Investment only meaning

Securing litigation funding can take considerable time for clients and their legal advisers; however, supplying a funder-ready application can accelerate matters. The table below serves as a checklist of the principal issues most third party funders expect you to cover, grouped into three categories... Recovery Funders are commercial enterprises that typically see a return only when money is actually received from the defendant(s). Applicants should pinpoint and evaluate any enforcement risks and raise these with the funder at the outset. Tolerance for enforcement risk differs from funder to funder. If a funder is uneasy about the route to recovery, it is unlikely to back the claim, irrespective of the merits and quantum. Therefore, where material recovery risks exist, applicants ought to outline a recovery strategy, even at a preliminary stage. This helps a funder judge, at first sight, whether the matter is fundable... Financials Funders regard legal claims as an asset class. Consequently, they must grasp the headline economics of their investment in the event of...

ARCHIVED: This Practice Note has been archived and is no longer being maintained. Structural banking reform and ring-fencing The global financial crisis underscored the necessity for international structural reform of banking. In the UK, the Government brought forward a suite of measures to bolster the resilience of the UK financial system and to avoid taxpayers carrying the burden when banks fail. The Financial Services (Banking Reform) Act 2013 (FS(BR)A 2013) inserted fresh measures into the Financial Services and Markets Act 2000 (FSMA 2000), obliging the largest UK banks to segregate, within their groups, essential retail banking services from other activities, such as investment and international banking. This separation is termed ring-fencing. Its objective is to shield UK retail banking from shocks arising elsewhere in a banking group, which could otherwise adversely affect global financial markets. Ring-fencing legislation applies only to UK banks with a three-year average of more than £25bn in ‘core deposits’—broadly from individuals and small to medium-sized businesses...

Trigger event Make sure the event that obliges the seller to offer the property to the buyer (often the defined term ‘Disposal’) is drafted as broadly as possible. Think carefully about routes by which the seller might sidestep the pre-emption right, such as: disposing of only part; making a gift; or granting a long lease for a premium. The seller may want freedom to grant rack-rented leases to safeguard the investment in the property. Balance this against the buyer’s objectives. In a development setting, the buyer may not wish to spend time obtaining vacant possession and may therefore consider that even rack-rented leases should activate the seller’s offer. Steer clear of defining the trigger as arising when the seller ‘proposes to dispose’ of the property, as that wording can merely invite a disagreement about when that point in time occurs...

Spanish solar cases The DC Circuit is set to decide whether to enforce arbitral awards totalling about US$386m against Spain after it scaled back economic incentives for renewable energy projects, a ruling with significant implications for EU investors while the EU’s courts persist in rejecting enforcement of intra‑EU awards. The court will examine if enforcement is possible even though Europe’s highest court has concluded that the arbitration clause in the Energy Charter Treaty is invalid. The DC Circuit’s judgment will influence not only these awards but also more than a dozen further awards outstanding against Spain, as well as any previous and potential future arbitral awards granted to EU investors against EU Member States. Whatever the appeals court decides, the matter is very likely to be queued for a challenge before the US Supreme Court. In these proceedings, Dutch subsidiaries of US-based NextEra Energy Inc, Luxembourg-based 9REN Holding SARL and Blasket Renewable Investments LLC seek enforcement of their awards against Spain, together valued at approximately €359.3m (around US$386m). Blasket’s...

Aon Plc reported that merely 2% of those polled from defined benefit-style schemes plan to allocate to UK productive finance during 2025–26, overall. The firm noted, notably in comparable surveys run in recent years, a waning appetite among pension schemes for illiquid assets, according to Aon. We expected this pattern to create a major obstacle to the UK government’s aims of boosting pension scheme investment in UK productive finance, the company added...

Original news Mr Y (CAS-57893-P0C6)—20 August 2025 / Ms R (CAS-58612-P1X1)—18 July 2025 Summary The Pensions Ombudsman dismissed a complaint concerning a loan note investment. The scheme’s independent trustee bore no responsibility for losses arising from this high-risk, speculative asset. The complainants had completed forms confirming the trustee was not giving investment advice and could not be held accountable for any investment loss. The arrangement ran on an execution-only basis. The trustee also undertook appropriate due diligence before proceeding. In light of these factors, no liability ultimately attached to the trustee for the loan note loss. The determination highlights the perils of placing funds into non-standard investments. Accordingly, the complaint failed. What were the facts? Ms R and Mr Y were members of the Westerby Pension Scheme (the Scheme). The Scheme was a self-directed, self-invested personal pension (SIPP) scheme. Westerby Trustee Services Limited (Westerby) was the Scheme’s independent trustee and administrator...

This Practice Note addresses the regulated activity of managing investments... Definition Managing investments is a regulated activity under article 37 of the Financial Services and Markets Act 2000 (Regulated Activities) Order 2001, SI 2001/544 (RAO). It entails exercising discretion over assets that beneficially belong to another person, where those assets consist of, or include, any investment categorised as a ‘security’, a ‘structured deposit’ or a ‘contractually-based investment’. For further detail on what constitutes a ‘security’, a ‘structured deposit’ or a ‘contractually-based investment’, see Securities, structured deposits or contractually-based investments below)... The exercise of discretion This regulated activity only arises where the investment manager exercises discretion. Where portfolio management is non-discretionary—for example, the manager purchases shares strictly on client instructions, or simply receives and forwards client orders—the work is more likely to fall within another regulated activity, such as ‘dealing in investments, either as principal or agent’ (RAO SI 2001/544, arts 14 and 21) or ‘arranging deals in investments’ (RAO SI 2001/544, art 25)...

This Practice Note forms part of the Lexis+® UK Corporate private equity buyout transaction toolkit. Timing Due diligence is typically undertaken after heads of terms are signed and confidentiality arrangements are in place. It then proceeds in parallel with negotiation of the main sale documents (share purchase agreement and associated ancillary papers) and the equity documents (investment agreement, senior debt (loan facility) agreement and, if required, loan note instruments). Most diligence is carried out early in the deal to enable the parties to agree suitable warranty and/or indemnity protection in the formal papers, and to support the seller’s and target management’s disclosures against their respective warranties. Disclosure letters are drafted and negotiated alongside the share purchase agreement and the investment agreement, and executed at the same time as those instruments. A first draft disclosure letter is usually produced only once diligence is well progressed and initial drafts of the relevant documents have already been circulated. What happens during this phase? Due diligence The private...

Stop Press: Section 49 and Schedule 7 of the Finance Act 2026 revise the UK’s domestic rules on UK permanent establishments of non-UK companies, applying to accounting periods (for corporation tax) and tax years (for income tax) that start on or after 1 January 2026. The measures update both the definition of a UK permanent establishment and the methodology for attributing profits to a UK permanent establishment, each intended to align more closely with the OECD Model Tax Convention. They also adjust how the investment manager exemption operates. For further details, see News Analysis: Budget 2025—Tax analysis — International. A non-UK resident company trading in the UK may either incorporate a UK subsidiary or trade through a permanent establishment (PE), commonly a branch. This Practice Note sets out the key UK tax considerations relevant to that choice, while recognising that tax is only one of several matters to be weighed...

Notice: About this Proposal This Proposal has been produced by [ names of Special Administrators ], the Special Administrators of [ Investment Bank name ], exclusively to discharge their statutory obligation under para 49, Sch B1 of the Insolvency Act 1986, as amended by the Investment Bank Special Administration Regulations 2011, SI 2011/245, and for no other purpose. It should not be relied upon by any other person, for any purpose, or in any alternative context. This Proposal was not prepared with a view to its use, and is not appropriate to be used, to inform any investment decision concerning the debt of, or any financial interest in, [ Investment Bank name ] (in Special Administration). Any estimated outcomes for creditors set out in this Proposal are illustrative only and must not be treated as guidance as to the actual outcomes for clients, creditors or other stakeholders. ...

Term sheet for an unsecured syndicated facility for an investment grade borrower incorporated as a limited liability company in England and Wales with or without guarantees In respect of a £[ • ] term loan facility for [ insert name of borrower ] Date [ • ] 20[ • ] This term sheet is illustrative only, outlining the matters expected in the final documentation. It serves as a guide to content. It does not constitute an offer to make the facility available. Provision of the facility is conditional on satisfactory due diligence, credit committee approval [ , the mandate letter ] and satisfactory final documentation...

Confidential Important Notice Memorandum No. [ ________ ] provided to [ _____________________ ]. This memorandum has been compiled by [ insert name of seller ] (the Seller ) with support from [ insert name of financial adviser ] [ (the Financial Adviser ) ], in relation to a potential sale by the Seller of [ insert description of the business or assets to be sold, eg 'the business of XYZ Ltd' or, in the case of a sale of a company, 'the issued share capital of XYZ Ltd' ] (the Proposed Transaction ). It is supplied for information purposes only to a restricted number of potential buyers (each a Recipient ) and is provided solely to assist them in deciding whether they wish to pursue a further investigation of [ XYZ Ltd ]. This memorandum is not intended to constitute the basis of an investment decision or of any decision to enter into a transaction with the Seller...