The Risk of Reverse Convertible Bonds: German Capital Market Law and Investor Protection

2002 ◽  
Vol 3 (12) ◽  
Author(s):  
Sung-Kee Kim ◽  
Peer Zumbansen
Keyword(s):  
Capital Market ◽  
National Policy ◽  
Federal Court ◽  
Convertible Bonds ◽  
Financial Instruments ◽  
Investment Funds ◽  
Legal Rules ◽  
German Capital ◽  
Federal Court Of Justice ◽  
Investment And Financing

In times of a continuously expanding proliferation of investment and financing possibilities in the hands of banks, investment funds and individual capital investors, particular attention should be paid to the effects that new financial instruments are likely to have not only on concrete financing and investing modes but also on the further development of legal rules in this field. As the German capital market has been considered unable - at least until the widely marketed Deutsche Telekom IPO - to get rid of its persisting prejudice of being structurally lagging behind other countries’ systems, the legal treatment of emerging financial instruments deserves greatest attention. The rocket science of new financial instruments challenges law's aim to rightly assess the real quality of these instruments and to strike an adequate balance between the interests involved against a national policy background and EU demands. While the past few years have been a time of great legislative activity in the field of company and capital market law in Germany, only a closer look at court decisions reveals the true pressure resulting from a fast moving capital market on traditional legal perceptions. The so-called Aktienanleihe-Decision by the Federal Court of Justice, [FCJ] (Bundesgerichtshof - BGH) of 12 March 2002 marks an important step in the ongoing process of Germany's developing capital market law.

scholarly journals Managerial Optimism and the Cost of Capital. The SEM-Approach with a Focus on the German Capital Market

2016 ◽  
Vol 2016 (86(142)) ◽  
pp. 119-134
Author(s):  
Jan-Hendrik Meier ◽  
Walid Esmatyar
Keyword(s):  
Capital Market ◽  
Structural Equation ◽  
Cost Of Capital ◽  
Equation Modeling ◽  
Financing Decisions ◽  
Equity Risk ◽  
German Capital ◽  
Investment And Financing ◽  
Managerial Optimism ◽  
The Cost

The present study contributes the first analysis of the influence of managerial optimism on companies’financing policy and cost of capital. Since overconfidence biases investment and financing decisions, it may directly and indirectly influence a company’s risks and value. In contrast to prior research, which has almost exclusively been focused on the analysis of leverage, the present paper also takes risk measuresinto account to decompose the cost of capital and to identify direct and indirect effects of managerial optimism by using structural equation modeling (SEM). Based on a large sample of companies listed in Germany, this study found strong evidence that optimistic managers caused a higher equity risk and a higher risk of insolvency. However, this effect was not caused by the choice of leverage, and, thus, it must have been caused by investment-policy decisions. However, an optimistic management achieves a significant reduction in the overall cost of capital.

Die Treuhand als Rechtsform für Sondervermögen

2020 ◽  
Author(s):  
Dachuang Chen
Keyword(s):  
Federal Court ◽  
Point Of View ◽  
Legal Form ◽  
Legal Rules ◽  
Starting Point ◽  
Federal Court Of Justice ◽  
Uk Supreme Court ◽  
The Uk ◽  
Trust Law

The trust account is one of the most commonly used legal tools in business and is the subject of numerous legal disputes. Due to the absence of a trust code, there are no uniform legal rules for the requirements of the trust account. Moreover, the protection of the trust accounts from creditors of the trustee and the settlor in compulsory enforcement and bankruptcy is unregulated. This thesis attempts to close the gap. First, the topic will be outlined on the basis of two rulings of the UK Supreme Court and the German Federal Court of Justice (BGH). Subsequently the rules set out in the German case law will be systematically analysed. The asset partitioning approach will then be chosen as the dogmatic starting point for the justification of the protective effect of the trust account. The trust will accordingly be qualified as a legal form for special patrimony, and the theory of special patrimony will be examined in depth. The crucial role of subjective and objective ringfencing in order to effect a partitioning of assets will be highlighted, and the rules in the jurisprudence critically evaluated from this point of view. The last chapter is a comparative presentation of Chinese trust law.

The Implementation of the MiFID into the WpHG

2008 ◽  
Vol 9 (9) ◽  
pp. 1177-1188
Author(s):  
Sebastian Barry ◽  
Hannes Bracht
Keyword(s):  
European Commission ◽  
Capital Market ◽  
Financial Services ◽  
Action Plan ◽  
German Law ◽  
The Other ◽  
Financial Instruments ◽  
German Capital ◽  
Commission Regulation ◽  
The One

On 1 November 2007 the Finanzmarktrichtlinie-Umsetzungsgesetz (FRUG) came into effect. The FRUG is supplemented by two directives, the Wertpapierdienstleistungs-Verhaltens- und Organisationsverordnung (WpDVerOV) (as amended by the Erste Verordnung zur Änderung der Wertpapierdienstleistungs-Verhaltens- und Organisationsverordnung) and the Erste Änderungsverordnung zur Finanzanalyseverordnung. Together with the aforementioned directives the FRUG implements the Markets in Financial Instruments Directive (MiFID) into German law, which is itself supplemented by a MiFID Implementing Directive and a Commission Regulation. Altogether this legislation is part of the Financial Services Action Plan of the European Commission aiming at the formation of a single market for financial services. The new legislation leads to material changes in the Wertpapierhandelsgesetz (WpHG). On the one hand numerous new regulations have been added, on the other hand already existing regulations have become much more detailed. Thus the WpHG has finally become “the constitution” of German capital market law.

Institutional Investors on the Securities Market

2003 ◽  
pp. 95-101
Author(s):  
O. Khmyz
Keyword(s):  
Financial Crisis ◽  
Capital Market ◽  
Hedge Funds ◽  
Institutional Investors ◽  
Securities Market ◽  
Main Role ◽  
Investment Funds ◽  
Investment Process ◽  
The Capital Market

Acording to the author's opinion, institutional investors (from many participants of the capital market) play the main role, especially investment funds. They supply to small-sized investors special investment services, which allow them to participate in the investment process. However excessive institutialization and increasing number of hedge-funds may lead to financial crisis.

Cross-border Distribution of Collective Investment Products in the EU

2018 ◽  
Author(s):  
Matteo Gargantini ◽  
Carmine Di Noia ◽  
Georgios Dimitropoulos
Keyword(s):  
Home Country ◽  
Legal Framework ◽  
Business Rules ◽  
Investment Funds ◽  
Legal Rules ◽  
Section 8 ◽  
Cross Border ◽  
Product Regulation ◽  
Supervisory Practices ◽  
The Eu

This chapter analyzes the current regulatory framework for cross-border distribution of investment funds and submits some proposals to improve it. The chapter is organized as follows. Section 2 provides a schematic description of the legal taxonomy for collective investment schemes. Section 3 addresses the EU disclosure regimes that apply to the distribution of various types of investment funds. Sections 4 and 5 consider conduct-of-business rules and, respectively, the legal framework for the allocation of supervisory powers on product regulation when fund units are distributed in more than one country. Section 6 provides some data that help assess the performance of the current framework for cross-border distribution. It then analyzes some of the residual legal rules and supervisory practices that still make cross-border distributions of funds more burdensome than purely national distributions, whether these restrictions are set forth in the country where investors are domiciled (Section 7) or in the fund's home country (Section 8).

Excessive Data Collection as a Form of Anticompetitive Conduct: The German Facebook Case

2021 ◽  
pp. 0003603X2199702
Author(s):  
Anne C. Witt
Keyword(s):  
Data Collection ◽  
Competition Law ◽  
Federal Court ◽  
Digital Platforms ◽  
High Profile ◽  
Court Of Justice ◽  
Federal Court Of Justice ◽  
Constitutional Right ◽  
Abuse Of Dominance

In a high-profile decision of February 6, 2019, the German Federal Cartel Office prohibited Facebook’s data collection policy as an abuse of dominance for infringing its users’ constitutional right to privacy. The case triggered a remarkable interinstitutional dispute between the key players in German competition law. Conflicting rulings by the Düsseldorf Higher Regional Court and the German Federal Court of Justice further illustrate how deeply divided the antitrust community is on the role of competition law in regulating excessive data collection and other novel types of harm caused by dominant digital platforms. This contribution discusses the original prohibition decision, the ensuing court orders, and legislative reform proposals in the broader context of European Union and U.S. competition law.

Insufficient Knowledge in Kunduz: The Precautionary Principle and International Humanitarian Law

2020 ◽  
Vol 25 (1) ◽  
pp. 53-79
Author(s):  
Emma J Marchant
Keyword(s):  
Precautionary Principle ◽  
Armed Conflict ◽  
Federal Court ◽  
International Humanitarian Law ◽  
Humanitarian Law ◽  
The Precautionary Principle ◽  
Lack Of Information ◽  
Operational Application ◽  
Federal Court Of Justice ◽  
Insufficient Knowledge

Abstract The targeting protocols applied by forces during armed conflict are some of the most secretive documents held by any military. However, their role in applying principles of international humanitarian law (IHL) means that they are key to understanding their development. This piece is primarily concerned with practical and operational application of the precautionary principle under IHL; how much knowledge is sufficient to carry out an attack lawfully during modern armed conflict. In order to establish if a standard has developed with the increase in intelligence, surveillance and reconnaissance technology, this piece uses the framework of an investigation into an incident in Kunduz, Afghanistan in 2009. I explore the difficulties of obtaining information post-incident, the differential standards expected by North Atlantic Treaty Organization (NATO) and the Bundesgerichtshof (German Federal Court of Justice), and the manner in which these can be evaluated through the principles of proportionality, distinction and precautions in attack. The piece looks at the interrelated issues raised by the Rules of Engagement and Tactical Directives, as well as the problems surrounding the clarity of intelligence available. I argue that this case is demonstrative of the failings inherent in the application and practical use of the precautionary principle outlined by IHL. The lack of transparency afforded in, and after, incidents of this nature prevents objective analysis and so the development of IHL can be obfuscated. I conclude that the lack of information following incidents of this kind confuses any intelligence standard that exists under IHL.

scholarly journals The present significance of commodity exchange trading in the conditions of the current world economy 

2012 ◽  
Vol 52 (No. 11) ◽  
pp. 497-502
Author(s):  
O. Rejnuš
Keyword(s):  
Capital Market ◽  
World Economy ◽  
Commodity Markets ◽  
Financial Resources ◽  
Real Economy ◽  
Financial Instruments ◽  
Commodity Exchange ◽  
Financial Investment ◽  
To Come ◽  
Near Future

The paper discusses the importance of commodity exchange trading while placing a special emphasis on the increasingly close interconnection between commodity markets and financial instruments markets. The aim of the paper is to prove that at present, commodity markets cannot be seen as strictly separate from markets trading in financial instruments, as there are increasingly close links between the two, which effectively lead to the transfer of financial resources invested in the financial market into the real economy. The paper analyses the most significant ties that already exist between the commodities and financial investment instruments in the financial and capital market, as well as the links that are very likely to come into existence in the near future. In the concluding part, there is a summary of the reasons that will necessarily lead to a further world-wide development of commodity exchange trading and a prediction of the lines along which this development is likely to take place.

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