The impact of regulatory and legal changes on facilities agreements
The impact of regulatory and legal changes on facilities agreements

The following Banking & Finance practice note provides comprehensive and up to date legal information covering:

  • The impact of regulatory and legal changes on facilities agreements
  • Brexit
  • Financial services regulation—useful resources
  • Prohibition on 'big four' auditors clauses—impact on facilities agreements
  • Audit regulations—background
  • Audit regulations—impact on facilities agreement
  • Audit regulations—effect of Brexit
  • Basel III, CRD IV and CRD V—impact on facilities agreements
  • Basel III and CRD IV/V—background
  • Capital requirements—effect of Brexit
  • More...

The impact of regulatory and legal changes on facilities agreements

This Practice Note discusses the key provisions of facilities agreements that are impacted by regulatory change, focusing on the following areas:

  1. Brexit

  2. prohibition on 'big four' auditors clauses

  3. impact of Basel III and Capital Requirements Directive IV (CRD IV) and CRD V

  4. reform of benchmarks

  5. US Foreign Account Tax Compliance Act 2010 (FATCA) and Common Reporting Standard (CRS) tax evasion measures

  6. contractual bail-in under Article 55 of the Bank Recovery and Resolution Directive 2014/59/EU (BRRD) and the US Qualified Financial Contracts (QFC) Stay Rules

  7. sanctions, bribery and corruption and money laundering

  8. prohibition on restrictive contractual clauses and other competition law issues

  9. defined benefit pensions schemes

  10. the National Security and Investment Bill

  11. regulation of sustainable finance

  12. guidelines on loan origination and monitoring, and

  13. DAC 6

This Practice Note assumes that the borrower is a UK corporate and the facilities agreement is governed by English law and based on a market standard such as the relevant Loan Market Association (LMA) recommended form of primary lending document.

This Practice Note focuses primarily on the impact of settled legislation or regulation. For information on proposals and regulatory and legal developments at an earlier stage, see Practice Note: Hot topics for Banking & Finance lawyers.

Brexit

The end of the implementation period may require some amendments to new and existing facility documentation. Practice

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