While the UK referendum vote to leave the EU will have a major impact on the future financial landscape in the UK and Europe, in the vast majority of cases it does not bring about any immediate legal or contractual change. It is too early to speculate on the implications for the syndicated loan market of the UK's withdrawal from the EU and much will depend on the form of negotiated exit.
The LMA will be closely following developments in this regard and will work to address any issues which could impact the loan market. The LMA will continue to work closely with and on behalf of its members across EMEA and beyond on issues which create the potential for the loan market to be adversely affected.
This briefing from Clifford Chance considers the need for financial services firms to conduct detailed planning to overcome issues relating to contractual continuity, such as the potential loss of UK-EU financial services passporting rights, after Brexit. This task requires firms to weigh contractual continuity risks against the commercial and logistical challenges which may arise when transferring contracts to locally-licensed entities.
Available to watch on demand on the LMA website is a 30 minute webinar on the impact of the UK's vote to leave the European Union. Presenting the webinar are Matthew Dunn and Simon Gleeson, Partners at Clifford Chance LLP.
This briefing by Cadwalader looks at the impact of the UK vote to leave the EU on the European CLO market. The briefing concludes that there are solutions available to CLO market participants to plan for, and address, issues as they present themselves.
The LMA is pleased to announce the publication of a recommended form of designated entity clause for use in the LMA's senior facilities agreement for leveraged acquisition finance transactions (senior / mezzanine) and the LMA's recommended form of investment grade primary documentation.
The European Commission's draft withdrawal agreement and post-Brexit UK/EU27 judicial cooperation in civil and commercial matters
This briefing from Linklaters considers the proposals contained in the European Commission's draft withdrawal agreement on applicable law, jurisdiction and recognition of judgments. The proposals are indicative only and are still subject to negotiation. As a result, parties to agreements making decisions on these areas need to remain driven by a more rounded consideration of the circumstances in play in any given situation rather than placing reliance on any particular outcomes.
The LMA has responded to the House of Lords inquiry 'Brexit: deal or no deal'. The LMA's response sets out the need for, and importance of, transitional arrangements for the loan market following the EU exit of the UK.
LMA note on documentary implications of Brexit for LMA facility documentation
While the UK referendum vote to leave the EU will have an impact on the future financial landscape in the UK and Europe, in the vast majority of cases it does not bring about any need for immediate legal or contractual change. The LMA is closely following developments and will, in due course, address any documentary changes. In the meantime, however, we have produced a note addressing a number of Brexit-related considerations for LMA facility documentation. Click here to view the note.