UK: Financial Regulatory Developments Focus – Nov 15, 2018 Issue 45/2018

AML/CTF, Sanctions and Insider Trading

Draft EU Guidelines on Supervisory Cooperation on Anti-Money Laundering and Countering the Financing of Terrorism

On November 8, 2018, the Joint Committee of the European Supervisory Authorities launched a consultation on draft joint guidelines on the cooperation and information exchange between national regulators supervising banks and other financial institutions for compliance with Anti-Money Laundering and Countering the Financing of Terrorism rules. The Fourth Money Laundering Directive requires that EU member states allow, without undue restriction, the exchange of information and provision of assistance between national regulators. The ESA's proposed guidelines aim to set out how that can be achieved in practice. The ESAs are proposing that a college of supervisors should be established where a financial institution is supervised in three or more EU member states. The draft guidelines set out rules on the establishment and operation of the colleges. For firms that do not require a college but which operate in two member states, the ESAs propose a process for the bilateral exchange of information between national regulators.

The consultation closes on February 8, 2019.

The consultation paper is available at: http://www.eba.europa.eu/documents/10180/2440050/Consultation+Paper+on+JC+GLs+on+cooperation+and +information+exchange+for+AML+CFT+supervisory+purposes+.pdf.

Bank Prudential Regulation & Regulatory Capital

EU Legislation Published to Update Supervisory Reporting Requirements

A Commission Implementing Regulation supplementing the Capital Requirements Regulation has been published in the Official Journal of the European Union. The Implementing Regulation amends the existing Implementing Regulation ((EU) No 680/2014) to reflect the gradual supplementation and amendment of elements of the CRR reporting requirements by the adoption of further Regulatory Technical Standards. The Amending Regulation was adopted by the European Commission on October 9, 2018. It amends the existing Implementing Regulation to set out:

  1. additional requirements relating to prudent valuation adjustments of fair-valued positions;
  2. additional requirements to accommodate the reporting on securitization positions subject to the revised securitization framework; and
  3. minor changes to the reporting requirements on the geographical distribution of exposures

The Amending Regulation will enter into force on November 29, 2018 and will apply directly across the EU from December 1, 2018.

The Commission Implementing Regulation (EU) 2018/1627 is available at: https://eur-lex.europa.eu/legalcontent/EN/TXT/PDF/?uri=CELEX:32018R1627&from=EN.

Brexit for Financial Services

Statement by EU Supervisory Authority Confirms No EU Transitional Measures for UK Credit Rating Agencies and Trade Repositories on a Hard Brexit

On November 9, 2018, the European Securities and Markets Authority issued a public statement urging customers of credit rating agencies and trade repositories to prepare for a "no deal" Brexit. The European Market Infrastructure Regulation requires derivatives subject to the reporting obligation to be reported to either a registered trade repository established in the EU or a recognized third-country trade repository. The CRA Regulation provides that banks, investment firms, insurers, reinsurers, management companies, investment companies, alternative investment fund managers and CCPs may only use credit ratings for certain regulatory purposes if a rating is issued by: (i) an EU CRA registered with ESMA; or (ii) a third-country CRA under the endorsement regime or the equivalence/certification regime. Without the EU putting in place a temporary regime (as the U.K. is doing), U.K. CRAs and trade repositories will lose their EU registration when the U.K. leaves the EU on a "hard Brexit." ESMA reiterates that all market participants must ensure that they continue to comply with their obligations under EMIR, the CRA Regulation and other EU legislation and should monitor the Brexit-related public statements issued by CRAs and trade repositories.

ESMA's statement confirms that U.K. CRAs and trade repositories are implementing contingency plans in preparation for a "no deal" Brexit. However, further action is needed. ESMA is evaluating several applications submitted by both CRAs and trade repositories and states that it intends to start negotiations with the U.K. Financial Conduct Authority to ensure that the requisite arrangements for information exchange are in place by March 29, 2019.

In preparation for a "no deal" Brexit, the U.K. is establishing (i) a conversion regime for U.K. and third-country CRAs and trade repositories currently registered or certified by ESMA; and (ii) a temporary registration regime for newly established U.K. entities that are part of a group of CRAs or trade repositories with an existing ESMA registration before exit day.

The statement is available at: https://www.esma.europa.eu/press-news/esma-news/esma-asks-clients-creditrating-agencies-and-trade-repositories-prepare-no-deal, details of the U.K.'s Brexit preparations for CRAs and trade repositories are available at: https://finreg.shearman.com/UK-Plans-Transitional-Regime-for-CreditRatings-f and https://finreg.shearman.com/draft-uk-post-brexit-legislation-to-onshore-trade and details of the FCA's statement on the U.K. preparations are available at: https://finreg.shearman.com/uk-regulatorprovides-information-on-brexit-proce.

Proposed Exemption From the EU Clearing Obligation for OTC Derivatives Novated to EU Counterparties in Preparation for a 'No Deal' Brexit

On November 8, 2018, ESMA proposed the introduction of a 12-month exemption from the clearing obligation to facilitate the novation of uncleared OTC derivative contracts to EU counterparties in the event of a "no deal" Brexit. EMIR imposes a clearing obligation on EU firms that are counterparties to certain OTC derivatives contracts. The clearing obligation applies to Interest Rate Swaps denominated in seven currencies (EUR, GBP, JPY, USD, NOK, PLN and SEK) and to two classes of credit default swap indices (iTraxx Europe Main and iTraxx Europe Crossover). The obligation to clear OTC IRS denominated in all seven currencies is in force for clearing members of EU CCPs as well as large financial counterparties and alternative investment funds. The IRS clearing obligation for IRS denominated in the G4 currencies will apply to small financial counterparties and AIFs from June 21, 2019 and to non-financial counterparties from December 21, 2018, and for IRS denominated in CZK, DKK, HUF, NOK, SEK and PLN, from August 9, 2018. The CDS clearing obligation is in force only for clearing members of EU CCPs. The CDS clearing obligation for large financial counterparties, AIFs and NFCs will apply from August 9, 2019. It will apply to small financial counterparties and AIFs from June 21, 2019.

On Brexit, U.K. firms will lose the passports which enable them to provide certain services across the EU. If the EU and the U.K. fail to reach an agreement on the U.K.'s exit from the EU, U.K. firms may be unable to perform some of the operations for their derivatives contracts with EU clients. In preparation for this eventuality, firms may want to novate these contracts to entities that are established and authorized in an EU27 member state. However, novation of an OTC derivatives contract may trigger the clearing obligation and result in unexpected taxes or costs to the firms (arising from an event over which they have no control). ESMA considers that this situation gives rise to a disincentive for firms to transfer contracts from U.K. firms to EU firms and would result in an unlevel playing field between EU firms.

To address this, ESMA is proposing to amend the RTS made under EMIR that establish the clearing obligation to introduce a time-limited exemption from the clearing obligation. This would apply for bilateral OTC derivatives contracts that have either not yet become subject to the clearing obligation or have not been novated after a clearing obligation has arisen. The exemption would only apply to a novation to a new EU counterparty and would not apply to other life-cycle events performed by the parties to a derivatives contract. The exemption would be available for a period of 12 months following the U.K.'s exit from the EU. ESMA's view is that this should provide firms with sufficient time to negotiate any novation and for repapering that needs to be completed. ESMA encourages market participants to begin their preparations immediately. The exemption will not come into effect if the EU and U.K. agree the terms of the U.K.'s exit and the withdrawal agreement has entered into force and will not apply if the EU and the U.K. agree to extend the two-year negotiation period under the terms of the Treaty on European Union.

ESMA has submitted to the European Commission proposed amendments to the following three RTS to give effect to the proposed exemption:

  1. RTS on the clearing obligation for IRS denominated in G4 currencies (RTS 2015/2205);
  2. RTS on the clearing obligation for CDS (RTS 2015/592); and
  3. RTS on the clearing obligation for IRS denominated in certain other currencies (RTS 2016/1178)

ESMA's report is available at: https://www.esma.europa.eu/sites/default/files/library/esma70-151- 1854_final_report_on_the_co_regarding_novated_trades_to_the_eu.pdf.

UK Financial Regulators Issue Directions for Post-Brexit Temporary Permissions Regime

The FCA and the Prudential Regulation Authority issued Directions detailing how an EEA firm currently passporting into the U.K. should notify each of the regulators of the firm's intention to benefit from the Temporary Permissions Regime in the event of a "no deal" Brexit. The Direction was made under the EEA Passport Rights (Amendment, etc., and Transitional Provisions) (EU Exit) Regulations 2018 (made on November 6, 2018). The Regulations provide for a Temporary Permissions Regime for firms that are currently authorized to carry on a regulated activity in the U.K. under an EEA passporting right that have either applied for U.K. authorization prior to the U.K. withdrawal date or have notified the relevant U.K. regulator of their intention to continue carrying on passported activities. Temporary permissions would deem firms within the regime as authorized for their current activities for a maximum of three years, subject to a power for HM Treasury to extend the regime's duration by increments of 12 months.

Both the PRA and the FCA are requiring firms to submit the Temporary Permission Notification Form using Connect between January 7, 2019 and March 28, 2019.

The FCA's Direction is available at: https://www.fca.org.uk/publication/handbook/temporary-permissionnotification-direction.pdf, the PRA's Direction is available at: https://www.bankofengland.co.uk/- /media/boe/files/eu-withdrawal/pra-direction-temporary-permission-and-variation-notification-before-exitday.pdf and the EEA Passport Rights Regulations 2018 are available at: http://www.legislation.gov.uk/uksi/2018/1149/pdfs/uksi_20181149_en.pdf.

UK Legislation Published for Brexit on Bank of England's Functions

On November 7, 2018, HM Treasury laid before Parliament the draft Bank of England (Amendment) (EU Exit) Regulations 2018, together with a draft explanatory memorandum.

The draft Regulations make amendments to the Bank of England Act 1998, the Financial Services Act 2012 and related secondary legislation to ensure that the constitution, responsibilities and functions of the Bank of England continue to be clearly defined after exit day, including in a "no deal" scenario. In the explanatory memorandum accompanying the draft Regulations, HM Treasury confirms that the draft Regulations make only technical changes to existing legislation to ensure that it continues to operate effectively once the U.K. leaves the EU. This includes amendments to information sharing and notification requirements and amendments to certain definitions so that they work in the U.K. after exit day. Amendments to secondary legislation include necessary adjustments to provisions on capital buffers and amounts of cash ratio deposits that certain financial services firms must hold with the BoE

The Regulations will enter into force on exit day (that is, March 29, 2019 in a "no deal" scenario, or at a later date if there is a negotiated EU-U.K. Withdrawal Agreement).

The draft Regulations are available at: https://assets.publishing.service.gov.uk/media/5be2c51140f0b667a46ce02f/Bank_of_England_Amendment_r egs.pdf and the draft explanatory memorandum is available at: https://assets.publishing.service.gov.uk/media/5be2c57440f0b667a46ce030/EM_- _Bank_of_England_amendment_regs.pdf.

Bank of England Provides Further Guidance on Settlement Finality Designation Post-Brexit

On 6 November, 2018, the BoE published the "Dear CEO" letter that it has sent to the Chief Executive Officers of EU CCPs, central securities depositaries and payment systems that are currently designated under the EU Settlement Finality Directive. The designation of these systems is automatically recognized in the U.K. under the SFD framework for automatic recognition, but the U.K. will fall outside the EU framework upon Brexit.

The "Dear CEO" letter follows an earlier letter issued by the BoE in July 2018 and the publication, by HM Treasury, of a draft of the Financial Markets and Insolvency (Amendment and Transitional Provision) (EU Exit) Regulations 2018 on October 31, 2018. The draft Regulations will, once in force, empower the BoE to grant permanent designation to non-U.K. (including EU) systems that are not governed by U.K. law. They also establish a temporary designation regime for EU systems that are currently designated under the SFD.

In the letter, the BoE sets out further details of the permanent designation of non-U.K. systems post-Brexit. It also sets out how EU systems can go about applying to enter the temporary designation regime in a "no deal" scenario (where the U.K. exits the EU without a ratified Withdrawal Agreement) in order to continue to benefit from U.K. SFD protection until the permanent designation process is complete.

Permanent designation of non-UK systems

SFD designation, and the U.K. Settlement Finality Regulations, are currently only available to persons established in the EU where at least part of the system's rulebook is EU law-governed. In the future, U.K. settlement finality protection will in principle be available to any non-U.K. system, regardless of its governing law and wherever its participants are established. Designation of systems by the BoE, and the requirements that designated systems will need to comply with, will be broadly similar to the procedures and requirements currently applying to U.K. law-governed systems, subject to this internationalization.

Details of the application requirements for permanent designation are set out in the U.K. Settlement Finality Regulations, as amended by the draft Regulations.

Systems that will need UK SFD designation post-Brexit

It will not be a U.K. legal requirement for non-U.K. systems to obtain U.K. SFD designation in order to have U.K. participants. However, the BoE expects that EU systems may wish to apply for U.K. SFD designation where they have a participant or participants established in the U.K. or have a U.K.-established indirect participant or participants that fall within the meaning of participants set out in the SFD. This is because designation confers various important carve-outs from U.K. insolvency laws for designated systems that are likely to be of benefit to any system with U.K. participants. However, the regime will not be mandatory.

The temporary designation regime

EU systems wishing to benefit from the temporary regime in the event of a "no deal" scenario must notify the BoE ahead of Brexit. The draft Regulations establishing the regime have been published in draft form but are not yet approved by Parliament. In the letter, the BoE invites EU systems that wish to benefit from the temporary designation regime to indicate their intention to the BoE ahead of the draft Regulations coming into force. The BoE will treat such early notification by EU systems as formal notification under the new Regulations once they enter into force. The BoE stresses in the letter that it cannot treat responses to its previous "Dear CEO" letter in July as such a formal notification.

The temporary regime will allow U.K. settlement finality protection for EU systems for three years following exit day. However, if an EU system wishes to seek permanent designation, it must make an application within the six-month period following exit day.

Existing U.K. designated systems will simply continue to be designated in the U.K. without the need for any more. Such entities will face greater issues in terms of the risks of doing business with EU participants in future, since their U.K. designation would cease to have effect in the EU after Brexit and the EU has no thirdcountry regime in place for SFD purposes.

Non-EU systems that have no present U.K. settlement finality designation and wish to take advantage of the U.K.'s new third-country regime would have to submit a new application for U.K. SFD designation separately but would not be able to use the temporary designation regime.

The "Dear CEO" letter is available at: https://www.bankofengland.co.uk/-/media/boe/files/letter/2018/followup-letter-to-eu-systems-designed-under-the-settlement-finality-directive.pdf, the "Dear CEO" July 2018 letter is available at: https://www.bankofengland.co.uk/-/media/boe/files/letter/2018/letter-to-eu-systemsdesignated-under-the-settlement-finality-directive.pdf, details of the Financial Markets and Insolvency (Amendment and Transitional Provision) (EU Exit) Regulations 2018 are available at: https://finreg.shearman.com/UK-Legislation-Published-to-Preserve-Settlement-F and ESMA's current list of EU systems designated under the SFD is available at: https://www.esma.europa.eu/system/files_force/library/designated_payment_and_securities_settlement_sys tems.pdf.

Brexit Legislation Published Establishing a Temporary Permissions Regime for EEA Firms Passporting into the UK

On November 6, 2018, the EEA Passport Rights (Amendment, etc., and Transitional Provisions) (EU Exit) Regulations 2018 were made on November 6, 2018. The Regulations provide, among other things, for a Temporary Permissions Regime for firms that are currently authorized to carry on a regulated activity in the U.K. under an EEA passporting right that have either applied for U.K. authorization prior to the U.K. withdrawal date or have notified the relevant U.K. regulator of their intention to continue carrying on passported activities. The Regulations come into force on November 7, 2018 except for the following provisions, which come into force on exit day:

  1. Regulation 2 (Repeal of passport rights, etc);
  2. Regulation 3 (Consequential amendments);
  3. Regulation 4 (Saving provision: tax); and
  4. Regulation 24 (Financial Services Compensation Scheme - modifications of Part 15 of the Financial Services and Markets Act 2000).

The EEA Passport Rights Regulations 2018 are available at: http://www.legislation.gov.uk/uksi/2018/1149/pdfs/uksi_20181149_en.pdf and details of the draft regulations are available at: https://finreg.shearman.com/uk-secondary-legislation-published-for-post-brexi.

Consumer Protection

EU Supervisory Authority Will Extend Binary Options Ban Into 2019

On November 9, 2018, ESMA announced that it proposes to renew the prohibition on the marketing, distribution or sale of binary options to retail clients for a further three months from January 2, 2019. ESMA's product intervention powers under the Markets in Financial Instruments Regulation allow it to impose temporary prohibitions or restrictions on certain financial instruments, financial activities or practices to address a significant investor protection concern in the EU. ESMA is renewing the prohibition on binary options because it considers that a significant investor protection concern remains. The measure will be renewed on the same terms as the previous renewal decision that has applied from October 2, 2018 and that will expire on January 1, 2019.

ESMA's Board of Supervisors agreed on the renewal of intervention measures on November 7, 2018. ESMA will publish an official notice on its website in the coming weeks. The new Decision will then be published in the Official Journal of the European Union and will start to apply from January 2, 2019 for a period of three months.

ESMA's announcement is available at: ESMA's announcement is available at: https://www.esma.europa.eu/sites/default/files/library/esma71-99- 1057_-_esma_renews_binary_options_prohibition_for_a_further_three_months_from_2_january_2019.pdf and details of the prohibition expiring on January 1, 2019 are available at: https://finreg.shearman.com/EUBan-Relating-to-Binary-Options-Extended.

Enforcement

UK Prudential Regulator Fines Senior Managers for Failing to be Open and Cooperative

On November 7, 2018, the PRA announced that it has imposed financial penalties on two senior managers for failing to be open and cooperative about an enforcement action into the U.K. subsidiary of a Japanese bank by the New York Department of Financial Services in 2014. The PRA's enforcement action follows the financial penalties that it imposed in 2017 on this entity and an affiliate for breaching Fundamental Rules 6 and 7 of the PRA Rulebook in that the firms had (i) failed to communicate relevant information about the settlement with the DFS; and (ii) failed to inform the PRA of the potential implications of the DFS matter for certain senior managers.

The latest fines have been imposed on the former Chair and a former Non-Executive Director for failing to inform the PRA that a senior manager might be restricted from conducting U.S. banking activities as a result of the action by the DFS. The PRA only learnt about the issue after publication of the DFS consent order. This meant that the PRA could not assess the implications or supervise any contingency planning.

The PRA's announcement notes that under the Senior Managers Regime, the current Senior Manager Conduct Rule 4 requires senior managers to disclose appropriately any information of which the PRA or FCA would reasonably expect notice.

The U.S. DFS treats its potential enforcement actions as confidential supervisory information. A firm or individual that wishes to share that information, including with another regulator, must first obtain the permission of the DFS. The DFS will often require a confidentiality agreement from the home country regulator before it allows the disclosure. The result is that firms and individuals can become subject to conflicting requirements.

The PRA's announcement and the final notices are available at: https://www.bankofengland.co.uk/news/2018/november/pra-imposes-financial-penalty-on-akira-kamiyatakami-onodera-for-failure-to-disclose-information, the DFS consent order is available at: https://www.dfs.ny.gov/about/ea/ea141118.pdf and details of the PRA's action against the firm are available at: https://finreg.shearman.com/uk-regulator-takes-enforcement-action-against-fir.

Funds

EU Proposals Aim to Avoid Duplicative Information Requirements on Investment Managers

On November 8, 2018, the ESAs launched a consultation on amendments to the Key Information Document for Packaged Retail and Insurance-based Investment Products. Since January 1, 2018, the EU PRIIPs Regulation has required manufacturers of PRIIPs to prepare and publish a stand-alone, standardized Key Information Document for each of their PRIIPs. Those advising retail investors on PRIIPs, or selling PRIIPs to retail investors, must provide retail investors with a KID in good time before the transaction is concluded.

The PRIIPs Regulation exempts until December 31, 2019 management and investment companies and persons advising on or selling Undertakings for Collective Investment in Transferable Securities from the obligation to produce and provide a PRIIPs KID. The UCITS Directive requires these entities to provide investors with a Key Investor Information Document. As a result, if there were no changes made to the EU legislation, UCITS would be subject to duplicative information requirements from January 1, 2020. To address this situation, the ESAs are proposing to amend the RTS under the PRIIPs Regulation by moving the UCITS KIID requirements to the PRIIPs RTS.

The ESAs are also proposing certain other targeted amendments to the PRIIPs KID requirements. These changes include, among other things, requiring PRIIP manufacturers to include information on past performance in the KID, amending the narrative explanations for performance scenarios, requiring the use of the risk-free rate of return instead of historical prices and requiring the presentation of future performance scenarios as a range either in tabular or graphical format.

The consultation closes on December 6, 2018. It is proposed that the amendments will apply from January 1, 2020. To allow time for the EU legislative process to conclude and to provide PRIIP manufacturers and sellers with at least six months to implement the changes, the ESAs intend to submit the final draft RTS to the European Commission for endorsement in January 2019.

The ESAs confirm that the review of the effects of the PRIIPs framework has been delayed by the European Commission so that further evidence and data can be collected to assist the review. It is likely that further amendments to the PRIIPs Regulation will emerge from that more in-depth review.

The consultation paper is available at: https://eiopa.europa.eu/Publications/Consultations/Joint%20Consultation%20Paper%20on%20targeted%20a mendments.pdf.

To read the full article click here

The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.

To print this article, all you need is to be registered on Mondaq.com.

Click to Login as an existing user or Register so you can print this article.

Authors
Similar Articles
Relevancy Powered by MondaqAI
 
In association with
Related Topics
 
Similar Articles
Relevancy Powered by MondaqAI
Related Articles
 
Related Video
Up-coming Events Search
Tools
Print
Font Size:
Translation
Channels
Mondaq on Twitter
 
Register for Access and our Free Biweekly Alert for
This service is completely free. Access 250,000 archived articles from 100+ countries and get a personalised email twice a week covering developments (and yes, our lawyers like to think you’ve read our Disclaimer).
 
Email Address
Company Name
Password
Confirm Password
Position
Mondaq Topics -- Select your Interests
 Accounting
 Anti-trust
 Commercial
 Compliance
 Consumer
 Criminal
 Employment
 Energy
 Environment
 Family
 Finance
 Government
 Healthcare
 Immigration
 Insolvency
 Insurance
 International
 IP
 Law Performance
 Law Practice
 Litigation
 Media & IT
 Privacy
 Real Estate
 Strategy
 Tax
 Technology
 Transport
 Wealth Mgt
Regions
Africa
Asia
Asia Pacific
Australasia
Canada
Caribbean
Europe
European Union
Latin America
Middle East
U.K.
United States
Worldwide Updates
Registration (you must scroll down to set your data preferences)

Mondaq Ltd requires you to register and provide information that personally identifies you, including your content preferences, for three primary purposes (full details of Mondaq’s use of your personal data can be found in our Privacy and Cookies Notice):

  • To allow you to personalize the Mondaq websites you are visiting to show content ("Content") relevant to your interests.
  • To enable features such as password reminder, news alerts, email a colleague, and linking from Mondaq (and its affiliate sites) to your website.
  • To produce demographic feedback for our content providers ("Contributors") who contribute Content for free for your use.

Mondaq hopes that our registered users will support us in maintaining our free to view business model by consenting to our use of your personal data as described below.

Mondaq has a "free to view" business model. Our services are paid for by Contributors in exchange for Mondaq providing them with access to information about who accesses their content. Once personal data is transferred to our Contributors they become a data controller of this personal data. They use it to measure the response that their articles are receiving, as a form of market research. They may also use it to provide Mondaq users with information about their products and services.

Details of each Contributor to which your personal data will be transferred is clearly stated within the Content that you access. For full details of how this Contributor will use your personal data, you should review the Contributor’s own Privacy Notice.

Please indicate your preference below:

Yes, I am happy to support Mondaq in maintaining its free to view business model by agreeing to allow Mondaq to share my personal data with Contributors whose Content I access
No, I do not want Mondaq to share my personal data with Contributors

Also please let us know whether you are happy to receive communications promoting products and services offered by Mondaq:

Yes, I am happy to received promotional communications from Mondaq
No, please do not send me promotional communications from Mondaq
Terms & Conditions

Mondaq.com (the Website) is owned and managed by Mondaq Ltd (Mondaq). Mondaq grants you a non-exclusive, revocable licence to access the Website and associated services, such as the Mondaq News Alerts (Services), subject to and in consideration of your compliance with the following terms and conditions of use (Terms). Your use of the Website and/or Services constitutes your agreement to the Terms. Mondaq may terminate your use of the Website and Services if you are in breach of these Terms or if Mondaq decides to terminate the licence granted hereunder for any reason whatsoever.

Use of www.mondaq.com

To Use Mondaq.com you must be: eighteen (18) years old or over; legally capable of entering into binding contracts; and not in any way prohibited by the applicable law to enter into these Terms in the jurisdiction which you are currently located.

You may use the Website as an unregistered user, however, you are required to register as a user if you wish to read the full text of the Content or to receive the Services.

You may not modify, publish, transmit, transfer or sell, reproduce, create derivative works from, distribute, perform, link, display, or in any way exploit any of the Content, in whole or in part, except as expressly permitted in these Terms or with the prior written consent of Mondaq. You may not use electronic or other means to extract details or information from the Content. Nor shall you extract information about users or Contributors in order to offer them any services or products.

In your use of the Website and/or Services you shall: comply with all applicable laws, regulations, directives and legislations which apply to your Use of the Website and/or Services in whatever country you are physically located including without limitation any and all consumer law, export control laws and regulations; provide to us true, correct and accurate information and promptly inform us in the event that any information that you have provided to us changes or becomes inaccurate; notify Mondaq immediately of any circumstances where you have reason to believe that any Intellectual Property Rights or any other rights of any third party may have been infringed; co-operate with reasonable security or other checks or requests for information made by Mondaq from time to time; and at all times be fully liable for the breach of any of these Terms by a third party using your login details to access the Website and/or Services

however, you shall not: do anything likely to impair, interfere with or damage or cause harm or distress to any persons, or the network; do anything that will infringe any Intellectual Property Rights or other rights of Mondaq or any third party; or use the Website, Services and/or Content otherwise than in accordance with these Terms; use any trade marks or service marks of Mondaq or the Contributors, or do anything which may be seen to take unfair advantage of the reputation and goodwill of Mondaq or the Contributors, or the Website, Services and/or Content.

Mondaq reserves the right, in its sole discretion, to take any action that it deems necessary and appropriate in the event it considers that there is a breach or threatened breach of the Terms.

Mondaq’s Rights and Obligations

Unless otherwise expressly set out to the contrary, nothing in these Terms shall serve to transfer from Mondaq to you, any Intellectual Property Rights owned by and/or licensed to Mondaq and all rights, title and interest in and to such Intellectual Property Rights will remain exclusively with Mondaq and/or its licensors.

Mondaq shall use its reasonable endeavours to make the Website and Services available to you at all times, but we cannot guarantee an uninterrupted and fault free service.

Mondaq reserves the right to make changes to the services and/or the Website or part thereof, from time to time, and we may add, remove, modify and/or vary any elements of features and functionalities of the Website or the services.

Mondaq also reserves the right from time to time to monitor your Use of the Website and/or services.

Disclaimer

The Content is general information only. It is not intended to constitute legal advice or seek to be the complete and comprehensive statement of the law, nor is it intended to address your specific requirements or provide advice on which reliance should be placed. Mondaq and/or its Contributors and other suppliers make no representations about the suitability of the information contained in the Content for any purpose. All Content provided "as is" without warranty of any kind. Mondaq and/or its Contributors and other suppliers hereby exclude and disclaim all representations, warranties or guarantees with regard to the Content, including all implied warranties and conditions of merchantability, fitness for a particular purpose, title and non-infringement. To the maximum extent permitted by law, Mondaq expressly excludes all representations, warranties, obligations, and liabilities arising out of or in connection with all Content. In no event shall Mondaq and/or its respective suppliers be liable for any special, indirect or consequential damages or any damages whatsoever resulting from loss of use, data or profits, whether in an action of contract, negligence or other tortious action, arising out of or in connection with the use of the Content or performance of Mondaq’s Services.

General

Mondaq may alter or amend these Terms by amending them on the Website. By continuing to Use the Services and/or the Website after such amendment, you will be deemed to have accepted any amendment to these Terms.

These Terms shall be governed by and construed in accordance with the laws of England and Wales and you irrevocably submit to the exclusive jurisdiction of the courts of England and Wales to settle any dispute which may arise out of or in connection with these Terms. If you live outside the United Kingdom, English law shall apply only to the extent that English law shall not deprive you of any legal protection accorded in accordance with the law of the place where you are habitually resident ("Local Law"). In the event English law deprives you of any legal protection which is accorded to you under Local Law, then these terms shall be governed by Local Law and any dispute or claim arising out of or in connection with these Terms shall be subject to the non-exclusive jurisdiction of the courts where you are habitually resident.

You may print and keep a copy of these Terms, which form the entire agreement between you and Mondaq and supersede any other communications or advertising in respect of the Service and/or the Website.

No delay in exercising or non-exercise by you and/or Mondaq of any of its rights under or in connection with these Terms shall operate as a waiver or release of each of your or Mondaq’s right. Rather, any such waiver or release must be specifically granted in writing signed by the party granting it.

If any part of these Terms is held unenforceable, that part shall be enforced to the maximum extent permissible so as to give effect to the intent of the parties, and the Terms shall continue in full force and effect.

Mondaq shall not incur any liability to you on account of any loss or damage resulting from any delay or failure to perform all or any part of these Terms if such delay or failure is caused, in whole or in part, by events, occurrences, or causes beyond the control of Mondaq. Such events, occurrences or causes will include, without limitation, acts of God, strikes, lockouts, server and network failure, riots, acts of war, earthquakes, fire and explosions.

By clicking Register you state you have read and agree to our Terms and Conditions