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.

 

Course agenda

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.

The Changing Legal Landscape

13:0013:15

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 the central banks of countries as diverse as Myanmar, Indonesia, Jamaica, Ukraine, Greece, Ireland, Portugal, Kosovo, and Egypt. In recent years, he was the deputy mission chief for the IMF Financial Sector Assessment Program (FSAP) for Switzerland and he led the crisis management workstream for the Euro Area FSAP; currently, he is leading the crisis management workstream for the USA FSAP. 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 is a contributor for ‘Smit & Herzog on The Law of the European Union.’ 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.

13:1514:15

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?

14:1514:30

Break

14:15 - 14:30

14:3015:30

Climate change: new risk to central banks

14:30 - 15:30

  • 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?

15:3015:45

Break

15:30 - 15:45

15:4516:45

How is fintech challenging and changing legal standards and practices?

15:45 - 16:45

  • 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?

New Frameworks and Strategies for Legal Risks

13:0014:00

Towards a legal framework for CBDCs, stablecoins and crypto assets

13:00 - 14:00

  • Taxonomy of digital money: CBDCs, stablecoins and crypto assets in focus
  • Key features of – and gaps in – existing legal are regulatory frameworks
  • Value proposition and key risks of digital money
  • Case study: Overview of necessary legislative and regulatory amendments for a systematic e-krona issuance

14:0014:15

Break

14:00 - 14:15

14:1515:15

Standards for AI and machine learning in financial service: work in progress

14:15 - 15:15

  • Overview of AI and machine learning’s impact on finance to date
  • Examples of AI driven transformation of regulatory processes and supervisory cycles
  • Implications for national and cross-jurisdictional legal frameworks
  • Key benefits related to the developments of international standards for the use of AI and machine learning

15:1515:30

Break

15:15 - 15:30

15:3016:30

Legal tech: where are the opportunities – and the risks for legal departments?

15:30 - 16:30

  • Legal tech: technological foundations and the state of the art
  • Examples of applications in central banking and financial supervision
  • Tips for incorporating innovation into operating frameworks
  • Discussion: how can legal departments make the case for technological investment?

Safeguarding Financial Soundness

13:0014:00

Building blocks for effective cross-border bank resolution

13:00 - 14:00

  • Overview of challenges in cross-border banking and crises impact
  • Key steps in designing effective cross-border resolution frameworks
  • Tips for effective cross jurisdictional co-operation and coordination
  • Discussion: what works and what doesn’t – lessons from the past ten years

14:0014:15

Break

14:00 - 14:15

14:1515:15

The simultaneous resolution of several banks: the experience of Ghana

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

15:1515:30

Break

15:15 - 15:30

15:3016:30

Legal risks of collateral taking

15:30 - 16:30

  • 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?

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

14:0014:15

Break

14:00 - 14:15

14:1515:15

Building a compliance function at a central bank

14:15 - 15:15

  • Compliance in central banking: requirements and raison d’etre
  • Strategies for implementing a compliance function
  • Examples of successful compliance frameworks in central banks
  • Roles and responsibilities of legal officers and departments; relations with other functions

15:1515:30

Break

15:15 - 15:30

15:3016:00

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

15:30 - 16:00

  • 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

16:0016:15

Feedback forum

16:00 - 16:15

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.

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 the central banks of countries as diverse as Myanmar, Indonesia, Jamaica, Ukraine, Greece, Ireland, Portugal, Kosovo, and Egypt. In recent years, he was the deputy mission chief for the IMF Financial Sector Assessment Program (FSAP) for Switzerland and he led the crisis management workstream for the Euro Area FSAP; currently, he is leading the crisis management workstream for the USA FSAP. 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 is a contributor for ‘Smit & Herzog on The Law of the European Union.’ 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.