Herbert Smith Freehills
Authors
Articles by company
Pooled audit: a welcome step forward, but not yet over the line …
The option to participate in collective assurance activities is welcome, but this article makes the case for more guidance from sectoral regulators and competition authorities to allow banks and their service providers to truly get comfortable.
1 SEP 2021Sanctions compliance considerations for financial institutions post-Brexit
Following the end of the transition period after the UK’s departure from the EU, the UK’s autonomous sanctions regime (under the Sanctions and Money Laundering Act 2018 (SAMLA 2018)) came into force on 31 December 2020. This regime is largely similar to the EU sanctions regime, but there are several differences which may have implications for financial institutions’ sanctions compliance programmes.
1 MAY 2021Regulatory divergence after Brexit: laying the foundations for a new UK regime
On 24 December 2020, the UK and EU finally reached agreement on a post-Brexit trade deal. As expected, and as acknowledged by Prime Minister Boris Johnson on Sunday 27 December,1 that agreement contains very limited provision for cross-border trade in financial services. On the same day, Chancellor Rishi Sunak suggested that the UK will now be able to “do things a bit differently” on financial services. This In Practice article briefly examines what that could mean for UK financial sector regulation in the near future and beyond.
1 FEB 2021Amending legacy contracts
In this In Practice piece the author considers the various approaches to documenting amendments to legacy contracts to cater for near risk-free rates.
1 OCT 2021Overview of anticipated focus areas for BBLS litigation
The government’s Bounce Back Loan Scheme (BBLS) provided small businesses with quick access to funding during the coronavirus pandemic. However, significant claims volumes are now anticipated given the combination of large numbers of applicants, standardised terms and a unique (and homogenous) application process. As collection and recovery activities begin, we consider some possible areas of focus for claims against BBLS lenders.
1 FEB 2022Cryptocurrency, proprietary injunctions, freezing orders, and trusts: the law is not cryptic
Despite the meteoric rise of cryptocurrency as an asset class, there has to date been little case law concerning it. This article looks at a recent cryptocurrency case which applies established principles relating to trusts, proprietary injunctions and worldwide freezing orders to this new asset class: Wang v Darby [2021] EWHC 3054 (Comm). This decision confirms that familiar legal principles apply equally to cryptocurrencies, although digital assets can shine a light on established areas of law. We discuss below the key issues arising from the application of established principles to novel circumstances and the way in which Wang v Darby represents a missed opportunity to address the more interesting points arising in existing case law concerning cryptocurrency.
1 APR 2022Scope 1, 2 and 3 emissions as KPIs in sustainability-linked loans
This In Practice article explains the differences between Scope 1, 2 and 3 emissions as key performance indicators (KPIs) and sustainability performance targets (SPTs) in sustainability-linked loans and then explores factors to consider when adopting Scope 3 emissions.
1 FEB 2023Capital requirements for banks holding cryptoassets: rushing towards the same direction
Existing UK and EU capital requirements on cryptoasset exposures will soon be updated to reflect the new international standard published by the Basel Committee on Banking Supervision (BCBS).
1 MAY 2023When AI meets the Consumer Duty
Artificial intelligence (AI), with its power to process large volumes of data, can provide more personalisation of financial products and services for consumers at greater scale and efficiency, and at lower cost. It can, in principle, enable firms to provide better support for vulnerable customers (for example, to consumers without standard credit histories, or through the use of simplified advice). All this could help to advance the FCA’s desired outcome of increased access through greater financial inclusion.1 This In Practice article considers the recent Discussion Paper to foster debate on this issue.
1 DEC 2022Implications of proposed legislation in New York for sovereign debt restructuring
The New York legislature is currently considering three Bills that could substantially impact sovereign debt markets if enacted. The Bills would: (i) limit private creditors’ recovery in the event of sovereign default; (ii) block private parties from purchasing sovereign debt for the purpose of litigating a renegotiation of the debt; and (iii) create a binding, bankruptcy-like restructuring mechanism for sovereign debtors. This In Practice article looks at some of the potential implications of the New York Bills.
1 AUG 2023
