45

Networking break
An opportunity to share experiences with your fellow participants.

15:30 - 16:00

15:4516:45

Climate change: new risk to central banks

15:45 - 16:45

  • Impact of climate change on central banks’ mandates and responsibilities
  • Understanding the legal implications of climate change policies
  • Examples of national and cross-jurisdictional initiatives
  • Discussion: do central banks have sufficient legal powers to effectively contribute to the greening of the financial system?
Gábor Gyura

Head of the sustainable finance department

Central Bank of Hungary

Gábor Gyura acts as Head of the Sustainable Finance Department at the Central Bank of Hungary. Being responsible for the Bank’s green agenda, his main work area is the development of the domestic green finance market and the improvement of environmental risk management in the financial system. He is a member of several international committees and working groups in the field of green finance. He has a masters degree in Economics and also holds a PhD in Earth Sciences. Besides his central bank role, he also works as part-time assistant professor at the Budapest University of Technology and Economics.

New Frameworks and Strategies for Legal Risks

13:0014:00

Overview of the foundations of RegTech and SupTech

13:00 - 14:00

  • Evolutionary journey of financial, regulatory, and supervisory technology
  • How has RegTech and SupTech impacted the financial services industry?
  • Identifying key technologies in the areas of DLT, Big Data analytics, machine learning and cloud computing
  • Examples of applications in regulatory reporting and compliance risk management
Douglas Arner

Kerry Holdings Professor in Law

University of Hong Kong

Douglas W. Arner is the Kerry Holdings Professor in Law and Director and co-founder of the Asian Institute of International Financial Law at the University of Hong Kong, as well as Faculty Director and co-founder of the LLM in Compliance and Regulation, LLM in Corporate and Financial Law, and Law, Innovation, Technology and Entrepreneurship (LITE) Programmes.

In 2020 he was awarded an inaugural Hong Kong Research Grants Council Senior Fellowship to study the role of digital finance in financial inclusion and the UN Sustainable Development Goals. Douglas has published eighteen books and more than 200 articles, chapters and reports on international financial law and regulation, most recently Reconceptualising Global Finance and its Regulation (Cambridge 2016) (with Ross Buckley and Emilios Avgouleas) and The RegTech Book (Wiley 2019 (Janos Barberis and Ross Buckley).

He is a Senior Visiting Fellow of Melbourne Law School, University of Melbourne, a non-executive director of NASDAQ and Euronext listed Aptorum Group and an Advisory Board Member of the Centre for Finance, Technology and Entrepreneurship (CFTE). Douglas was an inaugural member of the Hong Kong Financial Services Development Council (2013-2019) and Director of the Duke-HKU Asia America Institute in Transnational Law (2005-2016).

14:0014:15

Break

14:00 - 14:15

14:1515:15

How is fintech challenging and changing legal standards and practices?

16:00 - 17:00

  • Impact of disruptive innovation on financial services industry
  • Tips for creating a legal framework that best manages the development of fintech
  • Strategies for balancing innovation with financial stability and consumer protection
  • Discussion: what are the legal issues presented by fintech in delegates’ home jurisdictions?
Thomas Curry

Partner

Nutter McClennen & Fish LLP

Thomas J. Curry is a partner in Nutter’s Corporate and Transactions Department and a co-leader of the firm’s Banking and Financial Services group. He advises clients in a wide range of policy, regulatory, governance, and other matters. He chairs the Milken Institute’s Fintech Advisory Committee and is a member of the Massachusetts Securities Division Fintech Working Group. Prior to joining Nutter, Tom served as the U.S. Comptroller of the Currency until May 2017. He most recently served as an expert consultant for the International Monetary Fund.

In 2012, Tom was nominated by President Obama and confirmed by the U.S. Senate to serve as Comptroller of the Currency – the head of the Office of the Comptroller of the Currency, the federal agency that charters, regulates, and supervises national banks and federal savings banks. As Comptroller, Tom served as an ex-officio member of the Board of Directors of the Federal Deposit Insurance Corporation and the Financial Stability Oversight Council. He was also a member of the Group of Governors and Heads of Supervision (GHOS), the oversight body of the Basel Committee on Banking Supervision.

15:1515:30

Break

15:15 - 15:30

15:3016:30

Towards a legal framework for CBDCs, stablecoins and crypto assets

13:00 - 14:00

  • CBDC, stablecoins and crypto ssets: what’s in a name?
  • Are these assets legally “money”?
  • CBDC: a focus on governance and risk
  • CBDC: key legal issues
Wouter Bossu

Senior counsel & deputy unit chief, legal department

International Monetary Fund

Wouter Bossu currently serves as Senior Counsel and Deputy Unit Chief for the Legal Department of the International Monetary Fund (IMF). He is of Belgian origin and holds degrees in law (Leuven) and business administration (Louvain-la-Neuve). Prior to joining the Fund, he worked for the legal departments of the Belgian and the European Central Banks. His specialties are the legal frameworks of central banking, financial markets and financial stability.

Safeguarding Financial Soundness

12:4514:00

Building blocks for liquidity & funding in resolution and cross-border bank resolution

13:00 - 14:00

  • Case study highlighting the importance of funding in resolution
  • Emergency liquidity assistance in supporting resolution: what are the limitations
  • Some country developments and discussion around remaining challenges
  • Central bank liquidity facility design considerations and a review of the HKMA recent liquidity facility framework revamp
  • A review of the care for resolution regimes, key components to ensure bank resolvability, ahead of a review of some key considerations to ensure effective cross border resolution planning cooperation between home and host authorities 
Eamonn White

Independent Consultant

Independent Consultant former Hong Kong Monetary Authority

Eamonn is Director of Ardhill Advisory, an independent consulting firm focused on advising central banks, national authorities and international organisations on financial stability policy and safety nets, including on bank resolution, bank resolution planning, liquidity and crisis management frameworks. Between 2016 and 2019, Eamonn was Head, Resolution Office at the Hong Kong Monetary Authority. He was responsible for developing the domestic statutory/regulatory resolution regime in Hong Kong, leading resolution planning for institutions in Hong Kong, and contributing to the international cross border resolution policy framework and resolution plans for global banks. Prior to joining the HKMA, Eamonn worked at the Bank of England’s Resolution Directorate for 4 years and as a senior policy advisor to the Chancellor of the Exchequer at HM Treasury (HMT) for 7 years. At HMT he worked at the centre of the UK’s policy and strategic response to the financial crisis, both managing bank failure and the policy response to TBTF. In his early career, Eamonn was a diplomat in Washington DC covering EU foreign policy and trade issues.

Diarmuid Murphy

Head of function

Central Bank of Ireland

Diarmuid has spent a considerable part of his career working on and writing about the operational aspects of central banking. He has worked across the globe with many central banks.  

Diarmuid began his central banking career at the Central Bank of Ireland (CBI) in 2001 and became a key figure in the CBI’s response to the Irish financial Crisis. In recent years, Diarmuid has worked in the market operations area of the European Central Bank, specialising in collateral issues, and he also spent a number of years at the International Monetary Fund working in both the monetary operations and crisis management areas where he undertook key roles in important IMF Financial Sector Assessment Programs (FSAPs). Diarmuid is currently undertaking a Fellowship at the Financial Stability Institute at the Bank for International Settlements where he is co-authoring a paper on the Irish financial crisis. This work represents an opportunity to document the Irish crisis and to identify the institutional and operational gaps and the key lessons learned from this time during the crisis. On his return to the CBI following the Fellowship, Diarmuid will be working on prudential and crisis management issues as they relate to Covid-19 and Brexit.

Diarmuid is also co-leading the development and delivery of a dedicated central banking module as part of a new online Global Central Banking and Financial Regulation master’s degree course with Warwick Business School (in conjunction with the Bank of England).

14:0014:15

Break

14:00 - 14:15

14:1515:15

The simultaneous resolution of several banks: the experience of Ghana and recent reforms to promote financial stability, integrity and inclusion

14:15 - 15:15

  • 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
Elsie Addo Awadzi

Second deputy governor

Bank of Ghana

Mrs. Elsie Addo Awadzi was appointed 2nd Deputy Governor of the Bank of Ghana in February 2018, with responsibility for financial supervision, financial stability, and financial integrity, among others. She is the second woman to be appointed Deputy Governor in the Bank’s 62-year history. 

Before her appointment as Deputy Governor, she was Senior Counsel of the Financial and Fiscal Law Unit of the International Monetary Fund (IMF)’s Legal Department, based in Washington, D.C. In that role, she helped to assess the stability of financial systems in a number of G-20 member countries, and provided technical assistance to help strengthen financial systems and manage financial crises in a variety of IMF member countries. She also advised on legal and institutional aspects of public financial management, public debt management, and fiscal responsibility frameworks.

15:1515:30

Break

15:15 - 15:30

15:3016:30

Legal risks of collateral taking

15:30 - 16:30

  • Taking loan collateral for central bank lending
  • Due diligence process of collateral taking
  • Drawdown and transfer
  • Enforcement
Nikul Kad

Legal counsel, central banking division

Bank of England

Virginia Galloway

Legal counsel, central banking division

Bank of England

Strengthening Governance; Protecting Independence

13:0014:00

A central bank at court: ECB case study

13:00 - 14:00

  • The calculus of credibility: mandate, reputation, independence and accountability
  • Experience of the European Central Bank in defending its monetary policy
  • Impact on policy, processes and reputation
  • Case study: lessons learnt from court experience and preparations
Kestutis Laurinavicius

Head of Section, Financial Law Division

European Central Bank

Kestutis Laurinavicius is heading a team of lawyers at the European Central Bank (ECB) working on monetary policy, foreign reserve management and various other financial law topics. The team is handling a number of cases in which the ECB has been sued before the Court of Justice of the European Union. Mr Laurinavicius represents the ECB in court cases, advises policy colleagues on the legal aspects of monetary policy and other market operations, and reviews and prepares briefings to the decision-making bodies of the ECB. Since his start at the ECB in 2003, Mr Laurinavicius has been dealing with legal questions relating to payment and securities settlement systems, issuance of banknotes, governance and the institutional aspects of the supervisory function. Prior to joining the ECB, Mr Laurinavicius worked at the central bank of Lithuania, advising on legal issues relating to market operations and the implementation of EU financial services law. In 2010-2011 he was on secondment to the International Monetary Fund’s Legal Department, working on financial sector assessments, new legislative proposals for bank resolution and participating in technical assistance missions to Armenia, Azerbaijan and Eritrea.

14:0014:15

Break

14:00 - 14:15

14:1515:15

Role of lawyers in crisis preparedness and management
This session will be an interactive workshop with the opportunity for participants to interact and engage.

14:15 - 15:15

Atilla Arda

Senior financial sector expert

International Monetary Fund

Atilla Arda is a Senior Financial Sector Expert in the International Monetary Fund’s (IMF) Monetary and Capital Markets Department; prior to this, he was a Senior Counsel in the IMF’s Financial & Fiscal Law Unit. Mr. Arda joined the IMF in February 2007 from the central bank of the Netherlands where he held a Senior Counsel position and was Substitute Secretary to the Board; he also contributed to the workings of the Legal Committee of the European System of Central Banks. Mr. Arda has consulted for over 70 countries, half of which on-site, including for countries as diverse as Egypt, Greece, Indonesia, Ireland, Jamaica, Kosovo, Myanmar, Portugal, Sri Lanka, and Ukraine. Most recently, he was the deputy head for the Switzerland Financial Sector Assessment Program (FSAP), and he led the FSAP crisis readiness teams for the United Kingdom, United States, and euro area. Mr. Arda is specialized in central bank governance and law, financial law, institutional frameworks for macroprudential policy and crisis management, financial safety net arrangements, crisis preparedness, and bank resolution regimes. Mr. Arda undertook his undergraduate at the Amsterdam Academy of Banking and Finance; he is a graduate of both the Amsterdam Law School and the Amsterdam Graduate School of Law of the University of Amsterdam, where he specialized in international economic and financial law. He is a regular speaker at international conferences and has been chairing Central Banking Publications’ course on ‘Central Bank Governance and Legal Risks’ since 2014.

Bruce Hickey

Senior Counsel

Federal Deposit Insurance Corporation

Bruce Hickey is Senior Counsel in the Complex Financial Institutions Section of the FDIC’s Legal Division (Resolution & Receivership Branch).  His work focuses on resolution planning and domestic and foreign coordination of crisis management activities.  Prior to joining the FDIC, Bruce was a litigator for over a decade with Sullivan & Cromwell, where he represented numerous U.S. and non-U.S. banking organizations.  He holds an AB from Princeton, a BA and MSt from Oxford, and a JD from Harvard.

15:1515:45

Networking break
An opportunity to share experiences with your fellow participants.

15:15 - 15:45

15:4516:15

Closing remarks and delegate action plans
Concluding session led by the chair

15:45 - 16:15

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

16:1516:30

Feedback forum

16:15 - 16:30

We will send a link in this session to the feedback form and would kindly ask that you help us improve the training product by completing the survey. We would also welcome and verbal feedback in this session.

Date: September 23
The Implementation Workshop is a chair-led forum where attendees will have the opportunity to discuss challenges around implementing the ideas they have learnt during the Live Content. Prior to the workshop you will be emailed questions to prepare in order to gain the most from the session with peers.

14:0015:00

Implementation Workshop

11:00 - 12:00

Benefits of attending the Implementation Workshop: 

  • Developments in the area since the live content sessions, including new resource material
  • Questions arising since returning to the central bank
  • Challenges of implementation: where are the roadblocks?
  • Medium-term goals: what is realistic?
  • Establishment of group network to keep in touch with peers and share best practices

Learning outcomes

At the conclusion of the training, participants will have gained new knowledge and a more comprehensive understanding of:

  • Implications of climate risk for central banks – a lawyer’s guide
  • Key features of legal framework for CBDCs and stablecoins
  • Legal ramifications of AI and machine learning
  • Opportunities and risks in legal tech and fintech
  • Legal risks of collateral taking

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Atilla Arda

Senior financial sector expert

International Monetary Fund

Atilla Arda is a Senior Financial Sector Expert in the International Monetary Fund’s (IMF) Monetary and Capital Markets Department; prior to this, he was a Senior Counsel in the IMF’s Financial & Fiscal Law Unit. Mr. Arda joined the IMF in February 2007 from the central bank of the Netherlands where he held a Senior Counsel position and was Substitute Secretary to the Board; he also contributed to the workings of the Legal Committee of the European System of Central Banks. Mr. Arda has consulted for over 70 countries, half of which on-site, including for countries as diverse as Egypt, Greece, Indonesia, Ireland, Jamaica, Kosovo, Myanmar, Portugal, Sri Lanka, and Ukraine. Most recently, he was the deputy head for the Switzerland Financial Sector Assessment Program (FSAP), and he led the FSAP crisis readiness teams for the United Kingdom, United States, and euro area. Mr. Arda is specialized in central bank governance and law, financial law, institutional frameworks for macroprudential policy and crisis management, financial safety net arrangements, crisis preparedness, and bank resolution regimes. Mr. Arda undertook his undergraduate at the Amsterdam Academy of Banking and Finance; he is a graduate of both the Amsterdam Law School and the Amsterdam Graduate School of Law of the University of Amsterdam, where he specialized in international economic and financial law. He is a regular speaker at international conferences and has been chairing Central Banking Publications’ course on ‘Central Bank Governance and Legal Risks’ since 2014.