The LMA welcomes the decision of the BoE to include loans, which meet certain criteria, as eligible security in the DWF and sees it as a significant initiative in improving liquidity and reducing risk in the financial system. The LMA has argued for the inclusion of loans as eligible collateral for central bank liquidity facilities for some time and responded to the BoE's recent consultation paper on this matter. The LMA response followed a consultation with its own members as to the likely demand for including loans as collateral. Click here to view the press release.
These are Multilateral Netting Agreement, Bilateral Netting Agreement, Multilateral Termination and Transfer Agreement, Bilateral Termination and Transfer Agreement, and Termination Agreement.
The Secondary Trading Users Guide has been updated to include reference to the new documents. We have also published a brief explanatory note on why the LMA does not feel it necessary to publish an LMA Proceeds Letter. To view all documents, please click here.
The LMA has for some years been in discussions with the UK Revenue about how the procedures for approving withholding tax relief to treaty lenders might be improved. The HMRC's latest proposals for the HMRC DT Treaty Passport Scheme go a long way towards the passport scheme which the LMA had suggested to the Revenue.
To view lists of FAQ's produced by HMRC and Clifford Chance, and a link to the UK Revenue's scheme guidance and passport application, please click here.
The LMA has produced a guidance note for use when negotiating Release and Reliance Letters with report providers, including accountancy firms. A simple template form of these letters has also been produced for use by report providers who do not routinely use their own prescribed forms. We hope that the guidance note will be helpful in making the process of negotiating these documents quicker and more efficient.
To view the guidance note and letter templates, please click here.
The July 2010 edition of LMA News, the LMA's 6 monthly publication for its members, is now out. To receive a hard copy please email melanie.hutchings@lma.eu.com, or alternatively click here to read the newsletter online. Contributors include Julian van Kan – BNP Paribas, Karen Moreland – SGCIB, Trevor Williams – Lloyds Banking Group and Martin O'Donovan – ACT.
The LMA has posted revised versions of the Coordinating Committee Letters. To view the amended documents, please click here.