From regulators

On 28 April 2020 the UK Financial Conduct Authority issued an open (“Dear CEO”) letter addressed to banks, reminding them to treat corporates fairly when negotiating debt facilities. The FCA also expressed concerns that some banks may have used their client relationship to exert pressure on their corporate clients to request additional services from their banks linked existing equity mandates. The short letter, dated 28 April, can be found here.

In light of the significant challenges posed by Covid-19, the Basel Committee on Banking Supervision (BCBS) and the International Organization of Securities Commissions (IOSCO) have agreed to extend the deadline for completing the final two implementation phases of the margin requirements for non-centrally cleared derivatives, by one year. With this extension, the final implementation phase will take place on 1 September 2022, at which point covered entities with an aggregate average notional amount (AANA) of non-centrally cleared derivatives greater than €8 billion will be subject to the [initial margin] requirements. As an intermediate step, from 1 September 2021 covered entities with an AANA of non-centrally cleared derivatives greater than €50 billion will be subject to the requirements.

An overview of the Covid Corporate Financing Facility (CCFF).

Update on the implementation of Confirmation of Payee