Banking & Finance Law

In this issue Shipping finance Real estate finance Sustainable finance Debt capital markets Derivatives Structured products and securitisation Sanctions Daily and weekly news alerts New and updated content Useful information Shipping finance The armed conflict raging in Iran, together with the virtual halt of commercial movements through the Strait of Hormuz since early March 2026, has triggered an interruption to global shipping and energy trade with no clear precedent in the post-war period. This narrow corridor is a vital bottleneck in energy supply chains: around one-fifth of the world’s daily petroleum demand, and a similar share of traded liquefied natural gas, typically passes through it. Leading regional producers-including QatarEnergy, Kuwait Petroleum Corporation, Shell and Bapco-have already declared force majeure against their contract parties. The ripple effect is worldwide, leaving energy and...

The report covers: The European Commission has released the report it forwarded to the European Parliament and the Council, presenting its assessment of the markets for commodity derivatives, for emission allowances and for derivatives of emission allowances, under Article 90(5) of the Markets in Financial Instruments Directive (MiFID II) (Directive (EU) 2014/65), as updated in February 2024. It states that input from stakeholders, together with the Commission’s subsequent appraisal based on market trend analysis, did not indicate an immediate need for substantive revisions to the reviewed parts of the commodity derivatives framework, although certain targeted amendments might be contemplated in future... data aspects relating to commodity derivatives the ancillary activity exemption position limits, position management controls and position reporting Source: REPORT FROM THE COMMISSION TO THE EUROPEAN PARLIAMENT AND THE COUNCIL on the Commission’s assessment of the markets for commodity...

The European Securities and Markets Authority (ESMA) is consulting on revised guidelines for standardised processes and messaging protocols. This assessment forms part of ESMA’s efforts to help market participants get ready for the move to a T+1 settlement cycle. Submissions are requested by 7 July 2026. ESMA will subsequently review the input received and plans to release the final report, featuring updated guidelines, by October 2026......

In the United Kingdom, audits of accounts and reports fall under the Companies Act 2006 (CA 2006), notably Parts 16 and 42. By virtue of CA 2006, s 475, a company must have its annual accounts for each financial year audited in line with CA 2006, Pt 16, unless it can make use of one of the exemptions available. The expression ‘audit’ is not defined in the CA 2006......

In recent years, most sectors have felt the effects of innovation and emerging technology. Much of this progress is driven by the aim to lower costs and enhance efficiency. So far, disruption within the debt capital markets has been limited, chiefly due to significant entry barriers such as capital requirements and regulatory scrutiny. This is changing, however, as these markets begin to adopt new technologies... What is fintech? There is no single agreed definition of ‘fintech’, but the term is commonly used to capture technology-enabled innovation within financial services. cryptocurrencies/cryptoassets (eg bitcoin) blockchain or distributed ledger technology (DLT) artificial intelligence (AI) and machine learning (ML) crowd funding platforms ‘telematics-based’ insurance (eg where data is collected to monitor driving) mobile banking Why is fintech being explored for the debt capital...

In response to the conflict in Ukraine, multiple governments, operating under their respective sanctions frameworks, have introduced sanctions and export controls against targets in Russia and Belarus. This Practice Note acts as a starting resource for banking lawyers considering how UK sanctions since March 2022 affect finance transactions. This Practice Note: offers introductory detail on the various types of sanctions—see: What is meant by sanctions? summarises, or signposts how to locate, further measures announced or in force in the UK (and elsewhere)—see: How do I find out what UK, US and EU sanctions there are against Russia and Belarus? identifies where to find guidance on the impact on finance transactions—see: What steps should financial institutions be taking following the additional measures? highlights, at a high level, steps to take and issues to consider for both existing and new lending...

[ Insert Lead-in Language ] Illegality Termination Event We hereby refer to our notice dated [ insert date ] (the ' Original Notice ') formally notifying you of the occurrence of an Illegality Termination Event. If Party A is the sole Affected Party and Section 5(b)(i)(1) applies: In accordance with Section 6(b)(ii) of the Agreement, we have employed all reasonable endeavours (not requiring us to bear any loss, save for immaterial, incidental expenses) to, within 20 days from the date on which the Original Notice became effective, diligently transfer all of our rights and obligations under the Agreement in respect of the Affected Transactions to another of our Offices or Affiliates so that the Illegality Termination Event no longer subsists......

DATE Parties [ [ name ] of [ address ] [ and [ name ] of [ address ] ] OR [ name ] and [ name ] both of [ address ] ] ( Lender [ s ] ) [ [ name ] of [ address ] [ and [ name ] of [ address ] ] OR [ name ] and [ name ] both of [ address ] ] ( Borrower [ s ] ) 1 Definitions For the purposes of this Agreement, the terms below shall have the following meanings: Charge • the security created pursuant to clause 7.1; Default • means: any failure by the Borrower [ s ] to fulfil any of their obligations under this Agreement; or the Borrower [ s or one of...

[ TO BE PRODUCED ON THE LAW FIRM'S HEADED PAPER ] [ insert date ] To: [ insert the lender’s name and address ] Dear [ insert the lender’s full name ] 1 We make reference to the facility agreement dated [ insert date of facility agreement ] between [ insert name of borrower ] (the Borrower) and [ insert name of lender ] (the Lender), as duly amended, novated, supplemented, restated or substituted from time to time under its terms (the Facility Agreement). 2 Unless this letter states otherwise, or context dictates, all terms and expressions used have meanings given in the Facility Agreement for the purposes of this letter......

Do the normal set-off rules apply to an LLP in administration? The Limited Liability Partnerships Act 2000 (LLPA 2000) created limited liability partnerships (LLPs) and is intended to be considered alongside the Limited Liability Partnership Regulations 2001 (LLPR 2001), SI 2001/1090. Through these Regulations, the Insolvency Act 1986 (IA 1986) and the Insolvency (England and Wales) Rules 2016 (IR 2016), SI 2016/1024 are applied to LLPs accordingly......

There are two lines of reasoning for how Brexit could shield the UK from the Financial Transactions Tax (FTT) plans. The first is a policy-based case: the EU states that remain may shy away from a levy that would divert activity from the bloc towards a nimbler, post-Brexit UK, and so abandon the plans. The second, a narrower technical case, is that UK firms would fall outside the FTT once the UK is outside the EU. At present, neither case is especially strong, though the policy rationale appears the more persuasive of the pair to date overall......