Welcome to our CAES1000 2S1 sub-class Moodle. Here you will be able to access class resources, e.g. Powerpoint slides, lesson arrangements, supplementary handouts, etc.

Our classroom: ?

Class time: Tue (9:00-9:50am) & Thur (10:00-11:50am)

Welcome to "The Memeing of Life: Metaphor and Meaning in the AI Era!" This class will be a fun journey that makes us of memes to explore ideas about humour and humanity, sense and significance, all in the context of our AI and Social Media era. 
Moodle will be our 'home page' for class instructions, discussions, and resources. Contact the course instructor, Dr. Jonathan JOHNSON with any questions you might have ( johnsonj@hku.hk ).

* 本次報告為1-6組的同學。
* 每組完成報告PPT之後，由一位組員代表提交。
* 請在2月25日17:00之前提交到本課Moodle第6週的文件夾。

This course introduces various technologies and tools that are useful for software development, including Linux, C++ STL, C , shell scripts and Python. 

This is a self-learning course (flipped class), we will provide learning materials for you to follow. Instructors and teaching assistants are available in the laboratories as facilitators and provide assistant to help your learning.

Students are required to follow the learning materials in the laboratory sessions and submit in class exercises every week, and work on daily programming practices every weekday.

We wish you enjoy learning programming in this course!

This moodle course page is for the courses COMP3412 to collect training reports. Students who are taking

1. a 1-year / 6-month / 3-month internship between June 2017 to August 2018
2. a summer internship between June 2018 to August 2018 (including ISCS5 students),

should submit their training reports through this system.

This moodle course page is for the courses COMP3412 to collect training reports. Students who are taking

1. a 1-year internship between June 2016 to August 2017
2. a summer internship between June 2017 to August 2017,

should submit their training reports through this system.

This is the moodle home of ELEC3342.  For Course information, please refer to 

https://www.eee.hku.hk/~elec3341

This is the moodle page for ELEC3441/2401.  All course-related materials can be found from the course homepage:

http://www.eee.hku.hk/~elec3441

We will use this moodle site only for homework submission later in the semester.

This is the Moodle home of ENGG1203.  We use moodle only for labs and homework submission.  For course information, please visit the course home page at:

http://www.eee.hku.hk/~engg1203

This is the Moodle home of ENGG1203, 2st semester, 2014-15.

The main website of this course is at: http://www.eee.hku.hk/~engg1203

Use this site for labs and homework submission.

 This is a self-learning course. In this flipped "classroom", we will deliver you instructional content, either online or offline, to facilitate your study.

 Instructors and teaching assistants are available in their corresponding "consultation hour" and "help session" to answer your questions and help you with your learning.

 Participants are REQUIRED to finish the checkpoint of each module. The detail of other evaluations including three Assignments, two Written Quizzes, one Course Project and the final exam will be announced in due course.

Follow-up and submission of reports after the Clinical and Laboratory Interphase Teaching

(a)    Students are required to follow up on the patient at least once, if possible.^

(b)    Each student has to submit ONE case report (template attached) on ANY case that is covered in the 2 teaching sessions (i.e., ONE microbiology case report for Block B Microbiology Clinical Laboratory Interphase Teaching) through Moodle platform.

(c)    The reports should include content under the following headings:

 ^When the “Emergency Response Level” is in effect, there is no need to follow-up the patient.

Banking law (LLM) (LLAW6024)

Andrew Fei

B.A. (Cantab), M.A. (Cantab), LL.M. (Harv.)

Semester 1, 2024: Thursdays, 6:30 p.m. to 9:30 p.m. (CPD-3)

Summary

Combining theory with practice, this course focuses on the laws, regulations and policies that affect the banking industry, as well as the key legal documents used in banking transactions.

Beginning with an introduction to the fundamental concepts of banks and their operations, we explore the evolution of global banking regulations, focusing on capital, liquidity and prudential requirements as well as resolution regimes for banks and other financial institutions.

Our journey then takes a closer look at Hong Kong’s legal and regulatory framework for banking and financial services, ensuring students are well-versed in both global and local banking laws and regulations.

Next, we delve into real-world banking transactions with an emphasis on legal documentation and drafting techniques. Through a detailed case study of syndicated loan agreements, students will gain hands-on experience in crafting and negotiating legal documents. This practical approach continues as we look at other topics such as security interests, guarantees and derivatives.

As the global banking landscape continues to evolve, we consider contemporary issues such as digital assets, central bank digital currencies (“CBDCs”), tokenisation as well as Environmental, Social and Governance (“ESG”) issues in the banking sector. In the wake of the 2023 banking turmoil, we also explore the role of bank deposits and deposit insurance in the financial system. 

By the end of this course, students will not only understand the key legal and regulatory principles in the field of banking, but will also acquire practical skills in analysing, drafting and negotiating key agreements used in banking transactions. These analytical and practical skills are highly transferrable to other areas of law.

About the lecturer

This course is taught by Andrew Fei, a partner in the Banking and Finance department at King & Wood Mallesons in Hong Kong.  Andrew has over a decade of experience in the areas of financial regulation, syndicated loans, structured finance, derivatives, fintech, digital assets, capital markets and securitisation.  Andrew has advised many major financial institutions, corporates and fintech companies on a wide range of innovative structured finance transactions, cross-border derivatives transactions, close-out netting and collateral arrangements, syndicated financing transactions, Basel III regulatory capital instruments, securities financing transactions, financial regulatory matters as well as digital assets-related transactions and arrangements.

Andrew was named “Rising Star Partner” in Capital markets: Structured finance and securitisation by IFLR1000 in 2023 and “Leading Lawyer” in Capital Markets: Securitisation & Derivatives by Chambers Greater China Region Guide in 2024.  Andrew has been quoted as an expert on various banking and finance matters in the international press, and frequently speaks and writes on these topics.

Course Overview

Aims and Objectives

The overall aim of this course is to provide students with a solid understanding of the laws, regulations and policies that affect the banking industry, as well as the key legal documents used in banking transactions. 

The key objectives of the course are as follows:

1. Comprehensive Understanding: To provide students with a comprehensive understanding of banking law and practice, covering both theoretical concepts and practical applications.

2. Regulatory Knowledge: To equip students with a deep understanding of evolving global banking laws, policies and regulations, with a particular focus on capital, liquidity, and prudential requirements. 

3. Legal Skills Development: To enhance students' practical legal skills, particularly in analysing and drafting legal documents related to banking transactions, including loans, security agreements and guarantees.

4. Critical Analysis: To encourage students to critically analyse legal and regulatory issues in the banking sector, especially in the context of recent market and regulatory developments.

5. Industry Relevance: To ensure that students are well-prepared to address contemporary challenges in banking law, including those related to digital assets, ESG and the aftermath of recent banking crises.

Teaching / Learning Methodology / Methods

The course is organised in a traditional lecture / seminar format, based on the application of international and domestic laws, principles and regulations in Hong Kong. Student participation is encouraged and will form part of the learning experience through class participation.

Course Organisation / Coverage

The course is organised to focus on the business of banking, global regulatory standards, the regulatory framework in Hong Kong, legal documents for banking transactions as well as future legal and regulatory trends in banking.

Course Outcomes

At the end of the course, students should:

• Have a sound understanding of the roles and functions of banks within the global and local financial systems.
• Grasp key legal and regulatory principles and appreciate how they can be applied in practice to mitigate some of the risks associated with the business of banking.
• Be familiar with the structure and features of loan agreements, security agreements, guarantees, derivatives master agreements and other legal agreements used to document banking transactions.

Reading list

• Hong Kong Monetary Authority (“HKMA”) Guide to Authorization, available at: https://www.hkma.gov.hk/eng/regulatory-resources/regulatory-guides/guide-to-authorization/
• Federal Reserve Bank of Kansas City, Basics for Bank Directors, available at: https://www.kansascityfed.org/Banking/documents/209/BasicsForBankDirectors_KCFed.pdf
• Select executive summaries published by the Financial Stability Institute (“FSI”) under the auspices of the Bank for International Settlements (“BIS”): https://www.bis.org/fsi/publications.htm (filter for ‘Executive Summaries’ in the ‘Series’ dropdown menu).  The specific executive summaries that you should read are set out in the reading list for each seminar. 

Supplemental reading

• Goode and Gullifer on Legal Problems of Credit and Security (7^th Edition)

Other useful resources / materials are publicly available and can be found on the following websites:

• HKMA: https://www.hkma.gov.hk/
• Securities and Futures Commission of Hong Kong (“SFC”): https://www.sfc.hk
• FSI: https://www.bis.org/fsi/index.htm 
• Financial Stability Board (“FSB”): https://www.fsb.org/
• Basel Committee on Banking Supervision (“Basel Committee”): https://www.bis.org/bcbs/index.htm

Relevant Laws and Other Materials

The course will begin by addressing the development and application of global banking standards, which are largely based on non-binding (but highly technical and prescriptive) standards developed by international bodies such as the Basel Committee and the FSB. Later in the course, there will be a focus on Hong Kong ordinances and the application of common law principles. Frequent use will be made of Hong Kong and international statutes, case law and international standards throughout the course.

Assessment

The course assessment will be based on a combination of:

• Class participation (20%): This will comprise of a combination of class attendance and asking questions. This assessment is graded on a pass / fail basis.
• Take-home examination (80%): The take-home examination will be distributed on [*] and is due [72 hours later] (absolute deadline – no further extension will be approved). The take-home examination must be completed individually. The maximum length for the take-home examination is 3,500 words (including footnotes but excluding any bibliography). The exam will be distributed and submitted via Moodle.

The take-home exam will be graded based on quality of legal analyses, written expression and demonstrated familiarity with course materials / lectures / class presentations and subject-matter. If handed in late, your exam paper will be penalised at the rate of 5 points out of 100 per day and will not be accepted later than 7 calendar days after the deadline.

The Law Faculty’s rules prohibiting cheating, plagiarism and taking unfair advantage apply strictly to both written assignments and exam papers.

No plagiarism, etc.

Note that all written work will be run through plagiarism detection software as part of the submission process.

Attendance

Regular class attendance and class participation is expected. Generally, one does not meet this standard through conspicuous and regular absence or through inadequate class preparation. In addition, the structure of this class as a lecture / seminar encourages participation by students.

Preparation

Each student should read assigned resources and undertake (if requested) any additional reading specifically required for a particular pre-assigned topic.

Course Syllabus

Seminar No. 1:  Course Outline; Introduction to Banks and the Business of Banking 

[Date: Thursday, 12 September]

In this session, we will explore the fundamental roles and functions of banks within the financial system. We will examine the various types of banks, including commercial banks, investment banks, policy banks, digital banks and central banks, and their unique contributions to the economy. Key concepts such as lending, borrowing, risk management, and financial intermediation will be discussed. This session will also introduce the basic structure and operations of a typical bank, setting the stage for more detailed study in subsequent modules.

Compulsory reading:

• International Monetary Fund, Banks: At the Heart of the Matter, available at: https://www.imf.org/en/Publications/fandd/issues/Series/Back-to-Basics/Banks
• Bank for International Settlements, The Role of Banks (BIS Papers No 83), available at: https://www.bis.org/publ/bppdf/bispap83b_rh.pdf
• John J Di Clemente, Federal Reserve Bank of Chicago, What is a Bank? available at: https://www.chicagofed.org/-/media/publications/economic-perspectives/1983/ep-jan-feb1983-part2-diclemente-pdf.pdf

Recommended reading:

• Basel Committee, Core Principles for Effective Banking Supervision (June 2024), available at: https://www.bis.org/bcbs/publ/d573.pdf
• Brookings Papers on Economic Activity, The Evolution of Banking in the 21st Century: Evidence and Regulatory Implication, available at: https://www.brookings.edu/wp-content/uploads/2024/02/6_Hanson-et-al_unembargoed_updated.pdf 

Seminar No. 2:  Evolution of Global Banking Regulation: Capital, Liquidity and Prudential Standards

[Date: Thursday, 19 September]

This session will trace the historical development of global banking regulations, focusing on the critical areas of capital adequacy, liquidity requirements and prudential oversight. We will review significant regulatory frameworks such as Basel I, II, III, and more recent Basel prudential regulatory developments. The impact of these regulations on banking practices and financial stability will be analysed, with attention to how they aim to prevent financial crises. Real-world examples will illustrate the challenges and successes of implementing these regulatory standards across different jurisdictions.

Compulsory reading:

• FSI, Overview of Basel III and related post-crisis reforms - Executive Summary, available at: https://www.bis.org/fsi/fsisummaries/b3_rpcr.pdf
• FSI, Basel Framework: scope of application - Executive Summary, available at: https://www.bis.org/fsi/fsisummaries/scope_app.pdf
• FSI, Definition of capital in Basel III - Executive Summary, available at: https://www.bis.org/fsi/fsisummaries/defcap_b3.pdf
• FSI, Liquidity Coverage Ratio (LCR) - Executive Summary, available at: https://www.bis.org/fsi/fsisummaries/lcr.pdf
• FSI, Net Stable Funding Ratio (NSFR) - Executive Summary, available at: https://www.bis.org/fsi/fsisummaries/nsfr.pdf

Recommended reading:

• Basel Committee, Basel III: A global regulatory framework for more resilient banks and banking systems - revised version June 2011, available at: https://www.bis.org/publ/bcbs189.pdf
• FSI, The G-SIB framework - Executive Summary, available at: https://www.bis.org/fsi/fsisummaries/g-sib_framework.pdf
• FSI, Pillar 3 framework - Executive Summary, available at: https://www.bis.org/fsi/fsisummaries/pillar3_framework.pdf
• Basel Committee, History of the Basel Committee and Its Membership (March 2001), available at: https://www.bis.org/publ/bcbsc101.pdf

Seminar No. 3:  Hong Kong Banking Law and Regulatory Principles

[Date: Thursday, 26 September]

In this module, we will delve into the specific legal and regulatory environment governing banks in Hong Kong. Key regulatory bodies, such as the HKMA and the SFC, and their roles will be discussed. We will examine the Banking Ordinance and other relevant legislation that outline the legal framework for banking operations and the provision of other types of financial products and services in Hong Kong. This module will also cover recent regulatory developments and their implications for banks operating in Hong Kong.

Compulsory reading:

• HKMA, Guide to Authorization (chapters 1, 2, 3 and 4 only), available at: https://www.hkma.gov.hk/eng/regulatory-resources/regulatory-guides/guide-to-authorization/
• FSB, Peer Review of Hong Kong - Review Report (section 3 (Framework for resolution of financial institutions) and Annex 1 (Structure of the financial system and regulatory framework)), available at: https://www.fsb.org/wp-content/uploads/P280218-1.pdf

Recommended reading:

• SFC, Licensing Handbook, available at: https://www.sfc.hk/-/media/EN/assets/components/codes/files-current/web/guidelines/licensing-handbook/licensing-handbook.pdf?rev=b2109e7546cb4080a66f40e645fc65ac
• Banking Ordinance (for reference only, no need to read in full), available at: https://www.elegislation.gov.hk/hk/cap155
• Securities and Futures Ordinance (for reference only, no need to read in full), available at: https://www.elegislation.gov.hk/hk/cap571

Seminar No. 4:  Bank Deposits, Deposit Insurance and Bank Resolution in the Aftermath of the 2023 Banking Turmoil

[Date: Thursday, 3 October]

This session will focus on the importance of bank deposits and the mechanisms in place to protect them, particularly in light of the 2023 banking turmoil. We will discuss the concept of deposit insurance, its role in maintaining depositor confidence, and how it operates in Hong Kong compared to other major financial centres. Case studies from the 2023 crisis will be used to highlight the effectiveness and limitations of current deposit insurance schemes and potential reform proposals. We will also consider the topic of the orderly resolution of banks and other financial institutions, including how the resolution process compares with court-led bankruptcy/insolvency proceedings. 

Compulsory reading:

• US Federal Deposit Insurance Corporation (“FDIC”), Options for Deposit Insurance Reform (July 2023), available at: https://www.fdic.gov/analysis/options-deposit-insurance-reforms/report/options-deposit-insurance-reform-full.pdf
• FSI, Bank resolution framework - Executive summary, available at: https://www.bis.org/fsi/fsisummaries/brf.pdf
• FSB, Peer Review of Hong Kong - Review Report (section 3 (Framework for resolution of financial institutions)), available at: https://www.fsb.org/wp-content/uploads/P280218-1.pdf

Recommended reading:

• Federal Reserve, Review of the Federal Reserve’s Supervision and Regulation of Silicon Valley Bank (April 2023), available at: https://www.federalreserve.gov/publications/files/svb-review-20230428.pdf
• FSI, Core Principles for Effective Deposit Insurance Systems – Executive Summary, available at: https://www.bis.org/fsi/fsisummaries/iadi_core_principles.pdf
• FSI, FSB Key Attributes - Executive Summary, available at: https://www.bis.org/fsi/fsisummaries/fsb_key_attributes.pdf
• FSB, Key Attributes of Effective Resolution Regimes for Financial Institutions, available at: https://www.fsb.org/wp-content/uploads/r_111104cc.pdf

Seminar No. 5:  Legal Documents and Drafting Techniques: Syndicated Loan Agreement Case Study (Part 1)

[Date: Thursday, 10 October]

Starting with this session, we shift gears from theory towards practice. In the first part of this case study, we will introduce the structure and key components of a syndicated loan agreement. Students will learn about the roles of different parties to the agreement, and their legal relationships with each other. We will dissect the major clauses in a typical syndicated loan agreement, focusing on terms related to interest, payment mechanisms, representations and undertakings. Practical drafting tips and common pitfalls will be discussed to equip students with the basic skills needed to draft and negotiate loan agreements.

Compulsory reading:

• A Borrower’s Guide to the Asia Pacific Loan Market Association Syndicated Facility Agreement for Investment Grade Borrowers (June 2015), available at: https://actatreasury.com.au/wp-content/uploads/2015/06/A-Borrowers-Guide-to-the-Asia-Pacific-Loan-Markets-Association-Syndicated-Facility-Agreement-second-edition-5.pdf

Recommended reading:

• A Borrower’s Guide to the LMA’s Investment Grade Agreements (6th Edition) (November 2022), available at: https://www.treasurers.org/system/files/The%20ACT%20Borrower%E2%80%99s%20Guide%20to%20the%20LMA%E2%80%99s%20Investment%20Grade%20Agreements%20-%20Final.pdf 

Seminar No. 6:  Legal Documents and Drafting Techniques: Syndicated Loan Agreement Case Study (Part 2)

[Date: Thursday, 24 October]

Continuing from the previous session, this module will delve deeper into the drafting and negotiation techniques involved in a syndicated loan agreement. We will focus on common definitions and clauses and will consider common drafting techniques that are used to ‘close’ loopholes and make the provisions ‘future proof’.  This hands-on approach will help students develop a nuanced understanding of the legal and commercial aspects of loan documentation. 

Compulsory reading:

• A Borrower’s Guide to the Asia Pacific Loan Market Association Syndicated Facility Agreement for Investment Grade Borrowers (June 2015), available at: https://actatreasury.com.au/wp-content/uploads/2015/06/A-Borrowers-Guide-to-the-Asia-Pacific-Loan-Markets-Association-Syndicated-Facility-Agreement-second-edition-5.pdf

Recommended reading:

• A Borrower’s Guide to the LMA’s Investment Grade Agreements (6th Edition) (November 2022), available at: https://www.treasurers.org/system/files/The%20ACT%20Borrower%E2%80%99s%20Guide%20to%20the%20LMA%E2%80%99s%20Investment%20Grade%20Agreements%20-%20Final.pdf

Seminar No. 7:  Security Interests and Guarantees in Banking Transactions

[Date: Thursday, 31 October] 

In this session, we will explore the legal concepts and practical applications of security interests and guarantees in banking transactions. We will discuss the various types of security interests, focussing on charges and mortgages, and how they are created and perfected under Hong Kong law. The role of guarantees in mitigating credit risk will also be examined. Case studies will illustrate common issues and solutions in securing loans and other financial transactions.

Compulsory reading:

• Goode and Gullifer on Legal Problems of Credit and Security (7^th Edition), Chapter 1: The Nature and Forms of Consensual Security
• Sample charge over receivables, publicly available here: https://www.sec.gov/Archives/edgar/data/1763197/000119312519255838/d637426dex1026.htm
• Sample deed of guarantee and indemnity, publicly available here: https://www.sec.gov/Archives/edgar/data/1650575/000121390018008637/fs12018a2ex10-25_borqstechno.htm

Recommended reading:

The following chapters of Goode and Gullifer on Legal Problems of Credit and Security (7^th Edition):

• Chapter 2. Attachment And Perfection of a Security Interest: General Considerations
• Chapter 3. Attachment, Perfection and Effects of Fixed Security in Non-Documentary Receivables
• Chapter 4. The Floating Charge
• Chapter 5. Fixed and Floating Charges: Some Problems of Priority
• Chapter 6. Interests in Financial Collateral

Seminar No. 8:  Derivatives – Regulation and Legal Documentation

[Date: Thursday, 7 November]

This session will consider the world of derivatives, focusing on their regulation and related legal documentation. We will explain the different types of derivative instruments, such as forwards, options and swaps, and their use for risk management and speculative/investment purposes. The regulatory framework for derivatives in Hong Kong and globally will be analysed, highlighting key regulatory themes. Students will also learn about the International Swaps and Derivatives Association (“ISDA”) Master Agreement and other standard legal documents used in derivative transactions.

Compulsory reading:

• ISDA Video: Understanding the ISDA Master Agreement, available at: https://www.isda.org/2022/05/11/video-understanding-the-isda-master-agreement/
• ISDA, 2002 ISDA Master Agreement, available at: https://www.gbm.hsbc.com/-/media/media/gbm-global/gbm-refresh/financial-regulations/attachments/2002-isda-ma.pdf?view=1
• ISDA, Evolution of OTC Derivatives Markets Since the Financial Crisis (January 2021), available at: https://www.isda.org/a/8jjTE/Evolution-of-OTC-Derivatives-Markets-Since-the-Financial-Crisis.pdf

Recommended reading:

• ISDA, User’s Guide to the ISDA 2002 Master Agreement, available at: https://www.rbccm.com/assets/rbccm/docs/legal/doddfrank/Documents/ISDALibrary/Users%20Guide%20to%20the%202002%20ISDA%20Master%20Agreement.pdf
• Legislative Council of Hong Kong, Overview of the Regulation of Over-the-counter Derivative Market, available at: https://www.legco.gov.hk/yr12-13/english/bc/bc12/papers/bc120724cb1-1608-1-e.pdf
• FSI, Margin requirements for non-centrally cleared derivatives - Executive Summary, available at: https://www.bis.org/fsi/fsisummaries/margin_reqs.pdf
• FSI, Counterparty credit risk in Basel III - Executive Summary, available at: https://www.bis.org/fsi/fsisummaries/ccr_in_b3.pdf

Seminar No. 9:  Digital Assets and Banking Regulation

[Date: Thursday, 14 November]

In this session, we will examine the emerging field of digital assets and their interaction with the banking system. Topics will include cryptocurrencies, stablecoins, central bank digital currencies (“CBDCs”) and tokenisation, along with the legal and regulatory issues they pose. We will discuss how banks are adapting to the rise of digital assets, including issues related to custody, consumer protection and regulatory capital treatment. The role of regulatory sandboxes and other innovative approaches to regulation will also be explored.

Compulsory reading:

• FSB, High-level Recommendations for the Regulation, Supervision and Oversight of Crypto-asset Activities and Markets: Final report (July 2023), available at: https://www.fsb.org/wp-content/uploads/P170723-2.pdf
• FSI, Central Bank Digital Currencies Executive Summary, available at: https://www.bis.org/fsi/fsisummaries/cbdcs.pdf
• FSI, Prudential treatment of cryptoasset exposures – Executive Summary, available at: https://www.bis.org/fsi/fsisummaries/crypto_exposures.pdf

Recommended reading:

• HKMA, Circular on risk management considerations related to the use of distributed ledger technology, available at: https://www.hkma.gov.hk/media/eng/doc/key-information/guidelines-and-circular/2024/20240416e1.pdf 
• SFC, Circular on intermediaries engaging in tokenised securities-related activities, available at: https://apps.sfc.hk/edistributionWeb/api/circular/openFile?lang=EN&refNo=23EC52
• HKMA, Circular on provision of Custodial Services for Digital Assets, available at: https://www.hkma.gov.hk/media/eng/doc/key-information/guidelines-and-circular/2024/20240220e4.pdf

Seminar No. 10:  ESG and Banking

[Date: Thursday, 21 November]

This session will focus on the growing importance of environmental, social, and governance (“ESG”) issues to the banking sector. We will discuss how ESG considerations are reshaping the banking industry, from lending practices to risk management and regulatory compliance. We will then take a deeper dive into green loans, sustainability-linked loans and sustainability-linked derivatives from a legal documentation perspective. 

Compulsory reading:

• Green Loan Principles, available at: https://www.lsta.org/content/green-loan-principles/
• Sustainability-linked Loan Principles, available at: https://www.lsta.org/content/sustainability-linked-loan-principles-sllp/
• Basel Committee, Principles for the effective management and supervision of climate-related financial risks, available at: https://www.bis.org/bcbs/publ/d532.pdf

Recommended reading:

• FSI, The regulatory response to climate risks: some challenges (FSI Briefs No 16), available at: https://www.bis.org/fsi/fsibriefs16.pdf
• Basel, Frequently asked questions on climate-related financial risks, available at: https://www.bis.org/bcbs/publ/d543.pdf

Seminar No. 11:  Putting It All Together: Recent Market and Regulatory Developments

[Date: Thursday, 28 November]

In this session, we will synthesize the key themes and lessons from the course by examining recent market and regulatory developments in the banking sector. We will analyse current trends, such as the impact of technological innovation, regulatory changes, and macroeconomic factors on banks. Case studies of significant events and regulatory responses will be used to illustrate how theoretical concepts are applied in practice. This session will also provide an opportunity for students to explore future challenges and opportunities in banking law.

Compulsory reading:

• FSB, 2023 Bank Failures: Preliminary lessons learnt for resolution, available at: https://www.fsb.org/wp-content/uploads/P101023.pdf
• Basel Committee, Report on the 2023 banking turmoil, available at: https://www.bis.org/bcbs/publ/d555.pdf
• Basel Committee, Digitalisation of finance (May 2024), available at: https://www.bis.org/bcbs/publ/d575.pdf

Recommended reading:

• Basel Committee, Principles for the sound management of third-party risk, available at: https://www.bis.org/bcbs/publ/d577.pdf
• HKMA, latest available Half-Yearly Monetary & Financial Stability Report, available at: https://www.hkma.gov.hk/eng/data-publications-and-research/publications/half-yearly-monetary-financial-stability-report/

Course outline

The course will appraise the impact of financial and information technologies on banking and other financial services providers, as it closely follows the legal and regulatory developments in equity and debt finances in Hong Kong and globally leading FinTech hubs.

The course will focus on financial technology (FinTech) and regulatory technology (RegTech), used increasingly by financial institutions and their regulators to enhance regulatory compliance in and supervision of a sophisticated and fast-changing financial sector. A major part of the course syllabus will involve the systematic analysis of the emerging opportunities brought about by open banking for both traditional and challenger banks, virtual banks and their business model(s) and the Hong Kong Monetary Authority’s Open API Framework for the Hong Kong Banking Sector. To that end, the course will also highlight the challenges faced by banking institutions, including traditional banks and virtual banks, in complying with the Personal Data (Privacy) Ordinance, the key data protection law in Hong Kong. In this regard, the thematic focuses will be on (1) data protection law in the digital banking era, in general; and (2) data governance (including data security) in the implementation of open banking, in particular.

Other special focuses of the course include equity and debt-based crowdfunding, denoting a tripartite relationship among the crowdfunding platform (CFP) operator, the fundraiser (i.e. the company that raises funds through the CFP) and the investors (crowdfunders).

Behavioural economics postulates that not all investors are rational, including both unsophisticated individual investors and sophisticated institutional investors (such as mutual funds, pension funds and insurance companies). Regulation may thus be used to impose on the issuer (i.e. the company that raises funds by issuing securities) a duty to disclose information about its business plan and finance forecast with a view to curbing the lemon problem. Likewise, investors must prove their financial eligibility to be allowed to invest in equity crowdfunding. In general, the securities sector is characterised by consumer protection and an investor-disclosure system.

The course will shed light on the legal and regulatory requirements, along with supervisory and policy measures, towards FinTech alternative finance at both local and international levels. Requirements, measures and standards set by international regulatory bodies such as the Global Partnership for Financial Inclusion, the G20, the OECD, theFinancial Stability Board and the Bank for International Settlements will be closely examined. Combining supervisory approaches—for instance, the principle-based approach and the cost-benefit approach—with academic approaches, the course will promote and enable technical, theoretical, comparative, and interdisciplinary studies for students who are interested in or preparing to enter a FinTech-related career. The course is also practical and industry focused, reflecting on and closely following industry reports such as KPMG’s annual banking and anti-money laundering reports, along with Deloitte’s RegTech and FinTech survey reports. Designed to enhance creativity, critical thinking and deep learning, the course will foster an intimate understanding of regulations and policies on FinTech, RegTech and SupTech. Topics and issues covered in this course are diverse and wide-ranging and will include financial inclusion and digital financial inclusion, the digital banking model (implemented by virtual banks, which are also known as digital banks), FinTech and RegTech (with subordinated themes such as Sandbox, Open Banking, Application Programming Interface and Wealth Management Technology), P2P Lending, Equity Crowdfunding, Payments and Payment Technology (including Central Bank Digital Currency and Stablecoins).

The course will first introduce FinTech innovations such as blockchain, artificial intelligence, robo adviser solution and big data, all of which are exemplary of information technology, followed by an exploration of the types of FinTech-enabled products and payment services such as crowdfunding and P2P lending, and ending with a forward looking approach in tackling some critical and timely issues related to FinTech, including, but not limited to, financial democratisation, improving access to financial system, sharing economy, data governance and control and privacy protection for consumers.

Use of Artificial intelligence (“AI”)

AI is an important aspect to the subject being taught.  Understanding how it operates is important to understanding how it is and will be used and regulated in the future.  

The use of AI is permitted in students’ research as an enhanced learning and research tool only. It is not a substitute for appropriate references and its use must be proportionate and supervised.  AI must not be over-used (as explained in the University guidelines) and must not offend the usual academic responsibilities of a student.

Lecturer contact

The best time to see the lecturer is during breaks in class or immediately after each class or by appointment. The lecturer may be contacted via email at peter@cashinhk.com

Course materials

Lecture slides will be made available on Moodle after each class. 

Recommended Reading

Primary sources:

Anti-Money Laundering and Counter-Terrorist Financing Ordinance (Cap. 615)

Banking Ordinance (Cap. 155)

Hong Kong Association of Banks Code of Banking Practice

Insurance Ordinance (Cap. 41)

Mandatory Provident Fund Schemes Ordinance (Cap. 485)

Payment Systems and Stored Value Facilities Ordinance (Cap. 584)

Securities and Futures Ordinance (Cap. 571)

Secondary reading:

Ronit Ghose “Future Money: From Fintech to Web 3”, Kogan Page, 2024

Kevin Lee “Butterworths Hong Kong Banking Law Handbook”, 6ed, Butterworths, 2023

Bernard Mak, Brian Lo, Candice Lau, Ernest C Y Ng, Jason Gerber, Lok Ho, Mike Yeung Vincent Lung “Butterworths Hong Kong Securities Law Handbook”, 7ed, Butterworths, 2022

Additional readings:

Will be given during lectures

Websites

·     Hong Kong Monetary Authority https://www.hkma.gov.hk

·     Hong Kong Association of Banks https://www.hkab.org.hk/en

·     HK ordinances https://www.elegislation.gov.hk

·     Insurance Authority https://www.ia.org.hk/en/index.html

·     Mandatory Provident Funding Schemes Authority https://www.mpfa.org.hk/en

·     Securities and Futures Commission https://www.sfc.hk/en/

Moodle page for Subclass 1A of MATH1013

Follow-up and submission of reports after the Clinical and Laboratory Interphase Teaching

(a)    Students are required to follow up on the patient at least once, if possible.^

(b)    Each student has to submit ONE case report (template attached) on ANY case that is covered in the 2 teaching sessions (i.e., ONE microbiology case report for Block B Microbiology Clinical Laboratory Interphase Teaching) through Moodle platform.

(c)    The reports should include content under the following headings:

 ^When the “Emergency Response Level” is in effect, there is no need to follow-up the patient.