In Practice
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Approaching the endgame: LIBOR transition in the Swiss syndicated loan market
As readers of JIBFL will be well aware, it is expected that LIBOR will no longer be available after the end of 2021, with the exception of certain tenors for USD LIBOR that will be published until the end of June 2023 and, potentially, a synthetic LIBOR for certain currency-tenor settings. While EUR LIBOR will cease to be available, there are no current plans to discontinue EURIBOR. With the Swiss franc (CHF) being one of the five LIBOR currencies and CHF LIBOR being used as reference rate for the calculation of interest in virtually every CHF denominated syndicated credit facility agreement, LIBOR transition poses an immense challenge to the Swiss syndicated loan market. Although we have seen the first pathfinder transactions using risk free rates,1 the Swiss market is yet to experience a big shift.
13 June 2024Financing real estate-backed operating businesses: documentary pitfalls
In this In Practice article the authors examine the potential issues that can arise when using the LMA Facility Agreement for Real Estate Finance Investment Transactions (LMA REF Facility Agreement) as the basis for documenting credit facilities made available to real estate-backed operating businesses.
13 June 2024Pooled audit: a welcome step forward, but not yet over the line …
The option to participate in collective assurance activities is welcome, but this article makes the case for more guidance from sectoral regulators and competition authorities to allow banks and their service providers to truly get comfortable.
13 June 2024EU Sustainable Finance Taxonomy
In this In Practice article, Daniel Nevzat provides a short overview of the Climate Delegated Act outlining the technical screening criteria (TSC) which set the conditions for an economic activity to qualify as contributing substantially to climate change mitigation or climate change adaptation under the EU Taxonomy Regulation.
13 June 2024Comparing sustainable debt products and standards
Whilst standards like the Equator Principles and the Responsible Ship Recycling Standards have been applied to specific sectors or asset classes for some time, standards with wider application to the bond and loan markets are now gaining traction. These often have different purposes and consequences for non-compliance. With regulatory frameworks and market practice still developing, further innovation in sustainable debt standards and the refinement of existing standards is expected.
13 June 2024In search of lost time: Part 1: the automation and data thesis
In this In Practice article Charles Kerrigan considers automation and standardisation in commercial lending transactions. Part 2 of this article considers the effect on these topics of the fintech industry’s development.
13 June 2024SPAC -linked margin loans
The recent increase in the use of special purpose acquisition companies (SPACs) has been generating much discussion in the press, the finance industry and among lawyers and regulators. The trend began in the US and is spreading across the globe, with securities exchanges in a number of jurisdictions competing to position themselves as an alternative listing venue of choice for SPACs. In this In Practice article, the authors consider their structure and risk profile and whether the securities that they issue have the potential to be a new asset class for margin lenders.
13 June 2024Towards algorithm auditing in financial services
We are witnessing a rapid development and adoption of algorithms. At the same time, we need to develop the monitoring and managing of their safety. In the algorithmic age companies are (and should be) increasingly concerned about potential harm that their systems can cause, both in terms of reputation and financially. Knight Capital’s experience (~$450m) caused by a glitch in its algorithmic trading system is a paradigmatic example. As such, in addition to societal, legislative and regulatory pressures, companies themselves are keen to assure their systems are trustworthy.1
13 June 2024Expectations of privacy for individuals under investigation
The appeal in ZXC v Bloomberg is expected to be heard by the Supreme Court later this year. The outcome of this appeal could diminish the expectation of privacy currently afforded to individuals under investigation by law enforcement agencies. With the law on corporate criminal liability under review by the Law Commission, and a growing appetite for claims against senior executives in the financial services sector, this is a case to watch. This piece provides a refresher on the rights currently conferred on suspects.
13 June 2024Sanctions compliance considerations for financial institutions post-Brexit
Following the end of the transition period after the UK’s departure from the EU, the UK’s autonomous sanctions regime (under the Sanctions and Money Laundering Act 2018 (SAMLA 2018)) came into force on 31 December 2020. This regime is largely similar to the EU sanctions regime, but there are several differences which may have implications for financial institutions’ sanctions compliance programmes.
13 June 2024
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