Basel III/IV and EU capital guidelines and regulations will continue to have an impact on the credit environment, while securitised regulation, ECB-financed lending guidelines, proposed bad debt settlements, Brexit and the European Commission`s study on competition in the credit market will raise other challenges. The LMA will continue to monitor changes in accounting standards that could have a significant impact on the product, as well as other issues such as sanctions and tax rules. The purpose of this document is to provide guidelines for syndicated lending and debt financing transactions, including the types of facilities typically seen in the credit market, parties to a typical loan contract, and common methods used by lenders to transfer equity to loans. The LMA`s main objective is to promote liquidity in the primary and secondary credit markets, which it intends to achieve by promoting efficiency and transparency, introducing generally accepted market practices and developing documentary standards. The LMA cooperates with lenders, law firms, borrowers and regulators to inform the market of the benefits of the syndicated credit product and to remove barriers to entry for new entrants. The LMA continues to work tirelessly to remove barriers to communication in the unionized credit market as a whole by encouraging its climbing matrix and educational forums, including its flagship corporate conference that attracts more than 300 professionals. Maintaining the spotlight on secondary invoices and operations in general is a central strategic objective of the LMA through 2020 and beyond. In response to members` requests to address the problems related to kyC, the LMA has recently done significant work under the MRA. The result was the publication of new JMLSG guidelines, the appointment of JMLSG to the Board of Directors and the strengthening of dialogue with the AML`s supervisory authorities. In 2019, the LMA has obtained approval from the Financial Ministry for LMA revisions for JMLSG Guidance Sector 17.
The revised guidelines include a clear description of primary and secondary syndicated credit markets, an assessment of the risks associated with the review of money laundering and terrorist financing, and the different types of relationships between the parties to a syndicated credit transaction and where this results in a direct relationship with clients between these parties. In 2020, the LMA hopes that its participation in this area will continue to contribute to improving existing market practices, while ensuring that the product remains weak from a money laundering perspective.