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.
We have published a paper which seeks to emphasise the number of regulatory issues which could arise in a lending context as a result of a "no deal" scenario, and the negative repercussions that this would create for the wider EU economy.
LMA produces supplementary note on documentary implications of Brexit for LMA facility documentation
Further to the note first produced by the LMA in September 2016 on the documentary implications of Brexit for LMA facility documentation (the "2016 Brexit Note"), the LMA has produced a supplementary note to inform members of market discussions/concerns in this area (the "Supplementary Note"). Members should note that the Supplementary Note does not replace the 2016 Brexit Note, but rather is intended to be read in conjunction with it.
UK Government releases "no-deal" planning paper on post-Brexit judicial co-operation in civil and commercial matters
As part of its “no-deal” planning papers, the UK Government has set out a very brief analysis of the consequences of such a Brexit for civil cases before the UK courts which clarifies a number of the UK Government’s intentions if “no-deal” happens. This briefing by Linklaters looks at these and what this means for the use of English law, the use of the English courts to hear disputes, and the consequences for ongoing and future cases before them.
The European Banking Authority (EBA) has followed up on its opinion published in June 2018 (the EBA June 2018 Opinion) on the preparedness of financial institutions for the UK's withdrawal from the EU. The EBA's latest press release reminds all affected financial institutions to provide their customers with, at the very least, the information specified in the EBA June 2018 Opinion.
Draft law allowing French Government to issue measures by ordinance in preparation for UK withdrawal from EU adopted by Assemblée Nationale
A draft law conferring additional powers on the French Government, including various measures relating to the banking and finance sector, has been adopted by the French Assemblée Nationale in preparation for the withdrawal of the UK from the EU.
The draft law is now set to be examined by the joint committee (Commission Mixte Paritaire), which is the last step prior to the law being enacted.
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.
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. 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.