Martijn Sinninghe Damste | European University for Economics & Management A.s.b.l. Luxembourg (original) (raw)

Papers by Martijn Sinninghe Damste

No matter whether we hire an army of compliance officer, write a million procedures, and have a z... more No matter whether we hire an army of compliance officer, write a million procedures, and have a zillion controls, breaches keep occurring. However, people are not inherently evil, most offenders are just regular people who want to do their job. What them causes them to act in a compliant or non-compliant manner? This paper will look at this question from an economical and game-theoretical angle at company level, a decision- and game-theoretical angle at individual level, and from a psychological and conflict management angle.

It turns out that there exist in all these angles several factors which can drive the compliant or non-compliant behaviour of employees. Adequate staffing, corporate governance, company and bonus culture, the presence or absence of risk management, conflict management, an effective enforcement system, and the legal and economic context are the key factors in driving employee (non-)compliance.

As culture and corporate governance are at the heart of regulatory compliance, one can similarly speak of inclusive and extractive companies (in parallel with Acemoglu and Robinsons inclusive and extractive institutions), where inclusive companies provide high quality output and run low regulatory risk, where for extractive companies the opposite holds.

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Can Median Voter Theorem be applied to risk management? Indeed it can! This paper uses the median... more Can Median Voter Theorem be applied to risk management? Indeed it can! This paper uses the median voting theorem on risk management, and the traps that the median voter theorem can pose to companies if the risk is not correctly managed.

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Ideally, the law acts like an algoritm producing a fair and just outcome. If this is not respecte... more Ideally, the law acts like an algoritm producing a fair and just outcome. If this is not respected, a party who feels disadvantaged can submit the case to court. The court will follow the rules of procedural law and apply material law on the case, and produce a fair outcome.

Unfortunately, being right is in many cases not the same as getting right, and procedures can be manipulated. Economic considerations are key in these manipulations. This paper seeks to find which are the economic factors behind litigation, and how can they be applied by parties in their favour.

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The securitization market is influenced by many factors. This paper examines the influence of eco... more The securitization market is influenced by many factors. This paper examines the influence of economic long waves (Kondratieff waves) on the securitization market and securitization issuances. By doing this, the paper allows a glimpse into the (far) future of securitzation.

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In a short time span of only 4 years, the Chinese securitization market has boomed from almost no... more In a short time span of only 4 years, the Chinese securitization market has boomed from almost nothing into the largest securitization market in Asia. This paper attempts to give a broad overview of the developments and aspects of the Chinese securitization market.

First, a global overview of the development of the Chinese securitization market is given, followed by an overview of all legal issues. This is followed by a comparison between China and a number of emerging and mature securitization markets. The following chapter attempts to share some light into the future. This is followed by a summary and conclusion.

Please note that this paper assumes basis knowledge on securitization on the side of the reader.

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This paper looks into the structure of the market, its main participants, their (economic) intera... more This paper looks into the structure of the market, its main participants, their (economic) interactions, and future developments.

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The American science-fiction writer Isaac Asimov (1919-1992) formed one of my main inspirations, ... more The American science-fiction writer Isaac Asimov (1919-1992) formed one of my main inspirations, with his introduction of the future-predicting scientific discipline of 'psychohistory'. This gave me the idea of doing the same for a country, in this case, the Philippines.

The Philippines are often mentioned as an emerging economy, but has nevertheless shown weak and inconsistent growth since independence. From one of the wealthiest countries in the region, it descended into becoming one of the poorest. The problem-solving question of this work is therefore: How can the Philippine economy develop from an underdeveloped into an emerging economy, taking into account internal developments and the hegemonic rivalry between the United States of America and the People's Republic of China?

The goal of the author is the creation of a 'Seldon Plan' for the Philippines following Asimov's hero Hari Seldon, and following the current cliodynamists.

The paper's body following the introduction is divided into three parts, each consisting of two chapters. Part 1 provides an overview of the economic and relevant non-economic features of the Philippines. Part 2 gives insight in internal dynamics within the Philippine economy. Part 3 focuses on the external influence of hegemonic rivalry between the U.S. and China on the Philippine economy. Finally, the paper closes with a conclusion.

The author recommends a number of improvements in order to make the Philippine political and economic institutions less extractive and more inclusive. Culture and social attitude towards certain behavior is herewith pivotal, and the author therefore pleads for a cultural change of mind. In addition, the analysis of external factors show that the current attitude towards China is counterproductive and that negotiations and a better relation yield optimal result. The author therefore recommends the Philippines to improve their relation with China whilst keeping their warm and outstanding relation with the U.S.

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This paper briefly goes through the principle of Islamic finance and the different products offer... more This paper briefly goes through the principle of Islamic finance and the different products offered. It can be used as an introduction to those inexperienced in the field of Islamic finance.

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Though many companies pay a great deal of attention to expatriate training, they treat distress a... more Though many companies pay a great deal of attention to expatriate training, they treat distress at repatriation in a relatively cavalier manner. The practise is however different. Over 70 percent of the repatriates experience significant problems regarding their re-entry. These problems can cause so much discomfort, that a significant percentage of the repatriates wishes to leave the firm.

This paper tries to link these factors of discomfort with the concept of flow, defined by Csikszentmihalyi. Flow, defined by Csikszentmihalyi, can be seen as complete absorption in what one does, and is strongly linked to challenge and job satisfaction.

The discomforts at repatriation, also often dubbed 're-entry shock', can in some cases in the professional sphere indeed disrupt one or more conditions for achieving flow, therewith preventing a repatriate from achieving flow. This paper goes into the various aspects of this and offers a number of suggestions to mitigate the flow-inhibiting aspects in order for repatriates to (re-)achieve Flow.

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The scope of this paper focuses on the comparison of director’s liability in securitization compa... more The scope of this paper focuses on the comparison of director’s liability in securitization companies between different countries.

This paper intends to look at the liability of directors in securitization companies in three jurisdictions: the Grand-Duchy of Luxembourg, the Federal Republic of Germany and the People’s Republic of China.

Although Luxembourg, Germany and China are different jurisdictions and have different securitization markets, their approach to director’s liability in general and SPVs in special is the same. In principle the company would be liable for its
obligations and not the director, as long as he complies to the standard set for him or her in each respective jurisdiction.

In many cases, directorship is fulfilled by a trust company or corporate services provider. Often trust companies do not see securitization companies as different from their mainstream work, which, in the view of the author would be a grave mistake which can cost dearly. A number of recommendations is proposed for trust companies who engage in the securitization business.

The comparison between Luxembourg, Germany and China shows that, despite the differences in legal systems, the result is the same. So should the behavior of a SPV director in any jurisdiction be: careful, diligent, loyal, acting as a prudent businessman for the best interest of the beneficiary or the stakeholders.

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The scope of paper is the description of the influence of changing AML/CFT rules, criteria and ri... more The scope of paper is the description of the influence of changing AML/CFT rules, criteria and risk profiles as changing environment on corporate strategic decision making. It goes briefly through the main principles of compliance, AML and CFT, followed by the decision making process these requirements impose on companies. After this, the influences of client behavior, political and legislative changes on this decision model are discussed. The paper ends with a conclusion.

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Books by Martijn Sinninghe Damste

Compliance and emergence. A holistic view of compliance, from the lowest to the highest level., 2024

Increased regulatory pressure has lead to the emergence of the Compliance function. On the other ... more Increased regulatory pressure has lead to the emergence of the Compliance function. On the other hand, Compliance is still misunderstood by many stakeholders.

This work attempts to give a holistic view of regulatory compliance and its role and place in the company and in the wider market. It consists of 4 parts: part 1 covers the history and the basics, part 2 covers the place of compliance in the company and its mechanics, part 3 covers the manner regulatory compliance works in practise and the reason why regulatory breaches still take place, and part 4 covers compliance response to changes and a look into the future.

The book ends with a set of conclusions and recommendations to companies, stakeholders and governments.

The target audience of this work is managers, compliance officers, lawyers, or employees who wish to understand the compliance function better.

Bookmarks Related papers MentionsView impact

No matter whether we hire an army of compliance officer, write a million procedures, and have a z... more No matter whether we hire an army of compliance officer, write a million procedures, and have a zillion controls, breaches keep occurring. However, people are not inherently evil, most offenders are just regular people who want to do their job. What them causes them to act in a compliant or non-compliant manner? This paper will look at this question from an economical and game-theoretical angle at company level, a decision- and game-theoretical angle at individual level, and from a psychological and conflict management angle.

It turns out that there exist in all these angles several factors which can drive the compliant or non-compliant behaviour of employees. Adequate staffing, corporate governance, company and bonus culture, the presence or absence of risk management, conflict management, an effective enforcement system, and the legal and economic context are the key factors in driving employee (non-)compliance.

As culture and corporate governance are at the heart of regulatory compliance, one can similarly speak of inclusive and extractive companies (in parallel with Acemoglu and Robinsons inclusive and extractive institutions), where inclusive companies provide high quality output and run low regulatory risk, where for extractive companies the opposite holds.

Bookmarks Related papers MentionsView impact

Can Median Voter Theorem be applied to risk management? Indeed it can! This paper uses the median... more Can Median Voter Theorem be applied to risk management? Indeed it can! This paper uses the median voting theorem on risk management, and the traps that the median voter theorem can pose to companies if the risk is not correctly managed.

Bookmarks Related papers MentionsView impact

Ideally, the law acts like an algoritm producing a fair and just outcome. If this is not respecte... more Ideally, the law acts like an algoritm producing a fair and just outcome. If this is not respected, a party who feels disadvantaged can submit the case to court. The court will follow the rules of procedural law and apply material law on the case, and produce a fair outcome.

Unfortunately, being right is in many cases not the same as getting right, and procedures can be manipulated. Economic considerations are key in these manipulations. This paper seeks to find which are the economic factors behind litigation, and how can they be applied by parties in their favour.

Bookmarks Related papers MentionsView impact

The securitization market is influenced by many factors. This paper examines the influence of eco... more The securitization market is influenced by many factors. This paper examines the influence of economic long waves (Kondratieff waves) on the securitization market and securitization issuances. By doing this, the paper allows a glimpse into the (far) future of securitzation.

Bookmarks Related papers MentionsView impact

In a short time span of only 4 years, the Chinese securitization market has boomed from almost no... more In a short time span of only 4 years, the Chinese securitization market has boomed from almost nothing into the largest securitization market in Asia. This paper attempts to give a broad overview of the developments and aspects of the Chinese securitization market.

First, a global overview of the development of the Chinese securitization market is given, followed by an overview of all legal issues. This is followed by a comparison between China and a number of emerging and mature securitization markets. The following chapter attempts to share some light into the future. This is followed by a summary and conclusion.

Please note that this paper assumes basis knowledge on securitization on the side of the reader.

Bookmarks Related papers MentionsView impact

This paper looks into the structure of the market, its main participants, their (economic) intera... more This paper looks into the structure of the market, its main participants, their (economic) interactions, and future developments.

Bookmarks Related papers MentionsView impact

The American science-fiction writer Isaac Asimov (1919-1992) formed one of my main inspirations, ... more The American science-fiction writer Isaac Asimov (1919-1992) formed one of my main inspirations, with his introduction of the future-predicting scientific discipline of 'psychohistory'. This gave me the idea of doing the same for a country, in this case, the Philippines.

The Philippines are often mentioned as an emerging economy, but has nevertheless shown weak and inconsistent growth since independence. From one of the wealthiest countries in the region, it descended into becoming one of the poorest. The problem-solving question of this work is therefore: How can the Philippine economy develop from an underdeveloped into an emerging economy, taking into account internal developments and the hegemonic rivalry between the United States of America and the People's Republic of China?

The goal of the author is the creation of a 'Seldon Plan' for the Philippines following Asimov's hero Hari Seldon, and following the current cliodynamists.

The paper's body following the introduction is divided into three parts, each consisting of two chapters. Part 1 provides an overview of the economic and relevant non-economic features of the Philippines. Part 2 gives insight in internal dynamics within the Philippine economy. Part 3 focuses on the external influence of hegemonic rivalry between the U.S. and China on the Philippine economy. Finally, the paper closes with a conclusion.

The author recommends a number of improvements in order to make the Philippine political and economic institutions less extractive and more inclusive. Culture and social attitude towards certain behavior is herewith pivotal, and the author therefore pleads for a cultural change of mind. In addition, the analysis of external factors show that the current attitude towards China is counterproductive and that negotiations and a better relation yield optimal result. The author therefore recommends the Philippines to improve their relation with China whilst keeping their warm and outstanding relation with the U.S.

Bookmarks Related papers MentionsView impact

This paper briefly goes through the principle of Islamic finance and the different products offer... more This paper briefly goes through the principle of Islamic finance and the different products offered. It can be used as an introduction to those inexperienced in the field of Islamic finance.

Bookmarks Related papers MentionsView impact

Though many companies pay a great deal of attention to expatriate training, they treat distress a... more Though many companies pay a great deal of attention to expatriate training, they treat distress at repatriation in a relatively cavalier manner. The practise is however different. Over 70 percent of the repatriates experience significant problems regarding their re-entry. These problems can cause so much discomfort, that a significant percentage of the repatriates wishes to leave the firm.

This paper tries to link these factors of discomfort with the concept of flow, defined by Csikszentmihalyi. Flow, defined by Csikszentmihalyi, can be seen as complete absorption in what one does, and is strongly linked to challenge and job satisfaction.

The discomforts at repatriation, also often dubbed 're-entry shock', can in some cases in the professional sphere indeed disrupt one or more conditions for achieving flow, therewith preventing a repatriate from achieving flow. This paper goes into the various aspects of this and offers a number of suggestions to mitigate the flow-inhibiting aspects in order for repatriates to (re-)achieve Flow.

Bookmarks Related papers MentionsView impact

The scope of this paper focuses on the comparison of director’s liability in securitization compa... more The scope of this paper focuses on the comparison of director’s liability in securitization companies between different countries.

This paper intends to look at the liability of directors in securitization companies in three jurisdictions: the Grand-Duchy of Luxembourg, the Federal Republic of Germany and the People’s Republic of China.

Although Luxembourg, Germany and China are different jurisdictions and have different securitization markets, their approach to director’s liability in general and SPVs in special is the same. In principle the company would be liable for its
obligations and not the director, as long as he complies to the standard set for him or her in each respective jurisdiction.

In many cases, directorship is fulfilled by a trust company or corporate services provider. Often trust companies do not see securitization companies as different from their mainstream work, which, in the view of the author would be a grave mistake which can cost dearly. A number of recommendations is proposed for trust companies who engage in the securitization business.

The comparison between Luxembourg, Germany and China shows that, despite the differences in legal systems, the result is the same. So should the behavior of a SPV director in any jurisdiction be: careful, diligent, loyal, acting as a prudent businessman for the best interest of the beneficiary or the stakeholders.

Bookmarks Related papers MentionsView impact

The scope of paper is the description of the influence of changing AML/CFT rules, criteria and ri... more The scope of paper is the description of the influence of changing AML/CFT rules, criteria and risk profiles as changing environment on corporate strategic decision making. It goes briefly through the main principles of compliance, AML and CFT, followed by the decision making process these requirements impose on companies. After this, the influences of client behavior, political and legislative changes on this decision model are discussed. The paper ends with a conclusion.

Bookmarks Related papers MentionsView impact

Compliance and emergence. A holistic view of compliance, from the lowest to the highest level., 2024

Increased regulatory pressure has lead to the emergence of the Compliance function. On the other ... more Increased regulatory pressure has lead to the emergence of the Compliance function. On the other hand, Compliance is still misunderstood by many stakeholders.

This work attempts to give a holistic view of regulatory compliance and its role and place in the company and in the wider market. It consists of 4 parts: part 1 covers the history and the basics, part 2 covers the place of compliance in the company and its mechanics, part 3 covers the manner regulatory compliance works in practise and the reason why regulatory breaches still take place, and part 4 covers compliance response to changes and a look into the future.

The book ends with a set of conclusions and recommendations to companies, stakeholders and governments.

The target audience of this work is managers, compliance officers, lawyers, or employees who wish to understand the compliance function better.

Bookmarks Related papers MentionsView impact