Monthly Highlights: October 2017

Monthly Highlights: October 2017

Welcome to this month’s highlights from the Lexis®PSL Banking & Finance team which cover the key news updates from October 2017.

Brexit

LMA urges the need for transitional arrangements for loan market after Brexit

The Loan Market Association (LMA) has highlighted the need for, and importance of, transitional arrangements for the loan market following the UK leaving the EU. The LMA’s comments were in response to the House of Lords European Union Select Committee’s ‘Brexit: deal or no deal’ inquiry.

The LMA says that Brexit will have a major impact on some lending and loan market activities conducted by banks in and through the UK, unless mitigating measures are agreed. It therefore believes a transitional period following exit from the EU is necessary.

The LMA sets out two ‘significant groups of issues’ in considering the need for, and the importance of, transitional arrangements:

  1. those relating to licensing, and the ability to do cross-border business, in respect of both existing business (ie agreements in place at the time of the EU exit) and future business
  2. the loans themselves, and ensuring their continuing validity and effectiveness

According to the LMA, transitional arrangements are required to avoid the damaging effects of a sudden withdrawal of passporting rights which could affect both the enforceability of existing loan agreements and the ability and willingness by UK-based lenders to enter into future agreements.

Members can access the response on the LMA website.

EBA issues opinion on Brexit relocation of authorities and institutions​

The European Banking Authority (EBA) has published an opinion on Brexit to ensure the consistent application of EU legislation to businesses seeking to establish or enhance their EU27 presence in order to retain access to the EU single market. In the opinion, the EBA addresses a number of relevant policy topics relating to authorisations, the

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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.