Banking & Finance: How should you enable technology to mitigate risk?

Banking & Finance: How should you enable technology to mitigate risk?

 

The COVID-19 crisis is likely to accelerate use of technologies, due to a mixture of there being a renewed focus on cost, as well as the extended period of home working. 

In our latest video, Emma Millington, Head of LexisPSL Finance Group at LexisNexis, discusses the most important recent changes that impact the financial sector.

 

 

Learn how LexisNexis PSL can help you deal with these changes. 

Brexit

Brexit continues to present significant challenges for regulatory lawyers.  They need to understand how EU financial services legislation is onshored in the UK and keep track of how the EU and UK regimes diverge after the end of the implementation period.

Financial institutions must also rise to the challenge of open banking and embrace new financial and regulatory technologies in the face of disruptive innovation.

Brexit—Financial Services—Statutory Instruments (SI) Tracker

The impact of COVID-19

With the COVID-19 crisis, legal teams in the finance sector are having to understanding the changing government schemes and work out how they can be implemented within organisations. 

In the longer-term, as the number of companies in distress increases and live transactions decrease, financial services in-house counsel may need to brush up on, or learn, about corporate restructuring. 

Emma’s top tip is to complete a document review when a credit becomes distressed. The checklists in LexisPSL can be particularly helpful in ensuring nothing is missed when conducting document reviews at scale.

Banking and Finance COVID-19 Toolkit

COVID-19 summary of government support

Glossary of restructuring terms and jargon

LIBOR

LIBOR continues to be a key area of focus as legal teams have to plan for a smooth transition to risk-free rates.  While transition is well progressed in the derivatives and DCM markets, the loan market still has issues to resolve before any large-scale adoption of risk-free rates can occur. Keep in mind the restrictive time scale on this transition. Timing was tight before the COVID-19 crisis and the regulators have made it clear there will be no extension to the 2021 deadline.

To adhere to these tight deadlines, lawyers should consider investing time to understand their portfolios, including identifying the amendment provisions and consent thresholds for those loans maturing after 2021. Creating a standard checklist of points to look will speed up the process.

LIBOR Developments Tracker

Practice Note: LIBOR transition

Overview: Amendments, waivers and consents

Accelerated use of technologies and AI

Given the scale of many LIBOR transition projects, and the speed at which they will need to be executed, legal teams may find that new AI technologies can assist with identifying affected contracts and producing first drafts of new documentation.

Understanding the part technology will play to facilitate these deals or projects is important. Both in how to adopt new technologies and understand how technology fits in with black letter law.  In house lawyers increasingly need to quantify the risks posed by resulting legal uncertainties. 

Introducing LexisPSL for Finance Counsel

Our trackers, news analysis and curated daily and weekly alerts help keep you up to speed with developments. We understand the risks and opportunities posed by technology and address these and other tricky questions. Checklists and succinct Practice Notes provide quick and practical help when advising on unfamiliar areas. 

 

Fill in the form below to take a free trial.
 

Related Articles:
Latest Articles:
About the author:

Louisa leads marketing for the in-house legal community at LexisNexis. She joined the dedicated in-house team at LexisNexis four years ago and has a passion for driving and facilitating initiatives which are customer-focused at their heart. Her vision is to support in-house counsel succeed in their fast-evolving role based on deep insight, data analysis and best practice gathered across the in-house community.

Prior to her in-house focused role, Louisa led the marketing for the bar and mid-market private practice sectors as well as product marketing lead for LexisPSL - LexisNexis' cloud based, practical guidance and legal research software solution.

She brings 20 years' marketing experience both client and agency side, specialising in B2B marketing in the Legal, TMT (Telco, Media and Technology) and Financial Services industries. In both South Africa, Europe and the UK.

Louisa is also an active member on the LexisNexis Gender Equality Matters (GEM) steering committee and is involved with the Families at LexisNexis Group which brings together, supports and lobbies for change those with an interest in balancing the challenges of work and family.