Legal Risks: Governance, Compliance and an Evolving Legal Environment 2022

Legal Risks: Governance, Compliance and an Evolving Legal Environment 2022

Legal Risks: Governance, Compliance and an Evolving Legal Environment

September 12 – 15
 

Live Content sessions held: 9am–1pm (EDT) | 2pm–6pm (BST) | 9pm–1am (SGT) 

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

The past two years have seen the legal risk profile of central banks shift. Three disruptive forces stand out. First, the advent of CBDCs and the incorporation of climate are changing the relationship between a central bank, its public and the financial ecosystem. Secondly, and more broadly, technology is changing not just financial markets, but the tools supervisors use to identify risks. And third, the seizure and freezing of reserves in early 2022 pose questions for the architecture of international finance. Increasingly legal officers in central banks recognise the need to evaluate the 
implications of a changing policy environment, new responsibilities and technological innovation.

This course is designed to equip central bankers to meet these challenges. Each day will feature three hours of expert-led Live Content to maximise the opportunity to share and learn. The chair will ensure participants have opportunities to network throughout the course, with time set aside for a workshop on implementing key learnings. 

View chair letter.

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

14:0014:30

Course introduction
Course introduction session led by the chair

14:00 - 14:30

  • Introductions and welcome from the chairperson
  • Overview of the training course
  • Discussion of the participant 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.

14:3015:30

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

14:30 - 15:30

  • 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 departments 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.

15:3016:00

Break

15:30 - 15:45

16:0016:45

Foundations for cross-border bank resolution

15:45 - 16:45

  • 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?
Eamonn White

Independent Consultant

Ardhill Advisory and former Bank of England and Hong Kong Monetary Authority

Eamonn is Director of Ardhill Advisory LTD, an independent consulting firm focused on advising financial institutions, central banks, national authorities and international organisations, including the International Monetary Fund, on financial stability policy. This includes advising on prudential regulation, bank resolution, central bank liquidity and crisis management.

Between 2020 and 2022, Eamonn was a senior advisor to the Bank of England (BoE), leading a resolution planning team for a large UK bank as part of the BoE's Resolvability Assessment Framework, contributing to UK resolution policy development and cross-border cooperation with international authorities on resolution issues.

From 2016 and 2019, Eamonn was Head of the Resolution Office at the Hong Kong Monetary Authority (HKMA). During this time, he was responsible for leading the development of the domestic statutory/regulatory resolution regime for all Hong Kong banks, leading resolution planning for banks in Hong Kong, often in close cooperation with foreign authorities, and contributing to the international cross-border resolution policy framework and resolution plans for global banks through his work as a member of the Financial Stability Board committees and for the cooperative organization of East Asia-Pacific Central Banks (EMEAP).

Before joining the HKMA, Eamonn worked on financial stability topics, including bank resolution at the Bank of England for 4 years. He was also 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 the Too-Big-To-Fail problem.

In his early career, Eamonn was a diplomat in Washington DC, covering EU foreign policy and trade issues.

16:4517:00

Break

16:45 - 17:45

17:0018:00

Climate change: new risk to central banks

17:00 - 18:00

  • 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?
Audun Grønn

Former special advisor to the governor

Norges Bank

Born 1953. Mr. Grønn holds a graduate degree in economics (cand.oecon. 1979) from the University of Oslo. Work experience since 1980 includes various positions at Norges Bank, including Director of International Department, Director of Statistics Department, and Special Advisor to the Governor. Mr. Grønn spent altogether eight years at IMF’s Executive Board in Washington DC, as Senior Advisor (1989-1992), Alternate Executive Director (2011-2013) and Executive Director (2013-2016), as well as one year at the ECB in Frankfurt as national central bank expert (2005-2006). He retired from his position at Norges Bank in July 2021, but continues as a consultant on a part-time basis.

New frameworks and strategies for legal risks

14:0015:00

Towards a legal framework for CBDCs, stablecoins and crypto assets

14:00 - 15:00

  • Taxonomy of digital money: CBDCs, stablecoins and crypto assets in focus
  • Key features of – and gaps in – existing legal and regulatory frameworks
  • Value proposition and key risks of digital money
  • Discussion: are these assets legally “money”?
Jess Cheng

Senior counsel

Federal Reserve Board

Jess Cheng is senior counsel at the Federal Reserve Board of Governors, where she specializes in a broad spectrum of payment system issues, including policy analysis of digital assets, stablecoins, and central bank digital currencies, and oversight of the Federal Reserve’s payment services, including the FedNow Service. She was formerly counsel at the International Monetary Fund, where she advised on the strategic direction of the Fund’s fintech work agenda and provided technical assistance to advance law reform in central bank legislation.  Previously, she was deputy general counsel at Ripple, a San Francisco-based fintech company specializing in DLT-based cross-border payment solutions. Prior to Ripple, she was counsel and officer at the Federal Reserve Bank of New York, and an associate at the New York law firm Wachtell, Lipton, Rosen & Katz. She holds a B.A. in economics from Yale University and a J.D. from Columbia Law School. She currently serves as the Vice Chair of the American Bar Association’s Uniform Commercial Code Committee of the Business Law Section.

15:0015:15

Break

15:00 - 15:15

15:1516:15

How is fintech challenging and changing legal standards and practices?

15:15 - 16:15

  • 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 participants’ home jurisdictions?
Thomas Curry

Former partner and co-leader of banking and financial services group

Former Nutter McClennan & Fish

Thomas J. Curry is a recently retired partner in Nutter McClennan & Fish’s Corporate and Transactions Department and was a co-leader of the firm’s Banking and Financial Services group. He was a regulatory attorney who advised clients on a wide range of policy, financial services regulation, governance, and other issues.

Tom serves on the board of directors of the Federal Home Loan Bank of Boston (FHLBB) and serves on The Brookings Institution's Center for Regulation and Markets Policy Advisory Council. He also chairs the Milken Institute’s Fintech Advisory Council and is a foundation board member of the Alliance for Innovative Regulation (AIR), which helps regulators integrate technology into financial supervision and regulation.

Prior to joining Nutter, Tom served as the U.S. Comptroller of the Currency until May 2017. He also served as an expert consultant for the International Monetary Fund in 2017-2018 and 2021-2022. 

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, he launched the OCC’s Responsible Innovation Initiative, proposed the Fintech national bank charter, and established the OCC Office of Innovation, a first among federal financial regulators. In this role, 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.

Tom also served as Chairman of the Federal Financial Institutions Examination Council (FFIEC) for a two-year term from April 2013 until April 2015.

Before becoming Comptroller in 2012, Tom served as a member of the Board of Directors of the FDIC. He was nominated by President George W. Bush and confirmed by the U.S. Senate in 2003. He continued to serve on the FDIC Board until May 2017. Tom was a FDIC Board member during the Global Financial Crisis and the enactment of the Dodd-Frank Wall Street Reform and Consumer Protection Act of 2010 and participated in the adoption and implementation of its post-crisis reform regulations as well as the United States’ adoption of the Basel 3 capital reforms.

Prior to joining the FDIC’s Board of Directors, Tom served five Massachusetts Governors as the Commonwealth’s Commissioner of Banks from 1995 to 2003 and from 1990 to 1991. He was appointed by Governor William F. Weld, a Republican, in 1995 and by Governor Michael S. Dukakis, a Democrat, in 1990.

Tom served as the Chairman of the Conference of State Bank Supervisors from 2000 to 2001 and served two terms on the State Liaison Committee of the FFIEC, including a term as Committee chairperson.

Previously, Tom served as Acting Commissioner of Banks from February 1994 to June 1995. He previously served as First Deputy Commissioner and Assistant General Counsel within the Massachusetts Division of Banks. Tom entered state government in 1982 as an attorney with the Massachusetts’ Secretary of State’s Office.

Tom was a longtime member of the NeighborWorks America Board of Directors (NWA). He twice served as Chairman of the Board of Directors, most recently from March 2014 through June 2016. NWA is a Congressionally chartered non-profit whose mission is to support affordable and sustainable housing and community development.

16:1516:45

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

16:15 - 16:45

16:4517:45

AI and machine learning in financial services and supervision: legal implications in focus

15:30 - 16:30

  • 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?
Nikita Aggarwal

Research Associate, Oxford Internet Institute

University of Oxford

Nikita Aggarwal is a lawyer and researcher at the Oxford Internet Institute and Faculty of Law, University of Oxford. Her research examines changes to the regulatory landscape occasioned by the proliferation of data-driven technology, with a particular focus on the implications of machine learning ('artificial intelligence') applications in consumer credit markets. Previously, as the Research and Course Design Fellow in Law and Technology at the Faculty of Law, she researched the educational skills gaps in legal education and training created by technological growth, and helped to design and deliver a more interdisciplinary approach to law and technology education at the University. Prior to entering academia, Nikita was an attorney in the legal department of the International Monetary Fund, where she advised on financial sector law reform in the Euro area and worked extensively on initiatives to reform the legal and policy frameworks for sovereign debt restructuring. She previously practiced as an associate solicitor with Clifford Chance LLP, where she specialized in EU financial regulation and sovereign debt restructuring. She earned an LLB (Hons) from the London School of Economics and Political Science. 

Safeguarding financial soundness

14:0015:00

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

14:00 - 15:00

  • 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
Eamonn White

Independent Consultant

Ardhill Advisory and former Bank of England and Hong Kong Monetary Authority

Eamonn is Director of Ardhill Advisory LTD, an independent consulting firm focused on advising financial institutions, central banks, national authorities and international organisations, including the International Monetary Fund, on financial stability policy. This includes advising on prudential regulation, bank resolution, central bank liquidity and crisis management.

Between 2020 and 2022, Eamonn was a senior advisor to the Bank of England (BoE), leading a resolution planning team for a large UK bank as part of the BoE's Resolvability Assessment Framework, contributing to UK resolution policy development and cross-border cooperation with international authorities on resolution issues.

From 2016 and 2019, Eamonn was Head of the Resolution Office at the Hong Kong Monetary Authority (HKMA). During this time, he was responsible for leading the development of the domestic statutory/regulatory resolution regime for all Hong Kong banks, leading resolution planning for banks in Hong Kong, often in close cooperation with foreign authorities, and contributing to the international cross-border resolution policy framework and resolution plans for global banks through his work as a member of the Financial Stability Board committees and for the cooperative organization of East Asia-Pacific Central Banks (EMEAP).

Before joining the HKMA, Eamonn worked on financial stability topics, including bank resolution at the Bank of England for 4 years. He was also 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 the Too-Big-To-Fail problem.

In his early career, Eamonn was a diplomat in Washington DC, covering EU foreign policy and trade issues.

Diarmuid Murphy

Central Bank of Ireland (currently on secondment to the EU Commission)

Diarmuid has spent a considerable part of his career working on and writing about financial resilience and the operational aspects of central banking, and he has worked across the globe with many central banks and national supervisory and resolution authorities.  

Diarmuid began his central banking career at the Central Bank of Ireland (CBI) and was part of the team that played a key role in the CBI’s response to the Irish financial crisis. Diarmuid has also worked in the market operations area of the European Central bank and spent several years at the International Monetary Fund (IMF), in both the central banking and crisis management areas, where he participated in the IMF’s technical assistance and Financial Sector Assessment Program (FSAP) work. Having returned to the CBI in 2018, Diarmuid took over responsibility for Brexit and fintech related banking/payment institution/e-money authorisations and banking contingency planning, establishing a new unit. In 2020, Diarmuid undertook a fellowship program with the Financial Stability Institute at the Bank for International Settlements in Basel focusing on crisis management issues.

In late 2021 Diarmuid commenced a secondment to the EU Commission, where he is now part of the Commission’s team responsible for implementing its published Renewed Sustainable Finance Strategy where his focus continues to be on financial resilience issues.

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

15:0015:15

Break

15:00 - 15:15

15:1516:15

The simultaneous resolution of several banks: the experience of Ghana

15:15 - 16:15

  • 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.

Strengthening governance; protecting independence

14:0015:00

Resolution authorities in court

14:00 - 15:00

  • The calculus of credibility: mandate, reputation, independence and accountability
  • Impact on policy, processes and reputation
  • Case study: lessons learnt from court experience and preparations
João Cunha Marques

Senior financial expert

IMF

15:0015:15

Break

15:00 - 15:15

15:1516:15

Financial authorities’ legal liabilities in multilevel regulatory systems

15:15 - 16:15

  • Multi-level regulatory system of the banking union
  • Enforcement of administrative decisions
  • Liability of resolution authorities
  • The “distribution” of the liability and the degree of discretion
Pier Mario Lupinu

PhD candidate in banking and finance law, faculty of law, economics & finance,

University of Luxembourg – Universitá Degli Studi Roma Tre

Pier Mario Lupinu is a PhD Candidate in Banking and Finance Law jointly at the Universities of Luxembourg and Roma Tre (Italy). He is a Young Researcher at the European Banking Institute and he has been a Visiting Scholar at the Columbia Law School in New York and a DAAD-funded visiting researcher at the Leibniz Institute for Financial Research SAFE at the Goethe University Frankfurt. Currently, he is a visiting researcher in Bank Insolvency at UNIDROIT. Ahead of the PhD, he worked for the European Commission, the European Investment Bank and the Single Resolution Board.

16:1516:30

Break

16:15 - 16:30

16:3017:15

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

16:30 - 17:15

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

Learning outcomes

At the conclusion of the training, participants will be able to:

  • Gain insights into the implications of climate risk for central bank law and mandates
  • Understand the impact of CBDCs and stablecoins on legal and regulatory frameworks
  • Assess the effect of recent sanctions on international finance
  • Analyse the legal standing of AI and machine learning
  • Identify opportunities and risks in fintech

Thumbnail
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.