The Finance Brief: issue 1

Welcome to the first edition of The Finance Brief. Each quarter Field Fisher Waterhouse LLP will be providing you with legal updates and analysis relevant to the world of private banking: be it a recent case which has caused a stir amongst lenders, an important regulatory change for lenders to take note of, a pertinent tax issue or general advice on taking security over different types of assets. Please see the list of contributors to this edition below, and feel free to contact them directly for further information and advice on their particular topic.

Enviroco and the Missing Subsidiary

In each issue of The Finance Brief, we intend to look at a recent or upcoming case that is significant in the context of finance. We start with the Supreme Court decision in Farstad Supply AS v Enviroco Limited [2011] UKSC 16, where taking security over shares produced a very curious result.

Spotlight on the Financial Collateral Regulations

Collateral-takers may take new comfort from recent amendments to the Financial Collateral Arrangements (No.2) Regulations 2003 (the “Regulations”), which clarify the meaning of “possession” for the purpose of determining whether a security interest will fall within the scope of the Regulations.

The Fine Art of Art Loans

In recent years, with volatility in the stock and property markets, borrowers are increasingly choosing to offer as collateral for loans a different kind of asset - the type found hanging on their walls. In this article we look at the common issues that arise when lenders are considering whether to finance a loan secured on art.

A Source of Interest?

Does interest paid under this loan agreement have a UK source? – this is one of the most common questions asked of tax lawyers by their finance colleagues. In many cases, this simple question will have a simple answer, but in other cases there can be a difficult and uncertain analysis.

The Finance Brief will be back next quarter when, amongst other items, we will be providing guidance on the enforcement of loans secured over trophy properties and we will also look at ISDA issues that lenders commonly come across when hedging arrangements are included as part of the loan package. Please feel free to let us know if there are any topics which you would like us to discuss in future editions.