Feature

Distressed insurers: recent insolvency reforms and future resolution framework

In this article the authors consider the changes introduced by Financial Services and Markets Act 2023 to enhance the insolvency framework and tools available in relation to distressed insurers – and the proposed new UK Insurance Resolution Regime which is intended to provide the Bank of England with enhanced powers to manage the failure of systemically important insurers.

Welcome clarification from the DIFC Court on the amendments to the UAE Federal Banking Law

In this article, Zoe O’Sullivan reviews the recent decision of Punjab National Bank v Shetty (CFI No. 079/2020, 19 January 2024) issued by the Dubai International Financial Centre (DIFC) Court (and comments on its implications for financial institutions established in the DIFC).

The social side of sustainable finance

This article looks at the rise of social loan financing spurred on recently by COVID-19 recovery financing and discusses the challenges for borrowers and lenders in using the use of proceeds and sustainability-linked social loan structures.

A fresh look at the three Rs: the EU’s CCP Recovery and Resolution Regulation

The EU Regulation on Recovery and Resolution of CCPs came into law in February 2021. It sets a clear path for CCPs in near-terminal difficulties, broadly following previous international guidelines. New tools have been created to enable CCPs to recover, and a familiar toolkit has been made available to resolution authorities. Yet problems remain: the purpose of resolution is still unclear, the tools for resolution all have drawbacks, and the checks and balances on the process are weak. Nonetheless, this article concludes that the Regulation is a valuable model law for other jurisdictions, while important unanswered policy questions concerning CCPs should remain on the agenda for debate.

Decentralised finance (DeFi): a game-changer or just a passing fad?

DeFi is a term used to describe decentralised applications that provide financial services using blockchain technology. DeFi leverages on technologies such as smart contracts and open-source protocols to execute peer-to-peer transactions without the use of any centralised party. Given the increasing prevalence and receptiveness towards DeFi, stakeholders in the financial industry should possess some basic understanding of this new alternative to the traditional financial system. This article outlines the distinctive characteristics, underlying benefits and risks of DeFi applications, and the regulatory approaches towards regulating such applications.

Protection of client assets under Belgian law and trust-like structures

The purposes of this article is to give a brief overview of the reception of the trust concept under Belgian law, including the recognition of a foreign law trust, as well as to provide a description of certain trust-like structures under Belgian law.

Hedging risk-free rates

Creditor beware: proving for debts in limited recourse loans following Lendy

Converting fiat money into cryptoassets over a blockchain: what new laws and regulations are required?

When real money is converted into cryptocurrencies, such transactions do not fit into established financial services regulation. This is the case whether analysing the UK, Sweden, Singapore or any other leading FinTech jurisdiction. After clarifying the difference between fiat money and cryptoassets, this article explains why distributed ledger technology (DLT) does not fit into existing regulations, such as MiFID governing trading venues. Nor do other existing financial regulations sufficiently protect consumers. Alternative solutions are proposed in the form of new financial services law focused on crypto exchanges, DLT and wallet providers.

SFDR Commission Q&As: more Qs than As

On 26 July 2021, the European Commission published Q&As under the EU Sustainable Finance Disclosure Regulation (SFDR) with the aim of clarifying certain aspects of the regime. However, as we consider below, the Commission’s feedback in the Q&As has given rise to more questions than answers.