Banking Reforms on the Table in Paris: Advice from Nottingham Expert

Paula Moffatt, Reader in Banking Law at Nottingham Law School and member of the Centre for Business and Insolvency Law, recently participated as a panellist at an ESMA Roundtable at their headquarters in Paris on 14 September 2016.

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Paula Moffatt

Paula Moffatt, Reader in Banking Law at Nottingham Law School and member of the Centre for Business and Insolvency Law, recently participated as a panellist at an ESMA Roundtable at their headquarters in Paris on 14 September 2016. The ESMA (the European Strategic Markets Authority), is an independent EU Authority that contributes to safeguarding the stability of the European Union's financial system. It does this by enhancing the protection of investors and promoting stable and orderly financial markets. As part of this process, the ESMA assesses risks to investors, markets, and financial stability. It is also in charge of forming a single rule book for EU financial markets and for promotion convergence in the practice of supervisory authorities.

The purpose of the roundtable was to gather evidence as part of a review of the rules on asset segregation and custody services, which has been open from July 2016 and concludes in late September. The policy goal of the consultation process is to see if the EU is in need of an enhanced framework for asset protection. This issue is critical in the investment sector, where investment vehicles are already required to comply with the UCITS and AIFM Directives, may nonetheless be affected by the differences in property and insolvency law in the EU Member States. Also as part of this process, the rules on segregation, by which assets are effectively marked out as representing the investments of particular clients, are being examined in detail. The ESMA is particularly interested in whether the framework for investor protection is adequate and robust so as to avoid the scenario of property ownership being called into question in case of the insolvency of any of the entities involved in the custody of assets.

Paula Moffatt, who is about to complete a Professional Doctorate on the evolution of the framework for property ownership in the case of dematerialised assets, typically the object of investment transactions, is particularly well-placed to be able to contribute to the ESMA consultation. Her recent work on the challenges facing the frameworks for large-scale insolvencies involving financial institutions, resulting in a chapter jointly authored with Professor Andrew Campbell (University of Leeds), contributed to the 'Research Handbook on Crisis Management in the Banking Sector' (published by Edward Elgar), makes her a leading expert in the area of financial institution failure.

Banking Reforms on the Table in Paris: Advice from Nottingham Expert

Published on 22 September 2016
  • Category: Nottingham Law School

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