Reception Drinks and Welcoming Dinner

Changing constitutional position of central banks
Professor René Smits
Director, legal department, Netherlands Competition Authority
(former General Counsel, de Nederlandsche Bank)

A large proportion of the world’s central banks have received new mandates, expressed in legislative form, in the past few years. What implications does the trend towards central bank independence have for central banks and their legal advisers? What are the key changes involved and how do different statutes/legal frameworks actually affect governance and performance?

Constitutional change - mananging confidential information
Len Berkowitz
Senior consultant, Freshfields Bruckhaus Deringer and
former adviser to the governor and head of the legal unit, Bank of England

Often, changes in statutory responsibilities bring a host of second-level issues of implementation. If key functions, like supervision or debt management, are to be undertaken elsewhere, it is critical that information-sharing and coordination protocols are well thought out. The group will examine together some of the risks involved and how they can be resolved.

Comparative analysis of central bank statutes
Dr Christos Hadjiemmanuil
Lecturer in Law, London School of Economics (invited)

Despite sharing common functions, central banks and financial market authorities around the world enjoy widely differing powers. Experience shows that technical differences in institutional mandates have far-reaching consequences. This session examines the key statutory features of some key central banks and draws on the experiences of delegates own institutions to identify the features of an effective mandate.

Sovereign immunity and legal risk
Charles Proctor
Partner, Tite and Lewis

As central banks perform their many public policy roles (in monetary policy, and as supervisor, market participant, and agent of the government) they are exposed to a variety of legal risks. Increasingly, central banks and supervisors may find themselves forced to account for their actions in a judicial setting. We examine key recent cases and the future implications of this trend.

GOVERNANCE FOR CENTRAL BANKS AND SUPERVISORS

Accountability for central banks and supervisors
Chiara Zilioli
European Central Bank

As central banks and supervisors are given more autonomy, accountability – to parliament, public and via the media – becomes ever more critical. However, precisely what is accountability held to comprise, and how can it be squared with other core functions? This session offers a building block approach to thinking about accountability and explains how different audiences can best be satisfied.

Transparency and financial reporting
Andrew Hawkins
Partner, PricewaterhouseCoopers

Central banks are under pressure to adopt “best practice” when it comes to financial disclosure. What does this mean in practice? In particular, to what extent can and should central banks adopt the same accounting standards and practices as commercial banks? How does financial transparency contribute to the core tasks of the central bank or supervisor?

Corporate governance for central banks and supervisors
Dr Mads Andenas
Director of the British Institute of International and Comparative Law and
senior research fellow in company and commercial law

As central banks and supervisory agencies enjoy greater powers of discretion, it becomes increasingly important to focus on how that discretion is exercised. What, for instance, are the key internal safeguards and controls? This session examines what governance standards central banks and supervisory agencies should aspire to and how this can contribute to the agency’s effectiveness and reduce its risk profile.

Seigniorage and central bank financing
John Heath, Bank of England

Independent sources of financing, for instance central banks’ seigniorage revenues, are critical. This session examines the statutory financing arrangements for some key central banks.

INTERNATIONAL LEGAL ISSUES FOR CENTRAL BANKS AND SUPERVISORS

Cross-border fund transfer: the role of the central bank
Thomas Baxter
General Counsel, Federal Reserve Bank of New York

The recently issued core principles for large payment systems spell out central banks' responsibilities for their national payment system. However, important issues concerning croosborder, and in particular dollar, payments are still unresolved. Thomas Baxter, general counsel and executive vice president of the legal group at the Federal Reserve Bank of New York, discusses the issue.

Extraterritoriality and US banking regulation
Dr Kern Alexander
Judge Institute of Management, University of Cambridge

The US Financial Services and Modernization Act 2000 and the recent PATRIOT act provide US authorities with substantial new powers to regulate the global activities of multinational banks. This raises profound legal and cooperation issues for central banks. This talk will also address issues of extraterritorial legal process regarding money laundering.

Money laundering and terrorist financing
John Moscow
Manhattan Assistant District Attorney

Following the terrorist attacks on the US in 2001, international pressure over money laundering and terrorist funding has been significantly increased. Here, the UK’s representative on the Financial Action Task Force reviews developments, describes the likely next steps in this campaign and outlines the priorities for financial market authorities.

Coping with future financial crises: law and institutional-based implications
Mamiko Yokoi-Arai
Associate Director, London Centre for International Financial Studies

In response to financial crises, various international organisations have proposed a framework of international “soft law” to govern capital markets. This session examines the key elements of these international developments and how they are likely to impact official-sector institutions in the future.

Implications of the lender-of-last-resort function
Professor Geoffrey Wood
City University Business School

Central banks face no more controversial decisions than those involving their lender-of-last-resort role. Because decisions to provide emergency liquidity to the banking sector are frequently made in times of crisis, it is critical that central banks have well-thought-out legal and operational contingency plans. This session examines the impact of LOLR on the central bank’s core functions and the potential fiscal implications of such operations.

NEW LEGAL CHALLENGES FOR CENTRAL BANKS

Judicial review of central bank actions
Speaker to be confirmed

Increasingly, policy decisions by central banks and supervisory agencies are being questioned in the courts. The judicial overturning of decisions can seriously undermine the authority of central banks and regulators. This session examines the implications of this trend and how leading institutions address and mitigate the key risks involved.

ROUNDTABLE
Minimising the legal risk profile for central banks and supervisors

Roundtable discussion addressing the key steps which central banks and supervisors can take in order to minimise their legal risk profile.

The future of payment systems
Charles Goldfinger
Global Electronic Finance Management / Chairman, Financial Internet Working Group

This session considers the evolution of money and payment systems into the future. Will there be a proliferation of issuers and currencies? Alternatively will we see the emergence of a single global currency? How will digital value contracts evolve and what will be the regulatory implications?