Money makes the world go round
Nowhere is this popular adage more applicable than practicing law in the banking and finance domain. This practice area encompasses everything from providing a loan to an individual to complex financial transactions for large corporations.
Banking and finance is a global leviathan; its tentacles are spread over multiple jurisdictions and, with new products frequently being offered, this is an area that can only get bigger. As a banking and finance lawyer, you can look forward to long working hours, dealing with tonnes of paperwork, heaps of travel, and getting to grips with the law in multiple jurisdictions.
What is involved in banking and finance law?
This is an area where some level of specialisation is required; there are much too many variables for a solicitor to handle as a generalist. As a lawyer in this profession, you will either represent the borrower or the lender, and it will be your responsibility to guarantee that all necessary paperwork is completed and that your client’s interests are completely safeguarded.
Transactional work makes up a large part of the banking and financial industry. You’ll finish your half of the deal and move on to the next one. When there are disagreements, it is required to return to a completed transaction. The problematic aspect of a banking and finance lawyer’s work is this. You can opt to specialise in a specific type of financing as a lawyer in this subject. Projects, acquisitions, assets, property, securitization, derivatives, capital markets, and Islamic finance are examples of these.
Project finance usually entails issuing loans for various initiatives, whereas acquisition financing entails lending money to firms in order for them to buy other enterprises. Asset finance, like loan financing, deals with the purchase or lease of big-ticket items. Securitization refers to operations in which a lender sells its loan portfolio to another entity, whereas derivatives are concerned with currency rate setting during a transaction. Capital markets are where a borrowing business sells bonds to investors, and Islamic finance, which involves transactions or loans that follow Shariah standards, is another big industry.
What makes a good banking and finance lawyer?
A lawyer will be necessary to assist with negotiations, deal structuring, and due diligence checks on other parties across all channels and segments of finance (usually the borrowing entity).
You’ll also serve as a mediator between parties, assisting everyone in reaching mutually acceptable agreements. Throughout this, you must ensure that the transaction complies with all applicable rules and regulations in the jurisdictions involved, as well as complete formalities such as registration.