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Financial Law: a Comparative Law Perspective

Xiaoyan Song

Prof. of Law, Law School

Shanghai University of Finance and Economics

xiaoyansong@mail.shufe.edu.cn

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What does this course include

-- Central banking law

-- Different modes and transition of financial regulation

-- International banking supervision and BASEL system

-- International securities law

-- Financial consumer protection

-- Resolution of problem financial institutions

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Introduction

What’s finance? What’s financial market? What’s financial law? Why do we need financial law?

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What’s finance According to the view of macro-

economy, all the economy units are to be divided into either money-surplus department or money-deficit department.

Finance is a bridge of money. Finance is the blood of a country’s

economy.

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Financial Market Financial markets include indirect and

direct market. Banking industry is the typical of indirect

market. Why? Securities market is the typical of direct

market. Why? A brief comparison between these two

markets: factors to be considered while financing——funds’ amount; different benefits and drawbacks of equity capital and debt capital; disclosure requirements.

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Financial Instruments In general financial instruments are to be

divided into spot product and derivative product (according to delivery time)

Financial instruments are created to meet different needs: saving, investment, hedging, speculation, etc.

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Why to regulateFinancial safety; Financial efficiency; Consumer protection

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What is financial lawFinancial law is all the norms which are to

adjust parties’ behavior and relationship occurred in financial markets.

Some important international financial organizations and supervisory authorities

● organizations

http://www.imf.org/ http://www.bis.org/bcbs/ http://www.iosco.org/

● supervisory authorities: GB U.S

http://www.bankofengland.co.uk/Pages/home.aspx

http://www.fsa.gov.uk/ http://www.federalreserve.gov/ http://www.sec.gov/ http://www.fdic.gov/

● supervisory authorities: EU

http://www.esma.europa.eu/ http://www.eba.europa.eu/ https://eiopa.europa.eu/ http://www.esrb.europa.eu/home/html/

index.en.html http://www.ecb.int/home/html/index.en.html