Brexit-driven governing law threats fail to materialise

Author: Lizzie Meager | Published: 11 Feb 2020

English law remains the top choice for financial contracts despite earlier concerns about its popularity continuing owing to Brexit uncertainty – although there has been a small number of outliers.

A London-based head of loans at a major global bank told IFLR that the majority of issuers and investors continue to favour English law in most cases. "On the whole, if an issuer wants to do a deal above a certain threshold – even if the company is not English – it will use English law," he said. "I wouldn’t say Brexit has really had an impact at all. The considerations are the same as they have always been."

English law has long been the popular choice for loan contracts owing to its relative freedom of contract, creditor-friendly nature, and the reputation of the local courts.

There are, however, many reasons why an issuer may opt for the law of another jurisdiction....