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.
The LMA is aware of the publication of the UK's legislation which is intended to "onshore" EU law with effect from 29 March in the event that the UK leaves the EU without an agreed transition period. As is the case with any potential change in legislation, the LMA is not planning to make any changes to its English law documentation before any proposed change in English law actually takes effect.
The LMA is in the process of considering appropriate changes to be made to the relevant legislative references in its documentation in the event that the UK's onshoring legislation becomes effective on 29 March. If the UK's onshoring legislation becomes effective on 29 March, the LMA's intention is to publish a table of those suggested changes on or about that date so as to release them to members as soon as possible. Those changes will then be incorporated into its documentation suite over the following weeks.
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.
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.
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 UK Government has failed to secure the approval by the House of Commons of the Withdrawal Agreement on its third attempt. The UK will now leave the EU with "no deal" on 12 April 2019 unless an alternative route is found. This briefing by Clifford Chance sets out the next steps, possible alternatives and their implications.
The FCA is hosting two events for regulated firms in preparation for the UK leaving the European Union. Both events will be livestreamed and include the opportunity for viewers to submit questions. These events are intended to give firms a clearer understanding of the FCA's approach to managing the impact of Brexit.
The House of Commons Treasury Committee has launched an inquiry into the future of financial services in the UK after Brexit.
Written submissions should be submitted by 30 April 2019. The LMA will be submitting a response to the inquiry.
UK Temporary Permissions Regime for the marketing of EU27 funds – notification window open until 28 March 2019
The notification window for EU27 managers wishing to use the Temporary Permissions Regime (TPR) to continue to market their funds and sub-funds after 29 March 2019 has now opened. EU27 managers have been advised by the FCA not to postpone their submission until there is confirmation as to whether a transitional period will apply or not.
The UK Government has deposited an instrument of accession to the Hague Convention on Choice of Court Agreements which is due to enter into force on 1 April 2019.
instrument of accession is expected to be withdrawn if the Withdrawal Agreement
is ratified and approved by the UK and EU.
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.