Feature

Russia’s quest for financial independence through the use of digital assets, cryptocurrencies and digital currencies

The Russian Central Bank and its regulatory bodies, which were historically against all things crypto, took a co-ordinated U-turn shortly after Russia's invasion of Ukraine in Feburary 2022 and the imposition of unprecedented sanctions by the West - because they realised that cryptocurrencies and digital assets can be used the evade sanctions. Having been subject to widespread sanctions for over two years and effectively cut off from the international payment system (SWIFT), and largely shut out of Western's bank and bank accounts, Russia is trying to adjust the "new order" and its international isolation - both economically and financially. It is finding new ways to receive monies from the West for its raw materials and to trade independently of Westen banks  and the US dollar, so that it can transact with both friendly and not so friendly countries on the premise that West cannot  trace those transactions.

The potential impact of the new UK Listing Rules on securities litigation

The radical restructuring of the UK listing framework by the Financial Conduct Authority (FCA) has shifted greater risk to investors. This article examines the potential impact of the overhaul of the regime on future claims brought by shareholders under ss 90 and 90A of Financial Services and Markets Act 2000.

From London to Berlin: insights on taking security over receivables in Germany

This article explores some of the complexities and key considerations for lenders and legal practitioners when taking security over receivables in Germany. We consider: (i) the types of security that can be taken over receivables and their key features/formalities; (ii) how to navigate contractual restrictions on transfer; (iii) potential pitfalls when taking security over receivables; and (iv) secured creditors’ priority when realising security over receivables in an insolvency.

Lost in the labyrinth: the Court of Appeal in KVB Consultants

The decision of the Court of Appeal in KVB Consultants Ltd & Ors v Jacob Hopkins McKenzie Ltd & Ors  [2024] EWCA Civ 765 has important implications for anyone who deals with, appoints or acts as an appointed representative (AR). It applied a number of principles from existing case law but reached a surprising conclusion regarding how a principal can limit the responsibility it takes for its AR.

Money laundering in the supply chain: the use of “adequate consideration” to “cleanse” criminal property

Section 329 (2)(c) of the Proceeds of Crime Act 2002 exempts a person from criminal liability where criminal property is acquired for adequate consideration. Previous authority appeared to suggest that the provision of adequate consideration had the effect of "cleansing" criminal property. Thus, anyone who subsequently dealt with the property would not commit a money laundering offence. 

In Rex (on the application of World Uyghur Congress) and National Crime Agency  [2024] EWCA Civ 715, 26 June 2024  the Court of Appeal rejected this interpretation. In a decision which will have significant implications for businesses and professional advisors, the court held that the “adequate consideration” exemption is no more than a personal exemption. It has no impact on the status of the property as criminal property or recoverable property. It does not therefore operate to cleanse tainted property. 

Financial sanctions and investment treaty arbitration

Financial institutions may be the subject of sanctions unilaterally imposed by individual states. While sanctions can be challenged through domestic means, foreign investors affected by sanctions have the right to bring proceedings against the sanction-imposing host state before international arbitral tribunals, provided investment treaty protection exists. Final awards, in particular monetary remedies against the host state, can be enforced globally.

Debt financing of AI companies: identifying “AI assets” for the security net

In this article the authors identify the assets of the AI ecosystem, provide a non-exhaustive methodology for identifying them and explain how you would typically take security over certain of those assets in the context of a debt finance transaction.

Tacking: what further advances since 2002?

In this article, the authors consider issues of interest to the syndicated loan market in the context of the “tacking of further advances” to existing lending secured by registered land, or mortgages of registered land, in light of s 49 of the Land Registration Act 2002, developments in jurisprudence on the topic, and the work of the Law Commission. The authors are indebted to Mr Trevor Moore, for his article in this journal entitled ‘Real Estate as Security following The Land Registration Act 2002’ (2004) 2 JIBFL 56, upon which this work builds. This work assesses developments since that date and addresses problems arising in the modern loan market where; syndicate lenders make further advances directly to the borrower under ancillary facilities/RCFs; where loan agreements state that the obligation to make a further advance does not apply for so long as there is an un-remedied breach of covenant; how the concept of the “agreed maximum amount” operates under facilities where there are incremental loans and up-tiering transactions; and how the absence of a robust intercreditor agreement with a subsequent chargee can expose the “senior” lenders to US-style “lender-on-lender” violence.

Anti-suit relief: Bourlakova and Magomedov and the non-contractual jurisdiction

The recent line of authority preceding Bourlakova ¹ and Magomedov²  had largely centred on the contractual jurisdiction for granting an anti-suit injunction (ASI) to restrain or prevent the commencement of foreign proceedings. However, the cases of Bourlakova  and Magomedov  respectively considered the non-contractual jurisdictions for granting ASI relief and anti-anti suit injunctive (AASI) relief. This article will examine the contractual and the non-contractual bases for the grant of ASI and AASI relief, before considering the Bourlakova  case and the court’s approach to single forum disputes, as well as the Magomedov   case and the court’s willingness to protect judicial process in England and Wales.

Mandatory collateralisation of hedging transactions under senior secured facilities

This article considers the implications of mandatory collateralisation being applied to hedging transactions under senior secured facilities.