March 2017 - Financial Services Institutions Briefing
As we sit here in the UK at the beginning of 2017 a year of very significant political change looms. BREXIT presents many challenges and potential opportunities for the UK financial services sector. It also presents challenges for those overseas institutions who have significant business in the UK and need continuing access to the UK markets post BREXIT.
This edition of our Financial Services Institutions Briefing covers a number of topical issues of interest to our domestic and overseas financial sector clients and contacts.
City slicker or City slacker? The UK financial sector faces Post-Brexit uncertainty
The immediate threat of UK firms losing access to the EU market, of the UK losing its influence over the direction of EU regulations (which the demands of securing “equivalence” status may require the UK to adopt in any event) and of the uncertainty created by such a dramatic change in status (especially if failure to re-join the EEA means passporting rights are lost indefinitely) means that the UK’s pre-eminent status on the global financial services stage appears somewhat in jeopardy.
Key implications of MiFID 2
MiFID 2 has been on our radar since 2011, but since implementation was delayed, many firms have placed their preparations on hold. With the deadline for adoption now steadily approaching, many clients are restarting preparations to ensure compliance by 3 January 2018. This summary sets out the key aspects of MiFID 2 and how firms can ensure their compliance.
Family Investment Companies
With the rate of corporation tax now at 20% and decreasing, holding income producing investments via a company (rather than personally) can be attractive. In addition, an investment company structure also offers a way of making an outright gift, whilst still retaining a degree of control – something which may appeal to clients looking to transfer part of their wealth to their children or grandchildren. Such companies are called “family investment companies” (or FICs).
Personal Guarantees - Key considerations
When additional financial support is needed on a transaction, a personal guarantee can often be the solution. This note looks at the questions that arise when taking a personal guarantee and the issues that lenders should be aware of.
Although Article 50 has yet to be triggered it now looks likely to take place by March 2017. There has been a lot of uncertainty for European Economic Area (EEA) nationals and their employers as to what their position is in the UK and what will happen when the UK exits the EU.
News & Insights
Tackling the risks of the FinTech boom - AML considerations
While FinTech services like cryptoassets can create significant opportunities, they also pose considerable regulatory challenges.
A less restrictive approach?
Our property litigation expert, Emma Humphreys addresses case law in relation to restrictive covenants.
Collective insanity: the problem with offshore income gains - and what the Government hasn’t done about it
Sweeping changes to the taxation of non-UK resident trusts with UK resident settlors not rectified in latest Finance Act.