Markkinoiden juridinen toimintaympäristö Luento 1 Johdanto Case 1 Matti Rudanko

The Views of the Regulator of the Markets – AND THOSE OF BUSINESS … The views are taken from regulative provisions, from international, European and national legislation, which are effectively harmonized… … but it is our task to find also here the business perspective so that regulatory provisions and other legal models are converted into business tools to create added value… … e.g. by creative use in market strategy planning, contracting and contract management, corporate finance etc. Markkinoiden juridinen toimintaympäristö Luento 1

… and the Special Mission of Our Approach … … is to see the keen interaction between various views represented by different areas of market regulation … … and the – even keener – interaction of these views with other market mechanisms, being of business economics, social, cultural of other nature … …and so to make an attempt of forming a comprehensive picture of the market environment. Markkinoiden juridinen toimintaympäristö Luento 1

The “four freedoms” of the Single Market The cornerstones of the single market are often said to be the “four freedoms” – the free movement of people, goods, services and capital. One of the “four freedoms” of the Single Market is the free movement of goods. Member States may restrict the free movement of goods only in exceptional cases, for example when there is a risk resulting from issues such as public health, environment, or consumer protection. http://ec.europa.eu/internal_market/top_layer/goods/index_en.htm Markkinoiden juridinen toimintaympäristö Luento 1

Financial Services Markkinoiden juridinen toimintaympäristö Luento 1 “Financial Services policy should deliver stable, secure and efficient financial markets and ensure coherence and consistency between the different policy areas, such as banking, insurance, securities and investment funds, financial markets infrastructure, retail financial services and payment systems.” (http://ec.europa.eu/internal_market/finances/index_en.htm ) Markkinoiden juridinen toimintaympäristö Luento 1

Views on the Markets Economics: markets in the context of political economy Methods of economics and business economics Finance and Accounting: pricing of derivatives, investor behavior, market efficiency, financial instruments, IFRS etc. Communication sciences (e.g. representations of finance in media), sociology etc. Classical question: why regulate the markets? Karl Marx – Adam Smith (the visible / unvisible hand) – the modern competition law The special characteristics and role of financial markets may increase the need of regulation (Here:) the (combined) legal view: function of regulation in market context Markkinoiden juridinen toimintaympäristö Luento 1

Main Views and Objects of Regulation of International Markets Market regulation Competition law (EU, national) Monopolies, cartels, merger control Digital markets Data security Data protection Regulation of the international trade environment WTO and other trade organizations (international conventions) Contract law (national, EU, international) CISG, Unidroit Contractual relationship: conclusion of contract, contractual liabilities Regulation of financial markets (national, EU) Trading in securities Disclosure duties, investment services, tender offers, insider trading, market manipulation etc. Markkinoiden juridinen toimintaympäristö Luento 1

Overview of Course Topics (Slide Sets) The Legal Environment of International Markets Slide Set 1 General Doctrine of Contract Law Formation of Contracts Offer and Acceptance Model Non-conforming Reply to Offer Slide Set 2 Sale of Goods: National and International Legal Provisions Definition of Conforming Goods Legal Remedies for Defective Goods Slide Set 3 Markkinoiden juridinen toimintaympäristö Luento 1

Overview of Course Topics, cont. Letter of Credit Slide Set 3a Choice of Law (International Private Law) Choice of Court Other Dispute Settlement Systems Slide Set 4 Markkinoiden juridinen toimintaympäristö Luento 1

Overview of Course Topics, cont. International and British Contract Law Entire Agreement ICC Model Contract Slide Set 5 Corporate Social Responsibility on International Markets Law and Ethics of Business Slide Sets 6 and 6 b-d Company Law Economic Optimization of Contract Corporate Governance and Risk Management Slide Sets 7 and 7a-b Markkinoiden juridinen toimintaympäristö Luento 1

Overview of Course Topics, cont. Economic optimization of contract – law and economics Slide Set 8 Insider provisions and market abuse Slide Set 9 Disclosure Duties, Insider Information and Business Secrets Slide Set 10 Finnish Insider Cases: KKO 2009:1 and 2006:110 Slide Sets 11 and 12 Markkinoiden juridinen toimintaympäristö Luento 1

Overview of Course Topics, cont. Legal Liabilities on Securities Markets Slide Sets13 and 14 Competition Law, merger control and IPR; lecture of Petri Kuoppamäki Slide Sets 15 and 16 Impact (on Mergers and Acquisitions) of Financial Markets Law and Especially Tender Offer (Public Bid) Regulation Slide Set 17 Markkinoiden juridinen toimintaympäristö Luento 1

Slide Set 18 Slide Set 19 Slide Set 20 Data protection and data security (Lecture by Mikko Viemerö) Slide Set 18 Self regulation, law and morals (Lecture by Maarit Laihonen) Slide Set 19 Access to Justice Quick loans Interplay of contract law, procedural law and criminal law Slide Set 20 Markkinoiden juridinen toimintaympäristö Luento 1

Introduction to the Course Our Approach Regulative Views on the Markets Overview of the Lectures What Else or Your Comments? Markkinoiden juridinen toimintaympäristö Luento 1

Search of Regulation Material Links to Finnish legislation translations : http://www.finlex.fi/en/laki/kaannokset/haku/?search%5Btype%5D=pika&search%5Bpika%5D=Act+on+Investment+Firms&submit=Search Kauppalaki: https://www.edilex.fi/lainsaadanto/19870355 The Finnish Sale of Goods Act: http://www.finlex.fi/en/laki/kaannokset/1987/en19870355.pdf Oikeustoimilaki: https://www.edilex.fi/lainsaadanto/19290228 The Finnish Contracts Act: http://www.finlex.fi/fi/laki/kaannokset/1929/en19290228.pdf CISG: http://www.cisg.law.pace.edu/cisg/text/treaty.html Unidroit Principles: http://www.unidroit.org/english/principles/contracts/principles2010/integralversionprinciples2010-e.pdf Links to EU legislation: http://eur-lex.europa.eu/collection/eu-law/legislation/recent.html (by indicated search keys, e.g. document number) Kansainvälliset sopimukset luento 1

Harmonisation of European Contract Law Principles of European Contract Law, Part 2 (Ole Lando,Hugh Beale) http://ec.europa.eu/justice/news/consulting_public/rome_i/contributions/private_law_university_amsterdam_en.pdf http://www.hiil.org/project/harmonising-private-law-in-europe-a-mission-impossible Ehdotettu asetus yhteisestä eurooppalaisesta kauppalaista (Common European Sales Law; KOM(2011) 635 lopullinen): http://eur-lex.europa.eu/legal-content/EN/TXT/?uri=CELEX:52011PC0635 Kansainvälliset sopimukset luento 1

Search of Regulation Material, Financial Markets Links to search of material issued by (Finnish) Financial Supervison Authority, Nasdaq OMX (Helsinki Stock Exchange): see homepage of the course (https://noppa.aalto.fi/noppa/kurssi/32e11100/course_material ) Links to Finnish legislation translations : http://www.finlex.fi/en/laki/kaannokset/haku/?search%5Btype%5D=pika&search%5Bpika%5D=Act+on+Investment+Firms&submit=Search Markkinoiden juridinen toimintaympäristö Luento 1

Search of Regulation Material, Especially on Insider Dealing (EU) of 28 January 2003 on insider dealing and market manipulation (market abuse); MAD DIRECTIVE 2003/6/EC OF THE EUROPEAN PARLIAMENT AND OF THE COUNCIL of 22 December 2003 implementing Directive 2003/6/EC of the European Parliament and of the Council as regards the definition and public disclosure of inside information and the definition of market manipulation COMMISSION DIRECTIVE 2003/124/EC Markkinoiden juridinen toimintaympäristö Luento 1

Regulation Material, Especially on Insider Dealing (Domestic) SMA ch. 12 - 14 The Penal Code, ch. 51, sect. 1 - 5 NASDAQ OMX Guidelines for Insiders FSA Standard 5.3: Declarations of insider holdings and insider registers Markkinoiden juridinen toimintaympäristö Luento 1

Regulation Material, Especially on Insider Dealing (Domestic) Securities Markets Act (14.12.2012 / 746; http://www.finlex.fi/fi/laki/kaannokset/2012/en20120746.pdf ) Ch. 12 – 14 on market abuse and insider registers Ch. 3 – 5 on disclosure duties Marketing and issuance of securities, duty of disclosure (SMA ch. 1 sect. 2 – 4) Markkinoiden juridinen toimintaympäristö Luento 1