In Practice

Is litigation funding compatible with Shariah principles?

Last but not least: consultation involvement key to avoiding regulatory divergence in public and private securitisations

In this In Practice article Kate Patane considers the growing divergence between EU and UK reporting obligations in public and private securitisations and how detailed feedback can drive internal “change management” processes and encourage the authorities to increase regulatory alignment.

Biodiversity finance: becoming second nature

International financial markets have started to show significant interest in nature and biodiversity. Whilst climate change and greenhouse gas emissions have made the headlines in recent years, there has been much less focus on their equally important counterparts, nature and biodiversity. However, that has started to change.

European middle market CLOs could rise in 2024: despite some challenges

Collateralised loan obligations (CLOs) are a prominent feature in the European capital markets landscape. Last year, public issuance of CLOs in Europe generated a volume of €26bn from 69 deals, remaining relatively steady from 2022 despite a slow start to the year. However, the market is off to a strong start in 2024, with year-to-date volume at the end of February standing at €6.3bn and with market participants predicting a bumper year.

Term SOFR: a non-US market perspective

In this In Practice article the authors consider the nature of Term SOFR and how the LMA Term SOFR Exposure Draft addresses certain key documentation issues.

UK Pension Schemes Act 2021: new criminal offence in force: lenders take note

This In Practice article considers the new criminal offence introduced by the Pension Schemes Act 2021 in relation to defined benefit (DB) pension schemes, which came into force on 1 October 2021, in terms of what it means for lenders and transactions, as well as how it fits into the wider DB pensions framework.

NPE servicers prepare to retain risk under EU Securitisation Regulation

In this In Practice article the authors suggest practical steps for servicers to consider before acting as retainer of risk in traditional securitisations of non-performing exposures (NPEs).

The Quincecare duty: 30 years on

In a sign of the times, the first quarter of this year has seen three cases on a bank’s duty to refrain from executing a payment instruction where it has reasonable grounds to suspect the transaction may be an attempt to misappropriate the account-holder’s funds. Until now, in the thirty years since it was first recognised, cases relating to the so-called Quincecare duty have been few and far between. This in itself indicates the narrow circumstances in which the courts have found the duty has not only been breached, but even arisen in the first place.

ESG: authorities’ potential enforcement action against companies

The environmental regulatory risk landscape is evolving in ways that companies may not yet have considered. It is already well-known that financial regulators are working to protect capital market participants from greenwashing by the adoption of sustainability disclosure standards and the creation of a green taxonomy. Comparatively less attention has been paid to authorities with broad regulatory remits covering most or all sectors of the economy, which are increasingly using their powers to take enforcement action or cause reputational harm in respect of companies who engage in greenwashing. Meanwhile, private actors such as non-governmental organisations (NGOs) with ESG mandates can opportunistically seek to trigger or encourage investigations by such authorities, so as to pressure businesses to change behaviours. In this article, we examine the role of two such authorities: the Competition and Markets Authority and the UK National Contact Point.

Is it time to review your “standard” increased costs clauses in facility documentation?

With the advent of the final stage of Basel III implementation (often referred to as Basel IV), it is time again for lenders and borrowers to consider the formulation of “boiler plate” increased costs clauses in their existing credit documentation and future transactions. In this In Practice article we highlight some of the potential interactions the latest reforms may have with commonly seen drafting both in the UK and the US and discuss some of the devices which borrowers and sponsors may use to mitigate the likelihood of being on the receiving end of an increased costs claim in the future.