The ICC Banking Commission Technical Meeting took place in Rome from 7-9 November, 2016. Your voice from the ground floor, DCW will be filtering through the information from the meeting to bring you key takeaways in the upcoming Nov/Dec double issue.
Notes from ICC Banking Commission Technical Meeting:
- 182 participants from 43 countries attended the Banking Commission Technical Meeting in its first time in Rome. The ICC Banking Commission Chair could not attend, nor could 3 other chairs of working groups.
- Participants were provided paper copies of the ICC’s just-released “2016 Rethinking Trade & Finance”. At 180 pages, this annual study analysing developments in trade and trade finance grows larger each year.
- ICC Trade Register – a report produced annually since 2009 – will be launched 8 Dec 2016.
- ICC’s cross-industry initiative to formulate Standard Definitions for Supply Chain Finance techniques has had a good response, but not much interaction. Attendees were informed that a website of Q&A of for Supply Chain Finance techniques is under construction.
Promises and Issues Left Unresolved:
There are several reasons why the Bail-In measures under Article 55 of the EU Bank Recovery and Resolution Directive threaten trade. Initial attempts to exempt trade finance were not well-received, however optimism was expressed in Rome. Although not a hard promise, it likely there will be news of an amendment to Art. 55 sometime in 2017.
In an effort to spur use of arbitration on a broader scale, ICC has announced a new set of expedited rules. Speakers emphasized “creature of contract” nature of arbitration – parties must agree to it and what type is desired.
Discussion of electronic bills of lading dominated in the Q&A period at close of day 1 morning session. Will there be a legal opinion on the eB/L? Not anytime soon. Also, legal opinions from multiple jurisdictions will be necessary. Without legal certainty of the eB/L, banks need to decide on their own what form is best.