We use cookies to enhance your experience on our website. By continuing to use our website, you are agreeing to our use of cookies. You can change your cookie settings at any time.
Find out more
Jump to Content
Jump to Main Navigation
User Account
Personal Profile:
Sign in
or
Create
See all online law products
More
About
Guided Tour
Subscriber Services
Contact Us
FAQ
Help
Search
Browse all
Area of law
Financial Law [FBL]
International Commercial Arbitration [ICMA]
Private International Law [PRIL]
International Commercial Law [ICML]
Author
My Content
(0)
My Searches
(0)
Print
Email
Subscriber sign in
Forgotten your password?
Don't have an account?
Sign in via your Institution
Sign in with your library card
View translated passages only
Oxford Law Citator
Contents
Expand All
Collapse All
The Law of Financial Advice, Investment Management, and Trading by van Setten, Lodewijk (14th February 2019)
Preliminary Material
Preface
Summary Contents
Contents
Table of Cases
Table of Legislation
European Union
Decisions
Directives
Regulations
Netherlands
United Kingdom
United States
Table of International Instruments
Table of Rules and Guidelines
Main Text
1 Overview and Glossary
Preliminary Material
A Subject Matter, Objective, and Organization of This Book
1.01
1.02
1.03
1.04
1.05
1.06
B The Investment Cycle and the Investment Professionals
1 The stages of the investment cycle
1.07
1.08
1.09
1.10
1.11
1.12
1.13
1.14
2 Investment services are professional services
1.15
1.16
1.17
C The Inherent Risks of the Investment Cycle
1 Conduct risk
1.18
1.19
1.20
1.21
1.22
1.23
1.24
1.25
1.26
2 Product governance is a special form of conduct risk management
1.27
1.28
1.29
1.30
1.31
1.32
1.33
1.34
1.35
1.36
3 Credit and systemic risks
1.37
1.38
1.39
1.40
1.41
1.42
1.43
D Investment Firms as Agents of the Investor
1 The creation and use of agency authority
1.44
1.45
1.46
1.47
1.48
1.49
1.50
1.51
2 Apparent authority
1.52
1.53
1.54
1.55
1.56
3 Disposition of property
1.57
4 Warranty of agency authority
1.58
1.59
5 Conflict of laws
1.60
1.61
E Glossary
1.62
1.63
1.64
1.65
1.66
1.67
1.68
1.69
1.70
1.71
1.72
1.73
1.74
1.75
1.76
1.77
1.78
1.79
2 Financial Assets and Investment Risk
Preliminary Material
A Financial Assets
1 What is a financial asset?
2.01
2.02
2.03
2.04
2 Primary financial assets: equity and debt interests
2.05
2.06
2.07
2.08
2.09
2.10
3 Secondary financial assets: collective investment schemes and securitization
2.11
2.12
2.13
2.14
2.15
2.16
2.17
4 Meta-financial assets: derivatives
2.18
2.19
5 Securities financing and short selling transactions
2.20
2.21
2.22
2.23
2.24
B Investment Risk
1 The value of a financial asset
2.25
2.26
2.27
2.28
2.29
2.30
2.31
2.32
2.33
2 The concept of ‘risk’
2.34
2.35
2.36
2.37
2.38
2.39
3 The concept of ‘investment risk’
2.40
2.41
2.42
2.43
4 Measuring investment risk: volatility
2.44
2.45
2.46
2.47
5 Measuring investment risk: tail risk
2.48
2.49
2.50
2.51
6 Measuring investment risk: stress testing
2.52
C Investment Risk in a Portfolio Context: The Effect of Covariance
1 Investment risk reduction through diversification
2.53
2.54
2.55
2 Short selling increases investment opportunities
2.56
2.57
2.58
D Optimizing Risk and Return Relationships
1 Returns that relate to systematic risk factors (beta)
2.59
2.60
2.61
2.62
2.63
2.64
2.65
2.66
2.67
2 Informational efficiency of the markets
2.68
2.69
2.70
2.71
2.72
3 Returns that are not related to market factors (alpha)
2.73
2.74
2.75
2.76
2.77
4 Measuring alpha
2.78
2.79
2.80
2.81
5 Relative risk: tracking error
2.82
2.83
3 Safeguarding Financial Assets
Preliminary Material
A Safeguarding Ownership Rights in Account-based Assets
1 Money and securities are fungible assets
3.01
3.02
3.03
2 The MiFID II duty to safeguard money and securities
3.04
3.05
3.06
3.07
3.08
3.09
3.10
3.11
B Safeguarding Money
1 Amounts owed as a bank and netting in current account
3.12
3.13
3.14
3.15
3.16
3.17
3.18
3.19
3.20
3.21
2 Amounts owed not as a bank but as an investment firm: client money pools
3.22
3.23
3.24
3.25
3.26
3.27
3.28
3.29
3.30
3.31
3.32
C Safeguarding Securities
1 Immobilization and dematerialization of securities
3.33
3.34
3.35
3.36
3.37
3.38
3.39
2 Safeguarding the cross-border custody chain
3.40
3.41
3.42
3.43
3.44
3.45
3 Securities accounts create equitable co-ownership
3.46
3.47
3.48
3.49
3.50
3.51
3.52
3.53
3.54
3.55
3.56
3.57
3.58
3.59
3.60
3.61
3.62
4 English law and the chain of custody
3.63
3.64
3.65
5 Settlement of the trust on a common fund of client securities
3.66
3.67
3.68
3.69
3.70
6 The hybrid legal nature of the securities account
3.71
3.72
3.73
D Safeguarding CCP Cleared Contracts
1 Clearing of contracts in a CCP system
3.74
3.75
3.76
3.77
3.78
3.79
3.80
3.81
3.82
3.83
3.84
2 Safeguarding CCP cleared contracts and collateral
3.85
3.86
3.87
3.88
3.89
3.90
3.91
3.92
3.93
E Mitigating Counterparty Risk: Collateralization and Netting
1 Collateralization and netting techniques
3.94
3.95
3.96
3.97
3.98
3.99
3.100
3.101
3.102
3.103
3.104
3.105
3.106
2 Protection of financial collateral (the Collateral Directive)
3.107
3.108
3.109
3.110
3.111
3.112
3.113
3.114
3.115
3.116
4 Legal and Regulatory Duties to Protect the Client’s Interest
Preliminary Material
A Information about the Financial Asset and the Investment Service
1 The investor relies on information from the investment firm
4.01
4.02
2 Misrepresentation
4.03
4.04
4.05
4.06
4.07
4.08
4.09
4.10
4.11
3 The notion of ‘assumption of responsibility’ at law
4.12
4.13
4.14
4.15
4.16
4.17
4.18
4.19
4.20
4.21
4.22
4 ‘Assumption of responsibility’ versus ‘appropriateness’ and ‘suitability’
4.23
4.24
4.25
4.26
4.27
4.28
4.29
4.30
4.31
5 Suitability in the context of portfolio management
4.32
4.33
4.34
4.35
6 Effect of client classification on the scope of the regulatory responsibility
4.36
4.37
4.38
4.39
4.40
4.41
B Caveat Emptor versus the Client’s Interest
1 The client’s best interest rule of MiFID II
4.42
4.43
4.44
4.45
4.46
4.47
4.48
4.49
2 Fiduciary duties
4.50
4.51
4.52
4.53
4.54
4.55
3 The client’s best interest rule of MiFID II versus fiduciary duties
4.56
4.57
4.58
4.59
4.60
4.61
4.62
4.63
C MiFID II’s Control Framework for Conflicts of Interest
1 Categories of conflicts: MiFID II versus equity
4.64
4.65
4.66
4.67
4.68
4.69
4.70
4.71
4.72
4.73
4.74
4.75
2 Special conflict rules: inducements
4.76
4.77
4.78
4.79
4.80
3 Special conflict rules: remuneration
4.81
4.82
4.83
4.84
5 Client Agreements and Compensatory Damages
Preliminary Material
A Client Agreements and the Applicable Standard of Skill and Care
1 Construction of client agreements
5.01
5.02
5.03
5.04
5.05
5.06
5.07
2 Pre-contractual dealings
5.08
5.09
5.10
5.11
5.12
5.13
3 Standard of care, agency, and other duties implied by law
5.14
5.15
5.16
5.17
5.18
5.19
5.20
5.21
4 Implied duties of the client
5.22
5.23
5.24
5 The regulatory standards of care and construction of the client agreement
5.25
5.26
5.27
6 The (remarkable) provision of Article 69(2) of MiFID II
5.28
5.29
5.30
5.31
5.32
5.33
5.34
5.35
7 Exclusion of liability
5.36
5.37
5.38
5.39
5.40
5.41
B Subcontractors (Outsourcing)
1 Governance and control of outsourcing risks
5.42
5.43
5.44
5.45
5.46
5.47
5.48
2 Authority to delegate and liability for outsourcing
5.49
5.50
5.51
5.52
5.53
5.54
5.55
5.56
5.57
5.58
5.59
C Compensatory Damages for Conduct Breaches
1 Losses from acts or omissions of an investment firm
5.60
5.61
5.62
5.63
5.64
2 The loss must have been caused by the breach
5.65
5.66
5.67
5.68
5.69
3 Remoteness of damages (scope) in contract, tort, and equity
5.70
a) Contract
5.71
5.72
5.73
5.74
5.75
b) Tort
5.76
5.77
5.78
5.79
5.80
5.81
5.82
5.83
5.84
5.85
c) Equity
5.86
5.87
d) Synthesis
5.88
5.89
5.90
5.91
4 Quantum of damages
5.92
5.93
5.94
6 Trading and Settlement
Preliminary Material
A Trading
1 Trading venues
6.01
6.02
6.03
6.04
6.05
6.06
6.07
6.08
6.09
6.10
6.11
6.12
6.13
6.14
6.15
6.16
2 Price forming and transparency
6.17
6.18
6.19
6.20
6.21
3 Order-driven trading services and broker conflicts
6.22
6.23
6.24
6.25
6.26
6.27
6.28
6.29
6.30
6.31
4 Trading capacity: broker or dealer?
6.32
6.33
6.34
6.35
6.36
6.37
6.38
5 Best execution
6.39
6.40
6.41
6.42
6.43
6.44
6.45
6.46
6.47
6.48
6.49
B Settlement
1 Post-trade discharge of cash and securities settlement obligations
6.50
6.51
6.52
6.53
6.54
6.55
6.56
6.57
6.58
6.59
6.60
6.61
6.62
2 Anatomy of a funds transfer
6.63
6.64
6.65
6.66
6.67
6.68
6.69
6.70
6.71
6.72
6.73
6.74
6.75
6.76
6.77
6.78
6.79
6.80
6.81
3 Anatomy of a book-entry securities transfer
6.82
6.83
6.84
6.85
6.86
6.87
6.88
6.89
6.90
6.91
6.92
C Settlement Finality
1 The importance of settlement finality
6.93
6.94
2 Payment and settlement systems do not pass the original property
6.95
6.96
6.97
3 Adverse claims sourced in law or equity
6.98
6.99
6.100
6.101
6.102
6.103
6.104
6.105
6.106
6.107
6.108
6.109
6.110
4 Adverse claims sourced in the Insolvency Act 1986
6.111
6.112
6.113
6.114
6.115
5 Protection of payment and settlement systems (the Settlement Finality Directive)
6.116
6.117
7 Investment and Wealth Management
Preliminary Material
A Investment Management
1 The legal characteristics of the investment management relationship
7.01
7.02
7.03
7.04
7.05
7.06
7.07
2 The function of the investment manager
7.08
7.09
7.10
7.11
7.12
7.13
7.14
7.15
3 Collective (pooled) portfolio management
7.16
7.17
7.18
4 Investment strategies and investment styles
7.19
7.20
7.21
7.22
7.23
7.24
7.25
7.26
7.27
7.28
7.29
7.30
7.31
5 The terms and conditions of the investment management agreement
7.32
7.33
7.34
7.35
7.36
7.37
7.38
7.39
7.40
7.41
7.42
7.43
7.44
6 The skill and care in the exercise of investment discretion
7.45
7.46
7.47
7.48
7.49
7.50
7.51
7.52
7.53
7.54
7.55
7.56
7.57
7.58
7.59
7 Trading by the investment manager
7.60
7.61
7.62
7.63
7.64
7.65
7.66
8 Best execution duties of an investment manager
7.67
7.68
7.69
7.70
7.71
7.72
7.73
7.74
7.75
7.76
B Wealth Management
1 A bundle of services
7.77
7.78
7.79
7.80
2 Advised transactions
7.81
7.82
7.83
7.84
7.85
7.86
7.87
Further Material
Index
Sign up for alerts
Table of International Instruments
From:
The Law of Financial Advice, Investment Management, and Trading
Lodewijk van Setten
Content type:
Book content
Product:
Financial Law [FBL]
Published in print:
14 February 2019
ISBN:
9780198826378
Prev
|
Next
Close
Go to full text on:
EUR-Lex
External Link
Oxford Law Citator
Users without a subscription are not able to see the full content. Please,
subscribe
or
login
to access all content.
[3.231.229.89]
3.231.229.89