1.1 Course details
||LLAW6055 / JDOC6055
||Law of International Finance I
|Programme offered under:
||LLM Programme / JD Programme
||Non LLM(CFL) and LLM(CR) students must demonstrate a workable understanding of contract and commercial law or a strong professional background in contemporary finance.
|Credit point value:
||9 credits / 6 credits
|Cap on student numbers:
- Class A: 70 (Evening schedule for part-time students)
- Class B: 60 (Daytime schedule for full-time students)
1.2 Course description
Law of International Finance 1 examines the fundamentals of financial transaction formation and its connection with national and transnational law, financial sector innovation and contemporary commercial practices — that is, “How deals work”, and how law and regulation influence the decisions of banks and other intermediaries operating in organised markets.
The aims of the course are to (i) create from first principles a usable understanding of four elemental capital market transactions; and (ii) provide a common scholarly platform for those new to financial law or to common law practices. This includes consideration of the institutional incentives that influence the commercial actions of transaction parties; contract formation; why transactions succeed or fail; important regulatory settings; and the forms of documentation used to structure transactions and allocate commercial and legal risks.
Four generic transactions will be examined using examples of recent real applications — international syndicated loans; major currency bond issues and debt issuance programmes; simple asset–backed securities; and interest rate and currency swaps. Standardised documentation and topical materials will be used throughout.
1.3 Course teachers
||Mon–Fri afternoons by appointment
2.1 Course Learning Outcomes (CLOs) for this course
CLO 1 Develop a usable understanding of elemental debt capital market and financial derivative transactions. This includes consideration of the parties involved and their motives, contract formation, why transactions succeed or fail, the documentation involved in structuring transactions and allocating risks, and the impact of regulation on transaction design.
CLO 2 The use of generic transaction structures and documents will be accompanied by commercial and contextual explanations of current transactions. With respect to substantive law, the course intends to provide an understanding of specific legal risks and the customary methods by which those risks may be mitigated or avoided.
2.2 LLM Programme Learning Outcomes (PLOs)
PLO A On successful completion of the curriculum, students should be able to demonstrate a solid understanding of the body of legal knowledge and the capacity to conduct research on, critically analyse and evaluate legal principles, at a level required to meet the standards and expectations of the legal profession and the community at large.
PLO B On successful completion of the curriculum, students should be able to apply their legal knowledge and research skills to practical situations or theoretical challenges, and utilise their comparative understanding of the law and its political, social and cultural contexts to provide original and creative insights to legal problems.
PLO C On successful completion of the curriculum, students should be able to apply the knowledge, lawyering skills and legal reasoning to real and novel situations in life, with a view to resolving issues, problems and disputes within the legal parameters.
PLO D On successful completion of the curriculum, students should be able to demonstrate the ability to present effectively legal arguments in the professional context, as well as conveying and explaining the law effectively to lay clients and members of the larger community.
PLO E On successful completion of the curriculum, students should be able to appreciate the underlying moral values of the law and ethics in the profession and the legal system in the broad social, economic, political and cultural contexts: justice, the Rule of Law, and protection of rights and liberties which form the fabrics of a civilised society, and the importance of upholding these values by the legal community.
PLO F On successful completion of the curriculum, students should be able to develop a strong awareness of social issues and conditions, and utilise analytical abilities and rhetorical advocacy to provide leadership for the betterment of the human community.
2.3 Programme Learning Outcomes to be achieved in this course
3.1 Assessment Summary
||Course learning outcomes
|Mid-term group assignment
||9 Nov 2020
|Take home exam
||21 Dec 2020
| *Feedback method (to be determined by course teacher)
||A general course report to be disseminated through Moodle
||Individual feedback to be disseminated by email / through Moodle
||Individual review meeting upon appointment
||Group review meeting
||In-class verbal feedback
3.2 Assessment Detail
To be advised by course convenor(s).
3.3 Grading Criteria
Please refer to the following link: http://www.law.hku.hk/course/grading-criteria/
4.1 Learning Activity Plan
||3 hours / week for 11 teaching weeks
|Private study time:
||9.5 hours / week for 11 teaching weeks
Remarks: the normative student study load per credit unit is 25 ± 5 hours (ie. 150 ± 30 hours for a 6-credit course), which includes all learning activities and experiences within and outside of classroom, and any assessment task and examinations and associated preparations.
4.2 Details of Learning Activities
To be advised by the convenor(s).
||Reading materials posted on Moodle at intervals during the course
|Core reading list:
- Liu, Lejot & Arner, 'Finance in Asia: Institutions, Regulation & Policy' (Routledge) 2013.
- Arner, Hsu, Goo, Johnston & Lejot, 'Financial Markets in Hong Kong: Law & Practice, 2e, Oxford University Press, 2016.
- J. Dalhuisen, 'Transnational Comparative Commercial, Financial & Trade Law', Vol 3 (Hart), 7e, 2019.
|Recommended reading list:
||Provided in Course Outline, to be posted on Moodle prior to Class 1
Please refer to the following link: http://www.law.hku.hk/course/learning-resources/