The only book of its kind on this topical issue
Timely publication ahead of the new Basel II regime
Considers practical issues concerning management of legal risk
A highly respected author and name in financial law
This timely new book explains what legal risk means in the context of the financial
markets and why concerns about legal risk have grown in recent years. It also considers
how legal risk is intended to be addressed as part of operational risk under the new Basel
II regulatory regime.
McCormick traces the origins of legal risk as a phenomenon in the global financial
markets, particularly in the UK market, addressing how concerns about it have been dealt
with in light ofbeen landmark cases such as Hazell v Hammersmith & Fulham and Re
Charge Card. The formation of The Legal Risk Review Committee by the Bank of England and
the work of similar organizations, the Financial Law Panel at the Financial Markets Law
Committee are considered. The book analyses the principal components of legal risk, i.e.
litigation/regulatory action risk and defective documentation, as well as related risks,
such as reputational risk and political risk.
Analytical consideration is also given to current and recent legal risk concerns (in
relation to e.g. conflicts of interest, securities held through intermediaries, compliance
with anti-terrorism/money-laundering laws, settlement risk etc.) as well as older issues
regarding the efficacy of close-out, and multilateral, netting arrangements and insolvency
set-off and related legislation and case law.
The book also features a section on the management of legal risk including the role of
in-house counsel and compliance and the related regulatory aspects.
Readership: In-house lawyers at financial institutions and regulators; Lawyers in private
practice who specialise in banking and finance; Compliance and risk officers
Table of Contents
- Introduction
- Part I: History
- 1 A Landmark Case and its Aftermath
- 2 A Case of Conceptual Impossibility
- 3 Settling Differences
- Part II: Characteristics
- 4 Definition
- 5 Sources
- 6 Causation
- Part III: Examples
- 7 Property Interests in Indirectly Held Investment Securities
- 8 Vague Laws
- 9 Re-characterization
- Part IV: Management
- 10 The Essentials of Legal Risk Management
- 11 Lawyers Responsibility for the Management of Legal Risk
- Part V: Conclusions
- 12 A Risk-Based Approach to Law
Authors, editors, and contributors
Roger McCormick, Visiting Professor at the London School of Economics and Visiting
Lecturer at Oxford University
Hardback
350 pages