Monthly Highlights: June 2016

Monthly Highlights: June 2016

Welcome to this month’s highlights from the Lexis®PSL Banking & Finance team which cover the key news updates from June 2016.


The full impact of the UK's decision to withdraw from the EU remains to be seen and the EU and UK domestic legal landscape will continue to change throughout the withdrawal process. LexisPSL is reviewing their content on the basis of information available and will keep it under regular review throughout the withdrawal period. In the meantime, our report Continental Shift: Brexit & the Law provides expert guidance on:

  1. the referendum essentials
  2. what Brexit could mean for different practice areas, and
  3. views on Brexit from around the world
  4. the mechanics of an exit


Changes for IFRS 16 incorporated in Loan Market Association (LMA) facility documentation

In January this year, the International Accounting Standards Board (IASB) released a new accounting Standard IFRS 16—Leases. IFRS 16 is a new accounting standard relating to the accounting treatment of leases. It takes effect from 1 January 2019. For more information, see the News Analysis: IFRS 16—a new lease of life?

The LMA has now incorporated drafting into each of its template facility agreements to address this development. The changes involve:

  • replacing the use of the term 'finance or capital lease' in the definition of 'Financial Indebtedness' with a description of the balance sheet treatment, and
  • including an optional exclusion from the definition of 'Financial Indebtedness' (and related definitions) of leases currently treated as operating leases under the old lease accounting standard (IAS 17), together with a drafting note highlighting the potential impact of IFRS 16 on EBITDA.

PDF versions of the facility agreements highlighting the changes are available to members of the LMA on the LMA website.

PSC register—impact on lenders

New rules on keeping a register of persons with significant control (PSC) came into force on 6 April 2016. In News Analysis: PSC register—impact on lenders, Joanna Belmonte, senior associate and professional support lawyer in the banking and finance team at Gateley Plc, considers its potential impact upon lenders. The piece looks in particular at:

  1. the impact the PSC register regime is likely to have on existing loan documentation
  2. the additional steps lenders and their advisers may have to take when carrying out due diligence prior to entering into any new loan transactions
  3. changes the PSC register regime is li

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About the author:

Neeta has been working as a paralegal in Banking and Insolvency for the past 4 and a half years.

She started her legal career at Allen & Overy in 2008 in the midst of the global financial crisis and the collapse of Lehmans where she gained most of her experience.

Neeta also did a short stint in litigation at the Revenue and Customs Prosecutions Office. Neeta graduated with a 2:1 honours degree from University of London, Queen Mary College and went on to obtain a distinction from the College of Law in the Legal Practice Course. She moved to Lexis®PSL in April 2013.