Passporting fears push market to Brexit-proof loans

Author: Amélie Labbé | Published: 3 May 2017

The likely loss of passporting rights has increased the desire for flexibility in managing loan assets, according to speakers at the Loan Market Association’s (LMA) Brexit event last week in London.

The LMA has addressed this uncertainty through the release in April of its designated entity clause, which aims to Brexit-proof loan agreements after the UK withdraws from the EU. The organisation initially published a note in September 2016 announcing it was working on the contents of this clause.

Losing passporting rights

Passporting allows UK banks to lend into another jurisdiction without the need for a licence because they are a regulated entity in the UK. Under UK law, lenders don’t need...


 

 

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