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European Regulator October 2011

10/10/2011

October 2011

Welcome to the October edition of European Regulator.

As Europe braces itself for the next phase of the recession which began in 2008, a phase which could see debt default by one or more countries in the European Union, the regulators in Britain and across Europe have been releasing numerous reforms and recommendations.

In this edition of European Regulator we look first at the final report of the Independent Commission on Banking which make recommendations designed to ensure the UK taxpayers will not again have to fund the rescue of banks that are 'too big to fail'.  The most controversial of the recommendations is the 'ring fencing' of banks' retail operations from their riskier investment banking operations.

Meanwhile, substantial changes to the UK Takeover Code came into effect on 19 September resulting in increased levels of disclosure, increased protection against 'virtual bids' and most radically, a prohibition on deal protection mechanisms such as break fees.  

Following long and difficult negotiations agreement was reached last year by European ministers as to the ability of Alternative Investment Fund Managers based outside the EU to market Alternative Investment Funds within the EU.  We summarise the key third country co-operation issues identified by the European Securities and Markets Authority which need to be settled before the new laws take effect in July 2013.

Also in this edition we examine enforcement of sovereign debt.  The issues raised are now very much in the spotlight given the possibility of sovereign debt default by several European nations.

Finally, in our In Brief section, we look at a number of recent legal and regulatory developments in the UK including registration of securities, the role of arbitrators and compulsory UK employer contributions to pensions.

Best wishes,

Robert Hanley, Partner

London

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Key developments in the European financial sector regulation

IN THIS ISSUE:

​The UK Banking ICB recommends deferred chastity

The Independent Commission on Banking (ICB) released its final report on reforms to the UK banking sector on 12 September.  Read more

UK Takeover Code Reforms

The final form of the amendments to the UK Takeover Code came into effect on 19 September 2011. Read more

Alternative Investment Fund Managers Directive - Third country co-operation agreements in the spot light

The European Securities and Markets Authority has released its draft technical advice on implementing measures under the AIFMD which relate to third countries (ie countries outside the EU). Read more

Enforcement of sovereign debt - a familiar but very different story

If, as some fear, the current European sovereign debt crisis does come to a tragic conclusion then one of the many issues the resulting chaos may potentially throw-up is the ability of investors to enforce or attempt to enforce debt securities which have been issued by a defaulting sovereign state. Read more

In Brief

Summary recent legal and regulatory developments in the UK including:

  • Postponement of UK security registration changes
  • Arbitration - Supreme Court rolls back position in relation to arbitrators
  • Compulsory UK workplace pensions on the way for lower earners
  • First corporate manslaughter conviction
  • Rodenstock - English law sufficient nexus for scheme of arrangement
  • Supreme Court confirms that flip clauses don’t violate anti-deprivation principle

Read more