Secondary buy-out meaning

ARCHIVED: This Practice Note is archived and is no longer maintained. A bank loan is treated as a non-performing loan (NPL) if more than 90 days pass without the borrower making the agreed instalments or interest payments. Banks experienced an accumulation of NPLs in their books when borrowers' inability to repay was intensified by the financial crisis and subsequent recessions. When NPLs are proportionately high, banks' capacity to manage the riskiness of their lending is diminished. NPLs are a supervisory priority for the European Central Bank (ECB), which monitors the overall level of NPLs across euro area banks. Under the supervisory review and evaluation process (SREP), the ECB assesses whether individual banks adequately manage loan risk and whether they have suitable strategies, governance arrangements and processes in place. The ECB also regularly undertakes co-ordinated exercises to review the asset quality of the banks it directly supervises—it works with national supervisors to establish a consistent and effective approach to tackling and reducing bad loans, drawing on best practices as set...

How to use this checklist This Checklist sets out the principal obligations for traders who provide subscription arrangements under the Digital Markets, Competition and Consumers Act 2024 (DMCCA 2024). It addresses which agreements are captured by the subscription regime, how those rules operate for free trials, the pre-contract information to be given, reminder communications, and consumers’ rights to cancel. It also covers cooling-off entitlements and refunds. This Checklist serves as a practical aid to traders gearing up for commencement of the pertinent provisions of DMCCA 2024, Part 4, Chapter 2. DMCCA 2024 secured Royal Assent on 24 May 2024, with some elements taking effect from that day. Nevertheless, the bulk of the significant provisions and duties in the DMCCA 2024 will commence through secondary legislation. The government has set out its indicative schedule for commencement of the substantive elements of DMCCA 2024: DMCCA 2024, Part 4, Chapter 2 is among the final measures to begin, expected at the earliest in Spring 2026, though subsequent government signals indicate the rules...

STOP PRESS: A major overhaul of the UK listing framework took effect on 29 July 2024, removing the premium and standard segments and introducing a single listing category for equity shares in commercial companies. The commercial companies category is strongly disclosure-led, with an emphasis on transparency, and sits alongside other listing categories, such as shell companies, secondary listing and closed-ended investment fund categories. A new UK Listing Rules sourcebook came into force to deliver and implement the reforms, and the previous Listing Rules sourcebook was revoked in full. For further details, see Practice Note: Reform of the UK listing regime—fundamentals. This Checklist reflects the regime as it stood before 29 July 2024. The allotment and issue of shares are governed by statutory rules, which vary according to the type of company proposing the allotment (private or public, listed or unlisted) and whether that company has a single class or multiple classes of shares. This checklist sets out the procedure for a listed company to allot shares and to...

The Retained EU Law (Revocation and Reform) Act 2023 (REUL(RR)A 2023) confers a suite of legislative powers, allowing the relevant national authorities to reshape retained EU law (REUL) by making secondary legislation to amend, revoke, restate and/or replace REUL and assimilated law. Its principal powers are located in REUL(RR)A 2023, ss 11–16. The core procedural obligations (including parliamentary scrutiny routes) for these instruments appear in REUL(RR)A 2023, s 20 and Schs 4–5. REUL(RR)A 2023 sifting process—background Under REUL(RR)A 2023, before specified statutory instruments (referred to here as ‘REUL reform SIs’) are formally presented to Parliament, they must first undergo a preliminary sifting exercise to confirm the suitable parliamentary procedure. Details of the sifting mechanism are set out in REUL(RR)A 2023, Sch 5 Pt 2, para 6...

STOP PRESS: A major overhaul of the UK listing framework took effect on 29 July 2024, removing the premium and standard listing segments and introducing a single listing category for equity shares issued by commercial companies. The commercial companies category is strongly disclosure-led and sits alongside other listing categories, namely shell companies, the secondary listing and closed ended investment fund categories. To implement the reforms, a new UK Listing Rules sourcebook came into force, and the former Listing Rules sourcebook was withdrawn. For further details and background, see Practice Note: Reform of the UK listing regime—fundamentals. This Flowchart sets out the listing regime as it applied before 29 July 2024, for ease of reference. You can view or print a full sized PDF version...

In this issue: Equity capital markets Corporate governance Public company takeovers (Offers) Daily and weekly news alerts New and updated content Dates for your diary Trackers New Q&As Useful information Equity capital markets FCA publishes consultations and policy statement aimed at capital markets reform The Financial Conduct Authority (FCA) has unveiled a suite of measures intended to reinforce the UK’s capital markets. These include: a consultation on proposed rules to create the new Public Offers and Admissions to Trading Regime (POATRs), which will replace the current UK Prospectus Regulation; a consultation setting out proposals for a new activity of operating a public offer platform; and a consultation on derivatives trading obligations designed to improve secondary market regulation, cut systemic risk and minimise disruption for firms. The package also contains policy statement PS24/9, Payment Optionality for Investment Research. See: LNB News 26/07/2024 25. FCA publishes updated checklists and forms following implementation of UK...

In this issue: New technologies Internet Media Advertising, marketing and sponsorship LexTalk®TMT: a Lexis®Nexis community Daily and weekly news alerts New and updated content Dates for your diary Trackers Latest Q&As Useful information New technologies Getty Images drops Stability AI copyright infringement claims from UK trial MLex reports that on 25 June 2025 Getty Images abandoned its direct copyright infringement claims against image generator Stability AI during the first day of closing submissions in a landmark three‑week High Court hearing in London. It is still pursuing allegations of trade mark infringement, passing off, secondary copyright infringement and issues around licensing, yet the move is a setback for the UK’s creative sector, which had sought clear precedent to provide broad copyright protection in the UK against AI models’ web scraping. See: Getty Images drops Stability AI copyright infringement claims from UK trial. IAB Tech Lab proposes framework for AI content usage compensation...

In this issue: Brexit highlights Brexit SIs Post-Brexit transition guidance Judicial review Constitutional and administrative law Equality and human rights Information law Subsidy control and state aid Public procurement Management and strategic planning Daily and weekly news alerts New and updated content Dates for your diary Trackers Useful information Brexit highlights The Cabinet Office has released an explanatory memorandum concerning the UK/EU TCA Partnership Council decision (COM(2024)297). The proposal sets out the EU’s stance in the Partnership Council on amending Annex 3 to the Trade and Cooperation Agreement between the EU and UK, which covers product-specific rules of origin. See: LNB News 15/11/2024 16. The House of Commons Library has issued a briefing on assimilated law reform, outlining the Labour government’s approach following the 2024 general election. The second statutory report, published in July 2024, notes that of the 6,735 items of retained EU law (REUL)...

STOP PRESS: A major overhaul of the UK listings regime took effect on 29 July 2024, scrapping both the premium and the standard listing segments and replacing them with a single category for equity shares in commercial companies. That commercial companies category is heavily disclosure-led and sits alongside other listing categories, including the shell companies category, the secondary listing category and the closed ended investment fund category, among others. A new UK Listing Rules sourcebook came into force to deliver these changes, and the previous Listing Rules sourcebook was revoked. For further information and detail, see Practice Note: Reform of the UK listing regime—fundamentals. This Practice Note reflects the regime as it existed prior to 29 July 2024. A limited company may buy back shares in itself, provided conditions set out in the Companies Act 2006 (CA 2006) are satisfied, where applicable. This is known as a share buyback or a purchase of own shares. In addition to CA 2006, there are other rules and guidelines that are relevant...

This fundamentals note reviews the wide-ranging overhaul of the UK listing regime that came into force on 29 July 2024. It also outlines the core provisions affecting companies seeking, or already holding, a listing as described in the UK Listing Rules sourcebook, including: Equity shares (commercial companies) International commercial companies secondary listing Shell companies Transition category What is the background to the UK listing regime reforms? Post-Brexit, with scope to depart from EU capital markets rules, the government announced an independent review of the UK listing regime in November 2020. Led by Lord Hill, a former EU financial services commissioner, the review aimed to make the UK more attractive for IPOs and improve capital raising on UK markets. The UK Listing Review Report, released in March 2021, set out a series of recommendations for both the government and the FCA. It noted a decline in London IPO activity in recent years—between 2015 and 2020 London accounted for just 5% of...

The 21st century has delivered vast pieces of primary legislation, exemplified by the Companies Act 2006 with its 1,300 sections and 16 Schedules. In parallel, the yearly volume of statutory instruments has expanded, rising from 1,664 in 2008 and peaking at 3,485 in 2014. Totals then declined from 2016, with 1,387 passed in 2018. Even so, the growing length of Acts of Parliament and the surge from 100 or fewer statutory instruments to more than 1,000 a year beginning in 1970 and 1972 underline the mounting codification of UK law and a persistent shift towards secondary legislation. Getting started The Office of the Parliamentary Counsel’s Drafting Guidance is an essential reference, particularly for primary legislation. Alongside practical advice on drafting and the legislative process, it sets out the rationale behind modern drafting approaches. The guidance covers: the overarching drafting principle of clarity specific language issues, including gender neutrality commonly employed drafting techniques drafting repeals, amendments and modifications of existing enactments subordinate...

Important—this provisional allotment letter (pal) is of value and is negotiable. Your prompt attention is required. This invitation lapses at [ insert time ] on [ insert date ]. The full pal must be produced at the time of payment. Should you be uncertain about any part of this pal, or unsure what steps to take, you should seek your own financial advice without delay from your stockbroker, bank manager, solicitor, accountant, or another suitably qualified independent financial adviser duly authorised under the Financial Services and Markets Act 2000 (fsma), or, if you are located outside the United Kingdom, from an appropriate qualified independent financial adviser duly authorised within your jurisdiction. If you dispose of, transfer, or have already disposed of or otherwise transferred all of your ordinary shares (other than ex-rights) held in certificated form before [ Insert time ] on [ Insert date ], please send this pal together with form x (form of renunciation) on page [ Insert page number ], completed immediately, to the buyer...

FORTHCOMING CHANGE relating to the modernisation of stamp taxes on shares framework : From 2027, stamp duty and SDRT will be superseded by a single, self-assessed tax on securities—the securities transfer charge (STC)—with both payment and reporting carried out via a new online portal. The STC is expected to align closely with the proposals consulted on in 2023. Finance Bill 2026 (FB 2026) introduces, from Royal Assent, a power to make secondary legislation enabling taxpayers to pilot the new digital service, allowing them to self-assess their stamp taxes on securities obligations and submit transactions electronically through that service. For more on the modernisation of stamp taxes on securities, see: News Analyses: Budget 2025—Tax analysis—Stamp and transfer taxes Tax update spring 2025—Stamp taxes on shares modernisation Tax update spring 2025—Tax analysis—Stamp and transfer taxes TAMD 2023—Stamp taxes on shares modernisation TAMD 2023—consultation—stamp taxes on shares Tax Administration and Maintenance Day—27 April 2023—Stamp and transfer taxes Testing through...

STOP PRESS: A major overhaul of the UK listing framework took effect on 29 July 2024, removing premium and standard listing segments and replacing them with a single listing category for equity shares in commercial companies. The commercial companies category is disclosure-led and sits alongside listing categories, such as shell companies, secondary listing and closed ended investment fund categories. To implement these changes, a new UK Listing Rules sourcebook came into force, and the previous Listing Rules sourcebook was revoked. This represents a significant restructuring of the regime. For more details, see Practice Note: Reform of the UK listing regime—fundamentals. This Precedent sets out the listing regime as it was prior to 29 July 2024...