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Third-country banks authorized to operate cross-border in Spain will not be able to carry out deposit taking activities
The Spanish draft bill implementing Directive (EU) 2019/878 of the European Parliament and of the Council of 20 May 2019 (CRD V), published for public consultation by the Spanish Ministry of Economy in the beginning of August, includes a very relevant change in the regime for authorization of third country banks.
The Companies (Miscellaneous Provisions) (COVID-19) Act 2020 (the Act) was passed by the Dáil on 30 July 2020 and, once commenced, will make temporary amendments to, inter alia, the Companies Act 2014 (the Companies Act) in order to address certain operational challenges that COVID-19 has presented to Irish companies.
We are advising on two projects accepted into cohort 6 of the FCA regulatory sandbox.
Cohort 6 of the FCA regulatory’s sandbox received 68 applications in total from firms looking to bring innovation and improvements to the financial services space. For the first time, the FCA has called out for innovation including propositions that ‘make finance work for everyone’ and ‘support the UK in the move to a greener economy’.
At a time in which many businesses are struggling to adapt to often drastic and sudden losses of revenue flowing from the COVID-19 pandemic and are forced to maximise access to existing facilities and to pursue new financing opportunities, it is not surprising that many financiers have an enhanced interest in the risk mitigation that may be afforded by taking robust security interests in support of corporate loans.
This briefing is a high-level guide for off-shore entities to taking and enforcing security in Australia. Our focus is upon security over Australian assets (other than real property) in the context of a commercial transaction.
On 6 August 2020, the Financial Conduct Authority (FCA) published a report setting out review findings of relending by firms in the high-cost lenders portfolio. The FCA also commissioned a study by PWC as an aid to understand repeat borrowing in the high-cost credit market.
Last week we saw the UK take action to prevent the onshored Benchmarks Regulation preventing UK regulated entities being able to refer to unauthorised spot FX rates, some of which (such as KRW/USD and TWD/USD) are widely used in non-deliverable forward contracts. Its solution was to delay the current transition period under the BMR until the end of 2025. The EC’s second proposed amendment from last Friday to amend the Benchmarks Regulation concerns the same issue, and proposes amending the BMR to permit the EC to designate certain spot FX rate benchmarks.
ISDA and some other European trade bodies have updated and re-issued their October 2018 paper, “The impact of Brexit on OTC derivatives” (not yet on its website). Given the current impasse on a free trade agreement and the absence of completed equivalence declarations, the possibilities of “cliff-edge” disruption to the derivatives market are largely as they were back in 2018, save to the extent that the quantum of affected contracts may have been reduced (if this has indeed happened to a material extent).
The EBA’s latest Brexit statement on Wednesday contained familiar reminders and warnings: passporting will end on 31st December 2020 and if UK firms want to offer services into the EU27, they will need to check they are permitted by the relevant local law and whether or not it permits reverse solicitation nor has an overseas persons exemption, etc), and UK firms should not set up brass plate subsidiaries and then sub-contract everything back to the UK, and instead “ensure that associated management capacity, including appropriate technical risk management capabilities, is effectively in place ahead of time, and is commensurate to the magnitude, scope and complexity of their activities, to allow for effective and efficient management of risks they generate”.