Legal Risk in the Financial Markets

Tracing the origins of legal risk as a phenomenon in the global financial markets, particularly in the UK market, this book analyses the different components of legal risk in light of the global financial crisis, identifying characteristics, examples and management strategies, and analyses current and recent legal risk concerns as well as looking to the future. Fully updated from the first edition, Legal Risk in the Financial Markets includes substantial new material on the global financial crisis and its effects on legal risk, coverage of responses to the Crisis in the UK and elsewhere, including G20 proposals and EU initiatives, and substantial new material on globalisation issues. The book also considers the impact of case law, statute law and regulatory change on the management of legal risk.

Roger McCormick is a Senior Research Fellow, London School of Economics and Political Science and acts as a consultant on legal risk and related issues. He is also the director of the ISE Law and Financial Markets Project and the Editor of the Law and Financial Markets Review. He is a former partner of a major international law firm and has practiced law in the City of London (with a brief spell in Paris) for nearly 30 years.

Introduction
Part 1: The General Context
1: Why Legal Risk is Important: a Short History
2: Risk and Capital
3: Legal Risk in the London Market
4: The Global Context
5: The Law-maker, the Regulator and Current Preoccupations
Part 2: The Global Financial Crisis of 2007-9
6: Market and Regulatory Failure
7: The Initial Impact of the Crisis on the Financial Markets
8: Legal and Regulatory Responses to the Crisis in the UK
9: Response to the Crisis by the EU and Elsewhere
10: The Legal Risk Implications of the Crisis
Part 3: The Impact of Globalisation
11: Legal Risk in a Globalising Financial Market
12: Social Responsibility and Governance
13: The Role of International and Multilateral Institutions in Financial Law Reform
Part 4: Early Perceptions of Legal Risk
14: A Landmark Case and its Aftermath
15: A Case of Conceptual Impossibility
16: Settling Differences
Part 5: Characteristics of Legal Risk
17: Definition
18: Sources of Legal Risk
19: Causation
Part 6: Examples of Legal Risk
20: Property Interests in Indirectly Held Investment Securities
21: Vague Laws
22: Recharacterization
Part 7: Legal Risk Management
23: The Essentials of Legal Risk Management
24: Lawyers' Responsibility for the Management of Legal Risk
Part 8: Conclusions
25: A 'Risk-based Approach' to Law
Appendices
Introduction
Part 1: The General Context
1. Why Legal Risk is Important: a Short History
2. Risk and Capital
3. Legal Risk in the London Market
4. The Global Context
5. The Law-maker, the Regulator and Current Preoccupations
Part 2: The Global Financial Crisis of 2007-9
6. Market and Regulatory Failure
7. The Initial Impact of the Crisis on the Financial Markets
8. Legal and Regulatory Responses to the Crisis in the UK
9. Response to the Crisis by the EU and Elsewhere
10. The Legal Risk Implications of the Crisis
Part 3: The Impact of Globalisation
11. Legal Risk in a Globalising Financial Market
12. Social Responsibility and Governance
13. The Role of International and Multilateral Institutions in Financial Law Reform
Part 4: Early Perceptions of Legal Risk
14. A Landmark Case and its Aftermath
15. A Case of Conceptual Impossibility
16. Settling Differences
Part 5: Characteristics of Legal Risk
17. Definition
18. Sources of Legal Risk
19. Causation
Part 6: Examples of Legal Risk
20. Property Interests in Indirectly Held Investment Securities
21. Vague Laws
22. Recharacterization
Part 7: Legal Risk Management
23. The Essentials of Legal Risk Management
24. Lawyers' Responsibility for the Management of Legal Risk
Part 8: Conclusions
25. A 'Risk-based Approach' to Law
Appendices