Legal Practice Notes

In debt capital markets ( DCM), ‘due diligence’ describes the exercise of gathering, organising, collating and verifying details about the issuer, its operations, the market it trades in, and the legal and regulatory framework that applies to it in a structured way. The findings are presented to prospective investors as part of the offering process for their review and assessment. STOP PRESS: On 17 June 2025, the European Commission issued its long-awaited review of the EU Securitisation Framework, together with a detailed legislative proposal to amend the EU Securitisation Regulation ( Regulation ( EU) 2017/2402). The proposed changes touch on due diligence, among other matters. The package is moving through the legislative process, but the final rules have not yet been adopted. Reasons for conducting due diligence In international investment-grade public DCM transactions, the lead manager typically oversees the due diligence process for all...

This Practice Note offers direction on reading and applying the pertinent CPR provisions. The applicable court may impose further requirements, so remain alert to any extra rules—see the section Court specific guidance below for more detail. Depending on the court, those additional provisions may differ. What is a writ of delivery? If a claimant succeeds in a claim for the return of identified goods, the High Court can order the defendant to hand those goods back to the claimant without delay, as directed by the order. Should the defendant not comply within the terms of the order, a writ of delivery enforces that order. This is a High Court-issued document directing High Court Enforcement Officers to secure delivery of the goods by the defendant. A writ of delivery falls within the CPR 83.1(2)(l) definition of a ‘writ of...

This Practice Note sets out guidance on issues-based costs orders, explaining their role and when the court may deem such an order suitable. It also addresses potential pitfalls, instances where the court has considered making such an order against a party who otherwise succeeded overall, and the broad principles guiding the court when imposing an issues-based costs order. Note: before 1 October 2013, the discretion was found in rule 44.3, and earlier authorities cited here refer to that rule. What are issues-based costs orders? An issues-based costs order enables the court to permit or refuse recovery of costs by reference to discrete issues arising within the litigation. The present discretion is contained in CPR 44.2(6)(f), which provides that the paying party must meet the receiving party’s costs incurred in relation to identified issues addressed during the proceedings......

Note— To check whether notification thresholds in Israel and worldwide are triggered, see Where to Notify. 1. Have there been any recent developments regarding the Israeli merger control regime and are any updates/developments expected in the coming year? Are there any other ‘hot’ merger control issues in Israel? In January 2022, a new Director General of the Israel Competition Authority (the Director General and the ICA, respectively) took office— Adv. Michal Cohen. Ms Cohen has served at the ICA for 15 years and previously acted as the ICA’s Legal Adviser. From the very start of her tenure, Ms Cohen adopted a firm, hands-on approach, launching multiple enforcement actions, including for gun-jumping breaches, and tightening the standard for clearing merger deals. In December 2021, while serving as acting Director General, Adv. Cohen presented the ICA’s activity to the Knesset’s Economic Affairs Committee and, among other things,...

Banking regulation— Israel— Q& A guide This Practice Note presents a jurisdiction-specific Q& A on banking regulation in Israel, published within the Lexology Getting the Deal Through series by Law Business Research ( Law stated at: 6 March 2023). Authors: Arnon, Tadmor- Levy— Aviad Lachmanovitch; Guy Fuchs 1. What are the principal governmental and regulatory policies that govern the banking sector? Israel’s banking rules have taken shape over many years. They originated with the Banking Ordinance 1941, from the British Mandate era, which empowered the governor of the Bank of Israel to appoint a Supervisor of Banks. That ordinance was largely supplanted by the Banking ( Licensing) Law 1981. The Bank of Israel Law 1954 established the state’s central bank, and this statute was later wholly replaced by the Bank of Israel Law 2010. Any banking...

What is ISO 14001:2015? ISO 14001:2015 is an internationally recognised standard that sets out the requirements for creating, implementing and operating an environmental management system ( EMS). Part of the ISO 14000 series for managing environmental responsibilities, it offers a structured method for planning, delivering and overseeing an EMS. It is not a legal or regulatory obligation, but a framework of documented procedures subject to independent audit and verification... The guidance explains it can be applied, in full or in part, to drive systematic improvements in environmental management. It is a voluntary standard intended for organisations in any industry; registration or certification is not compulsory. Organisations may self-declare their EMS, including details of any third-party audit and verification undertaken. Implementation follows the ‘plan-do-check-act’ ( PDCA) cycle, requiring ongoing review and continual improvement, evidenced by EMS...

Taxation regime What factors determine tax liability in your jurisdiction (eg domicile, residence or citizenship)? On the Isle of Man, only residence is relevant for tax purposes. In broad terms, a person is considered resident for Island tax if they: are present for more than six months in any tax year (which ends on 5 April) spend over 90 days per tax year on average across four or more years, with residence then applying from the fifth year arrive on the Island intending to become resident What taxes apply to an individual’s income? For 2025–26, the personal allowance is £14,750. Income above this is taxed at 10% on the first £6,500 of excess and 21% on anything further. Married couples and civil partners can choose joint assessment, which doubles the allowances to £29,500 and defers the higher rate until after £13,000. Personal...

Note—to check whether notification thresholds in the Isle of Man and worldwide are satisfied, consult: Where to Notify. 1. Have there been recent developments regarding the regime? What are the main points of interest and are any further updates/developments expected? Are there any other ‘hot’ merger control issues in the Isle of Man? The Competition Act 2021 ( Act 2021) established, for the first time, a merger control framework within Isle of Man law. Although the Act 2021 is now in force, drafts of several significant items of secondary legislation under it—covering matters such as the notification thresholds—were rejected by the local legislature in January 2025; accordingly, the thresholds for notification remain unknown. Under the Transfer of Competition Functions ( OFT to CURA) Order 2025, responsibility for enforcing the Act 2021—including merger control—shifted in the spring of 2025 from the Office of Fair Trading to the...

For general information on the Isle of Man, see the Practice Note: Private Client jurisdictional guide— Isle of Man. For information on foundations, including their UK tax treatment, consult the Foundations subtopic. Legal framework Foundations in the Isle of Man arise under statute, having been brought into Manx law by the Foundations Act 2011 ( Foundations Act). A Manx foundation is a distinct legal person; yet, unlike a company, it has no shareholders. It holds assets in its own name with a view to furthering the foundation’s objects. Those objects may comprise the following: persons, purposes (charitable or non-charitable), a combination of both. These must be certain, reasonable and possible, and not unlawful, contrary to public policy or immoral. The foundation is administered under a constitution consisting of two principal documents, namely: the foundation instrument the rules of the...

This Practice Note has been created in collaboration with Shafaq Sadiq of Wedlake Bell. In Islam, the ethic of ‘giving and helping’ lies at the heart of faith, as such acts greatly please Allah Subhanahu Wa Ta'ala (swt—the most glorified, the most high). The Islamic institution known as the ‘ Waqf’ enables the dedication of wealth and is regarded as a very noble practice encouraged by Islamic law. for charitable or religious purposes; and as a means of family wealth management, offering financial stability to the donor’s family during their lifetime or after their death. Waqf The core idea of Waqf is sustainability, ensuring a continuing charitable endowment. The term derives from the Arabic ‘ Waqafa’, meaning to halt or hold; in essence, ownership ceases by transferring the property wholly to Allah swt. Waqf is a distinctive instrument within...

Inheritance is a core component of Shariah, the path to be followed. Its rulings are ordained by Allah subhanahu wa ta'ala ( SWT) — Allah, the most glorified, the most high. A person’s assets, whether during life or after death, must never be used in a manner that conflicts with what Allah SWT has decreed. In Islam, breaching these commands is regarded as a major sin. The Quran sets out the inheritance laws plainly and in depth. It is the primary source of Shariah, with the Sunnah as the secondary source. The Sunnah comprises the words and actions of the Prophet Muhammad, peace and blessings be upon him ( PBUH). While other acts of worship are mentioned in the Quran and elaborated in the Sunnah of the Prophet Muhammad ( PBUH), the inheritance rulings are explained by Allah SWT directly in the...

Two-thirds of a deceased person’s property is to be allocated in line with the Islamic rules of succession set out in the Quran. Primary heirs, also known as Quranic shareholders ( Ashabul- Furud), constitute the foremost class among the different categories of beneficiaries. Within this class, some heirs can never be entirely left out so long as no bar exists to stop them receiving their portion, while others may see their entitlement reduced because other shareholders are present... Primary heirs are: Father Paternal grandfather Husband Uterine brother Mother Wife Daughter Paternal granddaughter Maternal and paternal grandmother Full sisters Agnate sister Uterine sister There are three sets—parents, spouses, and children—who invariably inherit and cannot be barred whenever they exist in the estate. For instance, a sister of the deceased will not receive a share if the...

This Practice Note reviews a range of Islamic or Shari’ah‑compliant structures commonly used in project financings and the documentation associated with them. It proceeds on the basis that readers have a working grasp of the key principles of Islamic finance; for detail, see Practice Notes: Key principles of Islamic finance and Sources of Shari’ah. It likewise assumes familiarity with standard conventional project finance frameworks and participants; for these, see Practice Notes: Introduction to project finance, Project finance—key project parties, Project finance—key finance parties, Types of projects and Project finance—meaning of completion and its effect. The structures outlined are typically more intricate, involve additional moving parts and require parties to enter into a greater number of documents than their conventional counterparts. Even so, they are established financing forms, well recognised by most financial institutions and law firms in the...

Structure of an Ijarah transaction Key features This is akin to leasing within Islamic finance: a contract in which the owner (lessor) buys an asset and then grants another party (the lessee) the right to use and benefit from it—the usufruct—for a set period and agreed consideration. The Islamic Financial Institution ( IFI)/lessor acquires the asset at the Customer/lessee’s request and must retain title to the leased property for the whole term. The asset must be non‑consumable and not prohibited under Shari’ah, and it is important that the lessor undertakes the necessary due diligence to verify this. The agreement commonly provides the lessee with an option to purchase the asset at the end of the lease for a nominal amount. The lessor and lessee enter into a lease agreement under which the lessee pays rent, comprising a...

This Practice Note sets out a high‑level summary of the principal standard‑setters and actors in the Islamic finance sector and their respective functions, covering the Islamic Financial Services Board ( IFSB), AAOIFI, the different categories of banks and other financial institutions that provide Shari’ah‑compliant products and services, as well as Shari’ah supervisory boards or committees. It outlines who establishes the standards and who delivers or oversees services within the market... Islamic Financial Services Board The IFSB functions as an international standard‑setter, comprising regulatory and supervisory authorities with a vested interest in maintaining the soundness and stability of the Islamic financial services sector—defined broadly to cover banking, the capital market and insurance. Established in 2002 in Kuala Lumpur, Malaysia by the central banks of Bahrain, Iran, Kuwait, Malaysia, Pakistan, Saudi Arabia and Sudan, together with AAOIFI, the Islamic Development Bank and the...

The Islamic finance glossary brings together essential definitions and abbreviations for terms frequently used across the Islamic finance industry and its products, and directs readers to relevant resources. It is continually expanding as additional entries are identified. Please note that the transliteration of Arabic terms into Roman script follows no fixed system and simply mirrors preferences commonly adopted within the Islamic finance sector... Auditing and Accounting Organisation for Islamic Financial Institutions ( AAOIFI ) The foremost Islamic, international, autonomous, not‑for‑profit organisation that develops accounting, auditing, governance, ethics and Shari’ah standards for Islamic Financial Institutions ( IFIs) and the global Islamic finance industry. Established in Bahrain in 1991, it is supported by institutional members from over 45 countries, including: central banks and regulatory authorities financial institutions accounting and auditing firms legal firms Its standards are adopted by leading Islamic financial...

Importance of charity in Islam In Islam, charity is understood as an intimate offering shared between the giver, Allah subhanahu wa ta'ala ( SWT) — Allah, the Most Glorified, the Most High — and the person who benefits from the goodwill. It is not a means to seek applause from people; therefore, giving quietly is deemed the most excellent way to give, as discretion preserves sincerity. In certain circumstances, offering support publicly is preferred so that it may motivate others to follow the example and multiply goodness. Charity in Islam is far more weighty and purposeful than a straightforward cash donation. The idea of charity holds a deeper resonance and, consequently, is not confined to material worth; it may appear in many forms within daily conduct. A person’s conduct can itself be a charitable deed when it prompts him to do good from his...

The Islamic finance sector has expanded swiftly in recent years, as financial institutions and their customers look to explore alternative ways of financing and raising funds. It is an asset‑based system, and Islamic finance has seen rising deployment for both full and partial funding of aircraft—assets regarded as permissible investments under Islamic law ( Shariah). Principles of Islamic finance The principles of Islamic finance are drawn from Shariah as prescribed in the Quran, the sacred scripture of Islam believed to record the Word of God revealed to the Prophet Mohammed, together with the Sunnah, the traditions and practices of the Prophet Mohammed. These sources set out the principles applied to finance. Islamic finance is established to ensure that wealth remains pure and is utilised justly, in accordance with these overarching principles, safeguarding fairness in application and conduct: No unjust enrichment— Riba ...

What are credit derivatives and what are credit events? What is a credit derivative? A credit derivative is a contract between two parties whose value is derived from the credit risk of a third party (the reference entity)—a corporate, sovereign, municipality or similar organisation. The product points to defined underlying debts of that entity, for example bonds or loans, known as the reference obligations. Its principal aim is to allow one party, the protection buyer, to purchase credit protection to offset the risk of the reference entity defaulting. The party bearing that credit risk is the protection seller. If a credit event affects the relevant reference obligation, the contract’s payment provisions are activated and the trade is settled. For an overview of credit derivatives, see Practice Note: What are credit derivatives? What is a credit event? A credit event occurs when the reference entity defaults. For each...

ISDA documents The 1992 and 2002 ISDA Master Agreements (the Master Agreements) are standard-form templates issued by the International Swaps and Derivatives Association, Inc ( ISDA). In this Practice Note, any mention of Sections within a Master Agreement and Parts of a Schedule should be read as references to the 2002 ISDA Master Agreement and Schedule, unless stated otherwise. For general information on negotiating ISDA Master Agreements, see: Introduction to negotiating ISDA documents. What are 'agreements'? ' Agreements' are, in substance, covenants. Covenants (also called undertakings) are commitments made by one party to another to carry out, or to refrain from, specified actions. A breach of a covenant will usually also trigger an event of default......