Veidlapa Nr. M-3 (8)
Study Course Description
EU Investment Law
Course Code
JF_459
Branch of Science
Law
ECTS
3.00
Target Audience
Juridical Science; Management Science; Political Science
LQF
All Levels
Study Type And Form
Full-Time
Study Course Implementer
Course Supervisor
Jānis Grasis
Structure Unit Manager
Ieva Puzo
Structural Unit
Faculty of Social Sciences
Contacts
Dzirciema street 16, Rīga, szf@rsu.lv
About Study Course
Objective
By the end of the course the students will understand the basic principles of functioning EU capital markets (markets of financial instruments), rendering of investment services and Investors protection, as well as problematics of financial crime prevention in the securities sector.
The course provides deep understanding of EU investment services’ regulation. The central components of the course are Directive 2014/65/EU (MIFID II), Market Abuse Regulation No 596/2014 (MAR), which have been accomplished with Directive No 2014/57/EU on criminal sanctions for market abuse (CMAD) and related thereto implementing regulation and technical standards, as well as Investor protection topics. The course gives an understanding and skills to apply law reasoning to specific issues in the securities sector. In addition, the course examines evolving legal and practical problems of financial crime prevention specific to the investment services and securities sector. The course is intended for those students who are interested in understanding and future development of well functioning capital markets across Europe.
Prudential supervision on EU level is performed by ESMA (European Securities and Markets Authority[2]). ESMA library[3] by the essence is centralized storage of information (opinions, guidelines etc.) related to the topics discussed in the frame of the course.
Preliminary Knowledge
In International public law
Learning Outcomes
Knowledge
1.Upon successful completion of the course the students will have knowledge on: - Principles of functioning of securities sector and rendering of investment services; - Markets of Financial Instruments Directive and Investor protection rights; - EU Securities Financial Transaction Regulation and EU Financial Collateral Directive; - EU fundamental principles of capital markets; - Market Abuse Directive and problematics of tackling of financial crime in securities sector.
Skills
1.The students will be able to: - interpret and understand basic EU regulations in the investment services area; - interpret and understand EU regulations in the investors protections area; -to evaluate specific issues related to the investment services and apply legal reasoning to them; - describe / interpret specific issues in the discourse of different interests (investment service provider, investor, supervising authority).
Competences
1.After successful completion of the course the students will have the competence to: - recognize the violation of the Investor’s rights; -evaluate how foreign national law affects investment services; - recognize and assess different regulatory regimes in the investment services’ sector; - evaluate how EU and international laws affect national regulations in the securities sector; - recognize.
Assessment
Individual work
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Title
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% from total grade
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Grade
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1.
Individual work |
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-
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In preparation for the class presentation and the exam students read and analyse the recommended publications and a relevant case study, employing legal sources.
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Examination
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Title
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% from total grade
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Grade
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|---|---|---|
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1.
Examination |
-
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-
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Students will be evaluated 30% on class work and 70% on written exam. Students will be assessed on:
- Activity during interactive lectures;
- Quality and terms of individual tasks;
- In-depth case study analysis and presentation;
- Accuracy and precision of written exam answers.
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Study Course Theme Plan
FULL-TIME
Part 1
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Lecture
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Modality
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Location
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Contact hours
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Off site
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E-Studies platform
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2
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Topics
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1. Introduction into the basics of the Market of Financial Instruments:
1.1. The Market of Financial Instruments
1.2. Financial instruments. Simple and Complex financial instruments
1.3. Infrastructure and participants on the Market of Financial instruments
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Class/Seminar
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Modality
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Location
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Contact hours
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Off site
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E-Studies platform
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2
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Topics
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1. Introduction into the basics of the Market of Financial Instruments: 1.4. Transactions with Financial instruments (Sale-Purchase: Long, short positions, margin transactions, securities lending, Repo, buy/sell-back, title transfer collateral arrangements, Forex transactions)
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Class/Seminar
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Modality
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Location
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Contact hours
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|---|---|---|
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Off site
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E-Studies platform
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2
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Topics
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1. Introduction into the basics of the Market of Financial Instruments: 1.4. Transactions with Financial instruments (Sale-Purchase: Long, short positions, margin transactions, securities lending, Repo, buy/sell-back, title transfer collateral arrangements, Forex transactions)
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Lecture
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Modality
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Location
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Contact hours
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Off site
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E-Studies platform
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2
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Topics
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1. Introduction into the basics of the Market of Financial Instruments:
1.5. Risks (including custody and insolvency)
1.6. Accounts of the financial instruments.
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Lecture
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Modality
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Location
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Contact hours
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Off site
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E-Studies platform
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2
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Topics
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2. Overview of the EU regulation
2.1. Necessity of the regulation and basic principles
2.2. EU freedom to provide services and mutual recognition principle: EU passporting
2.4. The most important EU legislative acts in the field of rendering of Investment services.
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Class/Seminar
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Modality
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Location
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Contact hours
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Off site
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E-Studies platform
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2
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Topics
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2. Overview of the EU regulation 2.5. MIFID II (pre-MIFID and Post-MIFID (historical overview))
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Lecture
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Modality
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Location
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Contact hours
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Off site
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E-Studies platform
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2
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Topics
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3. Investment services 3.1. General information on Investment servise providers
3.2. Types of the Investment services and ancillary Investment services
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Lecture
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Modality
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Location
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Contact hours
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Off site
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E-Studies platform
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2
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Topics
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3. Investment services: 3.3. Investors protection. Review of the components
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Class/Seminar
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Modality
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Location
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Contact hours
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Off site
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E-Studies platform
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2
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Topics
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3. Investment services 3.4. Categorization of the customers. Suitability and appropriateness.
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Class/Seminar
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Modality
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Location
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Contact hours
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Off site
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E-Studies platform
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2
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Topics
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3 Investment services: 3.6. Conflicts of Interests and interests of the customer.
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Lecture
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Modality
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Location
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Contact hours
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Off site
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E-Studies platform
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2
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Topics
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3. Investment services
3.7. Order Execution Policy and the best execution result.
3.8. Safeguarding of the Assets and segregation requirements.
3.9. Complaints procedure.
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Lecture
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Modality
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Location
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Contact hours
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Off site
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E-Studies platform
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2
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Topics
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3. Investment services
3.7. Order Execution Policy and the best execution result.
3.8. Safeguarding of the Assets and segregation requirements.
3.9. Complaints procedure.
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Lecture
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Modality
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Location
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Contact hours
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|---|---|---|
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Off site
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E-Studies platform
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2
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Topics
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5. Prevention of the Financial crime: 5.1. Market Abuse Regulation
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Class/Seminar
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Modality
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Location
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Contact hours
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Off site
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E-Studies platform
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2
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Topics
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5. Prevention of the Financial crime: 5.2. Suspicious transactions with Financial Instruments (Case studies).
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Lecture
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Modality
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Location
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Contact hours
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Off site
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E-Studies platform
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2
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Topics
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5. Prevention of the Financial crime: 5.3. International sanctions
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Total ECTS (Creditpoints):
3.00
Contact hours:
32 Academic Hours
Final Examination:
Exam (Written)
Bibliography
Required Reading
1.
Haentjens M., Gioia-Carabellese P. European Banking and Financial Law. Routledge, 2015 (p. 13-70, 129-132, 136-152, 156-164, 196-207, 210-225)
2.
Alexander R.C.H. Insider Dealing and Money Laundering in the EU: Law and Regulation. University of London, Routledge, 2016
3.
Andenas M., and Chiu, I.H.Y. Future of Financial Regulation: Governance for Responsibility. Routledge, 2014 (p.16-110, 135-140, 237-273, 273-294)
4.
MiFID II (Markets in financial instruments directive 2014/65/EU)
5.
Commission Delegated Regulation (EU) 2017/565 (Organisational requirements and operating conditions for investment firms)
6.
Commission Delegated Regulation (EU) 2021/1254 (corrections of record keeping)
7.
Commission Delegated Directive (EU) 2017/593 (safeguarding of assets)
8.
Regulation (EU) 2015/2365 on transparency of securities financing transactions and of reuse and amending Regulation (EU) No 648/2012 (SFTR regulation)
9.
Directive 2002/47/EC On financial collateral arrangements
10.
Regulation (EU) No 596/2014 On market abuse (market abuse regulation)
11.
Directive 2014/57/EU On criminal sanctions for market abuse (market abuse directive)