Banking & Finance Update – Q3 2020

Banking & Finance Update – Q3 2020

 

As part of our sector-focused series, we have curated the key resources and points you need to know from the third quarter’s legal updates. Understand the key news stories, practice notes, timelines and upcoming webinars specific to the Banking & Finance sector.

 

Keeping up to date: September monthly highlights

We publish monthly news highlights on our blog. September’s highlights include news on Brexit, LIBOR and benchmarks, Lending news arising out of government interventions following COVID-19 (coronavirus), Restructuring and other topics. Read more ...

LMA briefing Q3 2020: contractual interpretation

In this briefing, the LexisPSL Banking & Finance team looks at three recent cases on contractual

interpretation. Each provides interesting insights into questions of construction which could arise in

a lending context. Read more ...

Loans in the time of COVID-19: how loan documentation has fared in this challenging environment

Butterworths Journal of International Banking and Financial Law: In this article, Peter Hayes, Philip Stopford and Helen Walsh at Shearman & Sterling LLP look at  how existing loan agreements have fared in the current situation as compared to the global financial crisis, the practical considerations behind key amendments currently being sought and what developments we may see in the future. Read more ...

Financial crime in a pandemic

Fraud, money laundering, hacking, cyber attacks and bribery are key parts of the modern tool kit for financial criminals. The volatility and uncertainty characteristic of economic crises, such as the current coronavirus crisis, provide fertile ground for these crimes. On a recent PRIMEtime Virtual Event, Gay Huey Evans OBE, P.R.I.M.E. Finance expert, chair of the London Metal Exchange in December 2019 and an independent non-executive director of Standard Chartered plc (where she is chair of the Board Committee on Financial Crime and serves as a member of the Board Risk Committee), identified financial crime as a significant risk which is heightened by the current crisis. Read highlights here  ...

The role of derivatives in sustainable finance

Mindy Hauman, professional support counsel at White & Case LLP and Banking & Finance Consulting Editorial Board member, discusses a new report published by the European Capital Markets Institute of the Centre for European Policy Studies, in cooperation with ISDA, on the role of derivatives in sustainable finance. The report highlights how derivatives can contribute to the EU Sustainable Finance Action Plan and play a significant role in the European Green Deal in helping to promote the EU’s transition towards a low-carbon economy. Read more ...

 

Covid-19 toolkit & blog

 

This Covid-19 toolkit has been created to provide in-house lawyers or legal advisers with easy access to news, practical guidance and Q&As from across a number of Lexis®PSL Practice Areas (subject to subscription) that relate to these key areas of concern.

In-house lawyers at financial institutions may find the following resources particularly helpful:

We also cover the implications for various finance transactions types in standalone Practice Notes, links to which can be found in the Coronavirus (COVID-19) and Banking & Finance—overview.

Not a subscriber to Lexis®PSL? See the free resources and information on our Covid-19 blog. For a free trial of our Lexis®PSL product, click here.

 

LIBOR focus – commercial & practical help

 

LIBOR remains a key focus for many in-house Banking & Finance lawyers. Our Practice Notes and tracker will help you to keep up to date with the development of alternative RFRs and plan for a smooth transition away from LIBOR.

LIBOR transition - provides information on the transition away from LIBOR and other IBORs towards using risk-free rates, including a detailed discussion on the specific issues for the loan market, derivatives market, and debt capital markets of adoption of risk-free rates. It also provides a glossary of key terms such as IBOR, SONIA, fallbacks and conventions.

LIBOR developments tracker - sets out developments relating to the transition away from LIBOR to risk-free rates. It covers developments relating to each of the LIBOR currencies: Sterling, US dollars, Swiss Francs, Japanese Yen and Euros, as well as developments relating to the transition from EONIA to €STR. It also contains section on regulatory updates, cross-currency updates, future developments and next steps to look out for.

Running a LIBOR transition project - provides a starting point to assist firms with planning and implementing a London Interbank Offered Rate transition project. It discusses key issues raised by UK regulators and includes a checklist setting out a number of key LIBOR impact areas that firms will need to investigate and address as well as points to consider when doing so.

 

Brexit focus - commercial & practical help

 

To help you cut through the noise, here are a few resources giving you the need-to-know information:

1. Brexit toolkit

Our Brexit toolkit draws together Brexit content for the practice areas that are relevant for you.

Brexit toolkit

2. Brexit - Statutory Instruments (SI) tracker

This tracker lists all Brexit-related financial services statutory instruments (SIs), together with explanatory memoranda and other information for each SI, as well as links to primary sources.

Brexit—Financial Services—Statutory Instruments (SI) tracker.

3. Brexit – impact on finance transactions

This Practice Note provides information relating to the impact of Brexit on finance transactions. It summarises the approach being taken in relation to financial services generally in the event of a deal and in the event of no deal, before explaining general Brexit related issues for finance transactions. It then sets out key issues for various specific types of financing, including project finance, real estate, aviation, debt capital markets and derivatives.

Brexit—impact on finance transactions.

4. Brexit – documentary implications for facility agreements

This Practice Note explains how Brexit  could affect facility agreements (loan agreements), including how governing law and jurisdiction clauses in facility agreements will be impacted by Brexit, the impact of Brexit on requirements to include contractual recognition of bail-in clauses (Article 55 of the Bank Recovery and Resolution Directive), the impact of loss of passporting rights on loan documentation, the impact of Brexit on tax clauses in a facilities agreement, the impact of Brexit on certain representations (such as the centre of main interests (COMI) representation) and certain other contractual implications.

Brexit—documentary implications for facility agreements

 

Keeping up to date

 

Key dates you need to know, publications and announcements relating to legal issues in Banking & Finance.

Click to view trackers and practice notes in the following topic areas:

Brexit timeline

Brexit legislation tracker

Banking & Finance case tracker

LIBOR developments tracker

Sustainable finance – recent news

Banking & Finance – key dates and future developments tracker: 2020 and beyond

Weekly highlights

Not a subscriber to Lexis®PSL?  For a free trial click here.

 

Useful resources

Banking & Finance – new starter guide

New Banking & Finance content

Banking & Finance Q&As – overview

Banking & Finance forms and precedents

Banking & Finance cross border resources (Europe, Americas, Asia-Pacific and Africa)

Banking & Finance resources in Lexis®Library

Lexis®PSL Banking & Finance blog

Banking & Finance—Meet the Experts

 

Industry body trackers

LMA – latest news on documentation

ISDA – latest news on documentation

ICMA – latest news on documentation

 

Content specific to in-house lawyers

In Banking & Finance, we have a dedicated topic for in-house banking & finance lawyers, helping you to navigate the intricacies of working in-house.  Useful resources include:

 

Checklists

Busy in-house lawyers often want to use checklists to ensure that they have ticked off what they need to do on their legal matters.  In Banking & Finance, we recognise that in-house lawyers juggling multiple matters often benefit from checklists to ensure that the important points have been covered off.  To that end, in LexisPSL we have checklists covering an array of issues, including, for example:

Amending a facility agreement – checklist

Drafting a confidentiality agreement (disclosing party) – checklist

Reviewing a confidentiality agreement (reviewing party) – checklist

Brexit checklist –finance documents

Checklist for reviewing a foreign law opinion

Intercreditor checklist – senior lenders

Intercreditor checklist – junior lenders

Prospectus Regulation – debt capital markets checklist

Agreeing engagement terms with external law firms – a checklist for in-house banking & finance lawyers

 

P.R.I.M.E. Finance collaboration

We are proud in LexisPSL to support and work with P.R.I.M.E. Finance, whose mission is to ensure that the best expertise is available for the settlement of complex market disputes.  The COVID-19 pandemic  is becoming a financial crisis, and one which is likely to have enormous repercussions.  We are supporting P.R.I.M.E. Finance with its virtual conference programme. Upcoming events include:

  • Insolvency and Business Rescue in a Pandemic – 14 October 2020

  • Alternative Dispute Resolution in a Pandemic – 27 October 2020

  • Sustainability in a pandemic – 12 November 2020

Please sign up for these free events here.

The following past P.R.I.M.E. Finance events are available for viewing for LexisPSL Banking & Finance subscribers here. Topics covered are:

  • Dispute resolution in a pandemic
  • Financial regulation in a pandemic (including lessons learned from the regulatory response to the 2008 financial crisis and regulatory intervention which may be expected in response to COVID-19)
  • Markets in a pandemic (including topics such as market disruption, valuation and liquidity and trading relationships)
  • Legislation in a pandemic (covering the Corporate Governance and Insolvency Act 2020)

 

Webinars

 

You can also sign up to upcoming and on demand webinars in the LexisPSL library. Recent topics include:

  • Green finance update
  • LIBOR transactions
  • Restructuring in a pandemic

Sign-up to upcoming and view on demand:

Banking and Financial Services

 

Get connected…

 

LexTalk®Banking & Finance: a Lexis®PSL community
Collaborate and network with a community of expert lawyers

LexTalk® is a new online community forum which gives Lexis®PSL subscribers the opportunity to post questions, hold conversations, participate in discussions and share best practice. It has been designed to provide a secure place for legal professionals to discuss legal developments, offer and receive peer support, and gain a sense of up to date market practice and advances in real-time. You can access and post questions on all of the dedicated practice area forums, including a dedicated community for Lexis®PSL Banking & Finance.

Click here to sign up and meet like-minded community members, create a profile, connect, share, and start participating today! Alternatively, you can access LexTalk® on the key resources tab on the Banking & Finance home page.

 

 

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About the author:
Malti is a solicitor specialising in financial restructuring and insolvency. Malti trained at Baker & McKenzie and qualified into the restructuring, recovery and bankruptcy group there. She then worked at Taylor Wessing as a senior associate in the restructuring and corporate recovery group for a number of years, specializing in both domestic and cross-border transactions, as well as other non-contentious and advisory matters. She also experienced secondments at RBS and Zolfo Cooper (now Alix Partners).