1.1 Course details
||LLAW6094 / JDOC6094
||Law of International Finance 2
|Programme offered under:
||LLM Programme / JD Programme
||Law of International Finance 1, an academic equivalent, or substantive and demonstrable professional experience.
|Credit point value:
||9 credits / 6 credits
1.2 Course description
Law of International Finance 2 is an advanced course for students who have completed Law of International Finance 1. Its theme is non–traditional ‘shadow’ finance, dealing in context with contract formation, regulatory reforms and market practice.
The course provides insights to complex financial transactions and structured finance. This includes consideration of the parties involved and their various objectives; why transactions succeed or fail; and the impact of regulation on transaction design and shifts in activity between the ‘conventional’ and shadow financial systems.
Topics include the uses and risks of special purpose vehicles; non–recourse finance for movable objects (ships and aircraft) and infrastructure; credit derivatives and synthetic transactions; mis–selling to retail and professionals; and conflicts in debt restructuring. The course will consider the roots and features of complex transactions; how they contributed to the 2007–09 financial crisis; and examine legal and commercial aspects of recent transactions, especially when one elemental instrument is combined or embedded with others. For 2019–20 only, the course will include analysis of the ISDA Master Agreement 2002 as a derivatives documentation platform.
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 complex debt capital markets and structured finance transactions. This includes consideration of parties and their motives, contract formation, why transactions succeed or fail, the documentation used to structure transactions and allocate risks, and the impact of financial and prudential regulation on contract 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
|Three Take home exams
||Due at monthly intervals during and after the course
||1, 2, 5
| *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
6.2 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 12 teaching weeks
|Private study time:
||9.5 hours / week for 12 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 course 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/