Financial Markets

2007-08 & All That…

After the 2007-08 financial crisis (aka ‘The Recession’!) the financial markets has become increasingly regulated. As a result, lawyers specialising in financial markets are now in demand as the financial sector gets to grips with its transformed world.

Why is it important? What does it involve?

Financial markets law is vast and covers asset finance, banking, capital markets, commodity and energy trading, financial services and market regulation, funds finance, Islamic finance, private funds, restructuring and insolvency, and retail structured products.

A financial markets lawyer will need to be clued up on all the complex factors of the finance world and should have a trained eye for detail as well as a penchant for mathematics. A top financial markets lawyer will look for new approaches to traditional products and will essentially act as a business adviser to their clients, so an ability to analyse and predict future market trends is an absolute must.

A financial markets lawyer must have an abundance of communication skills and an ability to convey complicated information in a straightforward manner.

Break it down for me a little bit!

Asset management involves liaising and advising with clients who have shares in a company, property investments, bonds and foreign exchange products. A lot of money is involved in asset management, so lawyers need to make sure their clients toe the line whilst making as much money as possible.

Other areas, such as capital markets, will see a lawyer act for financial institutions and corporates, advising them on the regulation changes (remember the post-recession legislation!) and understanding the clients’ position, having previous transactional experience and the ability to understand new regulation is a huge advantage. Commercial awareness, therefore, needs to be top-notch!

Speaking of regulation, financial services and market regulation would involve work for brokerage houses, investment exchanges, investment banks, commodity traders and other financial institutions. A financial markets lawyer would advise clients on the Financial Services and Markets Act 2000, strategic regulatory issues, investigations, disputes and disciplinary matters, derivatives and commodity trading and documentation.

Working in Islamic finance would involve advising Shariah-compliant financial institutions, fund managers, financial advisors and corporate.

Financial markets is a vast area of law and requires a thorough understanding of complex market data and client business needs and requirements.