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.
UK and EU 27 reach consensus on withdrawal agreement text concerning post-Brexit judicial cooperation in civil and commercial matters
This briefing from Linklaters considers the implications of a Joint Statement made by the negotiators for the EU-27 and UK Government detailing new provisions of the draft Article 50 withdrawal agreement upon which consensus has been reached. The briefing concludes that, whilst some of the agreed text is indeed welcome, there are some unfortunate omissions relating to "grandfathering" provisions as well as missed opportunities to address issues in relation to recognition of jurisdiction clauses for contracts concluded after the transition period ends. Click the arrow below to read further.
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.
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.
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.
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.
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. 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.