There are many challenges in this dynamic and competitive sector, not least the demanding regulatory controls.
Financial regulation has been replaced by a new structure under the Financial Services Act 2012. This has now been implemented with transfer of regulatory responsibility to the Financial Conduct Authority and the Prudential Regulation Authority, and the creation of the Financial Policy Committee within the Bank of England.
Regulatory capital continues to be an important theme in the context of the adoption of Basel III and the consequential increase in business costs at a time when divestment programmes are requiring businesses to reshape. All this in the backdrop of confidence being hit by the global economic outlook, leading to detailed business reviews being carried out, new processes applied and more pressure being placed on compliance departments.
But opportunities exist as well. We are still seen as a market for investment with overseas and private equity investment increasing in the last year by 5% and 11.5% respectively, largely but not exclusively driven by M&A activity (IMAS). There has never been a more exciting time for the sector. Change is inevitable and we are ensuring clients are best placed to meet the new challenges and take advantage of opportunities the market presents.
We at Brodies replicate our clients’ ethos and approach – robust procedures and documentation, thorough understanding of regulatory requirements, an eye to the horizon and ensuring businesses are future proofed as far as possible but always in the spirit, and following the core driver, of doing business. Bright individuals with track records and experience are a given. We put clients requirements at heart of service. You get advice, not commentary.
Key service areas include:
- Asset management and funds
Brodies provides a full service offering to clients in this sector and we have strength and depth to deal with complex projects such as:
- Strategic combinations, joint ventures and acquisitions of financial services businesses, including acquisitions of loan books and transfers of banking & insurance business under Part 7 of FSMA
- Retail banking, new product development and compliance
- Outsourcing arrangements including business process outsourcing and technology outsourcing
- Employment issues and employee benefits strategies
We have particular expertise in work around the Banking Act and predecessor legislation having acted in two of four UK deposit book acquisitions and team members being principal draftsmen in respect of subordinate legislation in respect of bank insolvencies or administration in Scotland.
To read our chapter which was included in the 2015 edition of The International Comparative Legal Guide to Securitisation (published by Global Legal Group Ltd), please click here.