Direct lending by funds: a comparison of the key EU jurisdictions

2017 ◽  
Vol 18 (4) ◽  
pp. 59-66
Author(s):  
Thomas Smith ◽  
Patricia Volhard ◽  
Alan Davies ◽  
Pierre Maugüé ◽  
Marco Paruzzolo
Keyword(s):  
Financial Services ◽  
Market Access ◽  
Regulatory Regime ◽  
Key Factors ◽  
Content Type ◽  
European Regulatory ◽  
European Regulations ◽  
Direct Lending ◽  
The Uk ◽  
The Eu

Purpose To compare the key EU regimes regulating direct lending by private funds. Design/methodology/approach Provides a summary of the key factors to be examined when looking at the provision of direct loans by private funds in the key jurisdictions, followed by a summary of existing pan-European regulations, followed by a focus regulations in on the UK, Germany, France and Italy. Findings The liberalisation of the national regimes for loan origination by funds in many European Union jurisdictions is a welcome development for both credit fund sponsors wishing to access investment opportunities in these jurisdictions and the borrowers unable to secure adequate financing from traditional sources such as banks. At the same time, the creation of a pan-European regulatory regime, with a passport for lending activities, would further facilitate market access by loan originating funds, as long as such regime does not impose onerous burdens or unnecessary restrictions on the funds and their managers. Practical implications The article gives an insight on the relative opportunities for direct lending funds in the EU, and how best to structure to take advantage of them. Originality/value Practical guidance from experienced financial services lawyers

Developing Trade in Services

2019 ◽  
Vol 250 ◽  
pp. R30-R33
Author(s):  
Alexis P. Lautenberg
Keyword(s):  
Financial Services ◽  
Trade In Services ◽  
Executive Summary ◽  
Services Sector ◽  
Regulatory Standards ◽  
European Regulatory ◽  
The Status ◽  
The Government ◽  
The Uk ◽  
The Eu

Executive SummaryServices are simultaneously the most important sector of the UK economy and the sector facing the biggest challenge as a result of Brexit. The prospective departure from the European Single Market reduces the UK to the status of ‘3rd country’ in respect of services. Accessing the internal market will depend on both subjective and objective conditions that differ from sector to sector, requiring detailed and highly specific arrangements for such industries as aviation and financial services.In practice, the EU can be expected to use these circumstances to discourage the UK from significantly diverging from European regulatory norms, as a matter of policy. In view of the weakness of, and uncertainty surrounding, international moves to oversee, let alone to further liberalise, trade in services, Brexit will thus leave the UK's services sector – and especially financial services – uniquely isolated and exposed. The government will hence need to consider carefully the costs of decisions to diverge from EU regulatory standards, and should be giving great priority to establishing clear objectives for close cooperation between the UK and the EU policy makers and regulators.

Prospects for a close EU-UK trade deal are not good

2019 ◽  
Keyword(s):  
United Kingdom ◽  
Financial Services ◽  
Transition Period ◽  
Content Type ◽  
The United Kingdom ◽  
Uk Government ◽  
The Uk ◽  
The Impact ◽  
Limited Period ◽  
The Eu

Subject UK-EU trade talks. Significance The United Kingdom will leave the EU on January 31, 2020, but will abide by EU rules as part of the transition period, which runs to December 31, 2020. During this limited period of time, London and Brussels will seek to negotiate a permanent trading relationship. While the transition deadline can be extended, the UK government has committed not to seek an extension. Impacts The impact of no trade deal or a 'thin' one may force the UK government to increase taxes in order to meet spending pledges. UK financial services will rely on an equivalence deal with the EU; London hopes to agree this by mid-2020. The EU’s future trade policy will focus on having stronger sanction powers as well as legal ones for those that unfairly undercut EU firms.

Unstable politics may make trade deals uncertain

2019 ◽  
Keyword(s):  
Financial Services ◽  
Trade Agreement ◽  
National Elections ◽  
Content Type ◽  
The Us ◽  
Ideological Divergence ◽  
The Uk ◽  
Trade Deals ◽  
Trade Partners ◽  
The Eu

Subject Politics and trade talks. Significance Understanding the factors that determine how long trade negotiations take will help businesses navigate the uncertainty, as the UK government prepares to negotiate trade agreements once it leaves the EU. The Comprehensive Economic and Trade Agreement (CETA) between Canada and the EU took seven years to finalise. Less comprehensive renegotiations of international agreements can be shorter, including the US-Mexico-Canada agreement, which took less than two years. Impacts UK sectors highly exposed to the EU or United States, including automotive and financial services, face prolonged investment uncertainty. Timing of national elections, lobbying and the ideological divergence between trade partners will determine post-Brexit trade deal talks. Continued polarisation of major economies' electorates will delay or stop other global deals, including on foreign aid and climate change.

ESMA issues Brexit opinions to EU regulators: a warning shot not only to the UK but also to the EU27

2017 ◽  
Vol 18 (4) ◽  
pp. 50-52
Author(s):  
William Yonge ◽  
Simon Currie
Keyword(s):  
Financial Services ◽  
Design Methodology ◽  
Content Type ◽  
Regulatory Response ◽  
Market Participants ◽  
Financial Firms ◽  
Practical Guidance ◽  
The Uk ◽  
Practical Implications ◽  
The Eu

Purpose To summarize and analyse four opinions issued in May and July 2017 by the European Securities and Markets Authority (“ESMA”) concerning regulatory and supervisory arbitrage risks that arise as a result of increased requests from financial market participants to relocate activities and functions in the EU27 following the UK’s decision to withdraw from the EU, and the expected regulatory response to those risks. Design/methodology/approach Discusses the possible relocation of financial firms, activities and functions following the UK’s decision to withdraw from EU; the resulting cross-sectoral regulatory and supervisory arbitrage risks that ESMA foresees; nine principles that ESMA enumerates to guide its regulatory response to those risks; some common themes that emerge from ESMA’s July Opinions; and the implications for UK firms and trading venues seeking to establish a presence in the EU 27. Findings ESMA foresees regulatory and arbitrage risks in Brexit and a potential “race to the bottom” as certain national regulators jostle for and grab UK market share. Practical implications UK firms and trading venues seeking to establish a presence in the EU27 from which to operate will need to give detailed consideration and focus to the resources and operational substance which will need to be located in the jurisdiction in which that presence is established. Originality/value Practical guidance from experienced financial services, securities and fund management lawyers.

CAI threatens to undermine EU-US cooperation on China

2021 ◽  
Keyword(s):  
Human Rights ◽  
Financial Services ◽  
Market Access ◽  
Content Type ◽  
Chinese Business ◽  
Regulatory Landscape ◽  
Rights Issues ◽  
Over Time ◽  
The Eu ◽  
Economic Agreement

Significance Under the CAI, which is the first economic agreement between the EU and China, Beijing made most of the concessions in order to get a deal agreed before US President Joe Biden’s inauguration. The EU secured greater liberalisation of market access and some commitments on unfair practices and human rights issues. Impacts The CAI will not undermine EU instruments (foreign subsidy control and investment screening) to scrutinise Chinese business in the EU. The CAI will likely highlight the EU’s struggles to use economic deals to shape the regulatory landscape outside the bloc. Over time China could well decide to water down some of its commitments in the CAI. UK firms will be at a disadvantage where the EU has negotiated greater market access, including in financial services and the auto sector.

UK shipping may not find Brexit such a bounty

2017 ◽  
Keyword(s):  
Financial Services ◽  
Raw Materials ◽  
Government Support ◽  
Shipping Industry ◽  
Short Term ◽  
Content Type ◽  
On Demand ◽  
Red Tape ◽  
The Uk ◽  
The Eu

Subject Brexit and the UK shipping sector. Significance The shipping industry wants to maintain maximum openness with the EU27, avoiding restrictions that might delay the transit of goods or passengers and retaining ‘passporting rights’ for maritime-related financial services into the single market. At the same time, it wants to re-examine the regulatory framework, scrap any measures that damage UK competitiveness or create unnecessary red tape, and adopt a ‘Britain First’ approach to procuring maritime products and services and securing government support. The desire to achieve both aims is close to ‘having one’s cake and eating it’. Impacts Reorienting UK trade towards the wider world would boost shipping, particularly if more raw materials were sourced from outside the EU. In practice a reorientation of trade would have limited effects on the UK shipping sector beyond the ports handling such trade. An increase in traffic would be offset by both a decline in short-sea trading with Europe and Brexit’s short-term impact on demand.

India-UK free trade deal is likely around 2019

2016 ◽  
Keyword(s):  
International Trade ◽  
United Kingdom ◽  
Free Trade ◽  
Financial Services ◽  
Content Type ◽  
Decision To Leave ◽  
The United Kingdom ◽  
The Uk ◽  
Economic Ties ◽  
The Eu

Subject Outlook for a possible free trade deal between India and the United Kingdom post-Brexit. Significance UK business minister Sajid Javid's first overseas visit following the UK decision to leave the EU ('Brexit') was to India on July 8. Both countries have long eyed closer economic ties, and Brexit will likely provide a catalyst. Impacts Prospects for growth are strongest in areas including IT, financial services, pharmaceuticals, textiles and light engineering. The United Kingdom could support India in future international trade negotiations. In time, the India-UK relationship may become diplomatically stronger than the India-US relationship.

scholarly journals Euro clearing after Brexit: shifting locations and oversight

2020 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Sven Van Kerckhoven ◽  
Jed Odermatt
Keyword(s):  
The European Union ◽  
Content Type ◽  
Financial Centre ◽  
European Regulatory ◽  
Financial Infrastructure ◽  
The Uk ◽  
City Of London ◽  
The Impact ◽  
The City ◽  
The Eu

Purpose This paper investigates the impact of moving Central Counterparty Clearing Houses (CCPs) that clear euro-denominated transactions to the Eurozone after the withdrawal of the UK from the European Union. Prior to Brexit, the City of London had a dominant position in euro-clearing, but in the aftermath of Brexit, clearing houses might decide to move to the EU27. This paper aims to investigate the impact of moving euro-clearing to the EU27. Design/methodology/approach This paper provides an economic, political and legal investigation based on desk research. It studies the relevant materials, as they relate to the functioning of Central Counterparty Clearing in the aftermath of Brexit, with specific attention to the potential shift of locations and oversight. Findings The development of a EU27 financial hub and the possibility to increase oversight over euro-denominated financial transactions, which were partly at the roots of the financial and Eurozone crisis, could strengthen the market shaping of European financial markets. However, localizing euro-denominated transactions in Europe could potentially give rise to efficiency losses and a higher risk for companies and investors. Furthermore, the European regulatory framework currently faces certain weaknesses, obstructing the regulatory potential of the EU. Research limitations/implications As the Brexit negotiations are not yet finished, this paper does not intend to set out a definite outcome of the processes currently taking place. Practical implications Shifting locations and oversight of CCPs as a result of Brexit could lead to the establishment of a large financial centre within the EU-27. At the same time, it is to be expected that such a development will have a significant impact on the financial infrastructure of the City of London. Originality/value There exists an important trade-off with regard to shifting locations that need to be at the forefront of the discussions and the negotiations when dealing with Brexit. This seems to be neglected in a lot of the current policy debates. This paper takes stock of the ongoing debate and how it relates to the functioning of CCPs.

Brexit: what are the options for the financial services industry?

2016 ◽  
Vol 17 (4) ◽  
pp. 45-53 ◽  
Author(s):  
David Sahr ◽  
Mark Compton ◽  
Alexandria Carr ◽  
Guy Wilkes ◽  
Alexander Behrens
Keyword(s):  
Financial Services ◽  
Political Development ◽  
The European Union ◽  
Content Type ◽  
Cross Border ◽  
The Future ◽  
Financial Services Firms ◽  
The Uk ◽  
The Impact ◽  
The Eu

Purpose To explain the impact for financial services firms of the UK’s vote to leave the European Union (EU) and to assess the possible options for conducting cross-border financial services between the UK and EU in the future. Key to this is the likely loss of the EU “passport” for financial services that allows a firm licensed in one EU state to offer its services freely throughout all EU states. Design/methodology/approach Explains the process by which the UK will leave the EU and negotiate future trading arrangements; the key considerations for financial services firms doing cross-border business in the EU; the various options for cross-border business in the future; and the key steps financial services firms should be taking to respond to the vote to leave the EU. Findings Many issues still remain uncertain and are unlikely to be resolved for a number of years, but long lead times to implement solutions mean that firms should be considering their options now. Practical implications Firms should be evaluating their current reliance on EU passports and the alternative options that might be suited to their business, such as the “quasi-passports” available under certain specific EU laws or relocation of part or all of their business. Originality/value Legal analysis and practical guidance concerning an unprecedented political development with profound impacts on financial services in Europe, by experts with long-term experience of EU negotiations and financial services gained from working for the British government, regulators and regulated firms.

Progress on EU-Swiss deal remains a distance away

2021 ◽  
Keyword(s):  
Financial Services ◽  
Market Access ◽  
Single Market ◽  
Corporate Tax ◽  
Content Type ◽  
Financial Services Firms ◽  
Export Industries ◽  
Tax Structures ◽  
The Eu

Significance Political divisions in Switzerland have put the deal on hold. By threatening some of Switzerland's existing privileges, the Commission is seeking to increase the pressure for the signature and ratification of a deal agreed in late 2018. Impacts The experience of negotiating Brexit will make the EU less willing to give concessions to third countries over single market access. Switzerland’s export industries and financial services firms would be worst affected if the IFA collapses. The Swiss economy would be one of the worst-affected in Europe from global reforms to corporate tax structures.

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