The Role of Law in Financial Stability

IMF to host high level seminar on law and financial stability

“Panama Papers” highlight the importance of international initiatives to increase transparency

Developing effective legal frameworks for financial regulation is critical

The conference, “Law and Financial Stability,” which will take place during May 16–18 at IMF Headquarters in Washington, D.C., will draw high-level legal experts and policymakers from over 80 member countries to discuss the progress made in strengthening financial regulatory systems since the global financial crisis. A high-level panel chaired by Governor Daniel Tarullo of the U.S. Federal Reserve will lay out a vision of the road ahead.

Speaking to IMF Survey, IMF General Counsel and Director of the Legal Department, Sean Hagan, and Deputy General Counsel, Ross Leckow, discussed the reform agenda and the importance of strong legal frameworks for the IMF and its members.

IMF Survey : The IMF is hosting this high-level seminar. Could you tell us why and why now?

Hagan: The purpose of the seminar is to illustrate the important role that the law plays in contributing to financial stability, at the international, regional, and national levels. Strengthening financial sector legal frameworks is an issue of critical importance for the Fund and its members. The Legal Department is actively involved in this work, and we therefore think it is appropriate to review the progress made since the global financial crisis. The seminar will also provide a timely opportunity to critically examine what remains to be done, as well as identify emerging legal issues.

The conference will draw high-level speakers and participants from over 80 countries, international organizations, academia, and private law practice.

I should note that the timing of the seminar coincides with a very important milestone for us—the 70th anniversary of our Legal Department. It is striking for us to see how the Legal Department’s work on financial sector issues has steadily grown over time, particularly since the financial crisis.

IMF Survey : Can you give us a sense of the topics that will be discussed during these two days?

Hagan: The seminar will cover a broad range of financial sector issues on which we work very closely with our members and other international organizations, as part of our mandate to promote macroeconomic and financial stability.

It will examine the progress made in strengthening resolution regimes for financial institutions...