French Legal And Regulatory Update - February 2019

CAPITAL MARKETS

France – Preparing for Hard Brexit: what are the measures provided for in the Ordinance of 6 February 2019

Pursuant to the Law of 19 January 2019 allowing the French Government to take by way of ordinance the necessary measures to prepare the withdrawal of the United Kingdom from the European Union, an ordinance on financial services which are applicable only in the event of Hard Brexit has been issued by the French Government on 6 February 2019.

This ordinance provides for several key measures, including:

• the exclusion of the anatocism rule which prohibits the capitalisation of interests due over a period of less than one year for French law master agreements published by the International Swaps Derivatives Association (ISDA) in respect of derivatives;