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.
- 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
The Changing Legal Landscape
- Introductions and welcome from the chairperson
- Overview of the training course
- Discussion of the delegate expectations
The interaction of new mandates, autonomy, and governance: a comparative analysis
- 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?
Central bank transparency code (CBT)
- Enhanced transparency needs for central banks
- Overview and key concepts
- Key design considerations
- Conducting a CBT Review
Climate change: new risk to central banks
- 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?
New Frameworks and Strategies for Legal Risks
- Overview of the foundations of RegTech and SupTech
- 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
How is fintech challenging and changing legal standards and practices?
- 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?
Towards a legal framework for CBDCs, stablecoins and crypto assets
- 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
Safeguarding Financial Soundness
Building blocks for liquidity & funding in resolution and cross-border bank resolution
- 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
The simultaneous resolution of several banks: the experience of Ghana and recent reforms to promote financial stability, integrity and inclusion
- 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
Legal risks of collateral taking
- Taking loan collateral for central bank lending
- Due diligence process of collateral taking
- Drawdown and transfer
Strengthening Governance; Protecting Independence
A central bank at court: ECB case study
- 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
Role of lawyers in crisis preparedness and management
- This session will be an interactive workshop with the opportunity for participants to interact and engage.
Closing remarks and delegate action plans
- 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
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
This course has not been scheduled, however you can request for In-House training