| Unit name | Banking Law |
|---|---|
| Unit code | LAWDM0005 |
| Credit points | 30 |
| Level of study | M/7 |
| Teaching block(s) |
Teaching Block 4 (weeks 1-24) |
| Unit director | Professor. Stanton |
| Open unit status | Not open |
| Pre-requisites |
None |
| Co-requisites |
None |
| School/department | University of Bristol Law School |
| Faculty | Faculty of Social Sciences and Law |
Banking law has traditionally involved studying the legal relationship between banks and their customers, which rests on well-established rules of common law and statutory provisions. The financial world has been so volatile during recent years, however, that the unit has changed considerably. Although the traditional law, including the banker-customer relationship, negotiable instruments and other methods of payment, is still considered in depth, the student is also expected to consider modern developments in duties of care and constructive trusts, and is introduced to bank regulation (both domestically and in the EU) and to the effect of the revolution in technology on the law and practice of banking. The course includes study of developments such as the 1989 Jack Committee Report, the introduction of the Banking Code and the work of the Financial Services Ombudsman. The student will be expected to study aspects of consumer protection for customers and the current discussions about money laundering.
The unit is principally concerned with domestic banking law in the United Kingdom. It studies the legal relationships between banks and their customers. These relationships rest on well established rules of common law and statutory provisions. The unit considers the far reaching developments in the law of contract, tort, trusts and restitution, which have impacted on modern banking law. The variety of modern payment methods are discussed.
Protecting of the interests of customers in their dealings with banks forms an important part of this course. As such, the standards set by the codes of practice and the work of the Financial Ombudsman Services, Financial Services Compensation Scheme and the Office of Fair Trading are assessed. In addition, students will be studying the current discussions about money laundering and methods of safeguarding banks and customers from fraud.
These aspects of the course primarily concentrate on law and practice in the United Kingdom, but are clearly relevant to law and practice in other countries. Banking law traditionally involves studying the legal relationships between banks and their customers, which rest on established rules of common law and statutory provisions, such as those relating to negotiable instruments. The financial world has been so volatile during recent years, however, that the structure of any course in banking has had to change considerably to adapt. Traditional banking law is still considered in depth and payment methods like bills of exchange and cheques, while newer methods like plastic cards and internet banking and payment are also discussed.
We will explore bank regulation in detail including an examination of the underlying rational for regulatory and supervisory framework, the controversies surrounding the existence of bank regulation and the forces driving their evolution. This will be followed by a critical examination of the operational efficiency and effectiveness of the UK bank regulatory regime (including Northern Rock crisis), and the significant changes introduced by the Banking Act 2009 and the Financial Services Act 2010 aimed at strengthening bank regulation. This will also involve examining the reform proposals of the Independent Commission on Banking (2011) along with the Financial Services Act 2012 which was based on the HM Treasury White Paper: A new approach to financial regulation: the blueprint for reform (2011) Cm 8083. We will also examine aspects of EU Bank Regulation (including harmonisation of banking regulation, “European Passport” or single banking licence and the role of European Banking Authority).
The effect of the revolution in technology and communications on payment methods and the law and practice of banking will also be considered.
The far reaching developments in the law of contract, tort, trusts and restitution, which have important effects on modern banking, are relevant, and the course includes consideration of developments such as the Jack Committee Report, the standards set by the Banking Code of Business Sourcebook and the work of the Financial Services Ombudsman. We will also focus on aspects of consumer protection for customers (including effectiveness of the deposit protection scheme) and the current discussions about money laundering and methods of safeguarding banks and customers from fraud. These aspects of the course primarily concentrate on law and practice in the U.K., but are clearly relevant to law and practice in other countries.
11 seminars plus attendance at lectures
Summative - 3 hour exam (100%). Formative - Students should do one piece of formative assessment and may do two.
The Commercial Law Statute books contain most of the statutes. There is also the Butterworths Banking Law Handbook, but it is very expensive. Report of the Committee on Banking Services Law and Practice (The Jack Committee) 1989 Cm 622 (now only of historical interest) Financial Services Ombudsman website www.financial-ombudsman.org.uk
