Rights of First Refusal - Refused! (Update)
We recently released a blog in relation to the FCA's proposals to ban 'future service restrictions’ and ‘restrictive contractual clauses’ in investment and corporate banking engagement letters and contracts where these clauses cover future corporate finance services (please see below for the link to our earlier blog).
The FCA has now published the Policy Statement on the matter. The Policy Statement confirms that with effect from 3 January 2018, firms will be banned from entering into written agreements with a provision that gives them a right to provide future primary market services to their clients. As noted in our earlier article, this ban will not extend to bridging loans.
For a more detailed description of clauses which may be affected by this prohibition, please refer to our earlier article or click here to access the Policy Statement on the matter.