LMA replies to ESMA consultation on CRA 3
We have submitted a response in relation to the ESMA consultation on CRA 3. The submission highlights the negative implications of the current requirements for the CLO industry, particularly the requirements of Article 8b. These relate primarily to scope, concerns regarding confidentiality and the disclosure of loan-level data and finally the need for caution when producing specific disclosure templates for CLOs.
LMA responds to UK Treasury consultation on Banking Reform Bill secondary legislation
We have responded to the UK Treasury consultation in relation to the Banking Reform Bill secondary legislation. The submission highlights the potential negative consequences which could arise as a result of ring-fencing certain banking activities.
UK Competition Commission publishes final decision on audit services
The UK Competition Commission has published its final report resulting from its investigation into statutory audit services for large companies in the UK. As part of its wide-ranging investigation, the Commission has found that provisions in loan agreements which restrict a company's choice of auditor to lists or categories should be prohibited, although parties may require that any auditor should meet "objectively justified criteria".
BBA issues consultation in relation to intraday re-fixing of LIBOR
The BBA has issued a consultation which considers whether, in the interests of strengthening the integrity of LIBOR, a policy of intraday re-fixing should be adopted. According to the consultation, LIBOR re-fixing "would entail the re-calculation of the value published at approximately 11.45 am in order to take account of any late submissions or calculation errors of the types listed above and the publication of the adjusted value as the re-fixed rate.
Reduction in the number of Euribor tenors
The European Banking Federation (EBF) has announced a reduction in the number of Euribor tenors which will be calculated and published, as of 1 November, 2013, on the basis that they are not frequently used in the financial markets, according to a consulted panel of banks. As of this date, it was agreed that the following tenors be discontinued: 3 weeks, 4, 5, 7, 8, 10 and 11 months. The remaining tenors (1 and 2 weeks, 1, 2, 3, 6, 9 and 12 months) will be unaffected.