Review of Legal and Regulatory Context in Asset Recycling
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Conducting due diligence with respect to the legal and regulatory context requires a review of the laws, regulations and policies affecting the Relevant Authority and the asset. Areas covered may include: identification of relevant sector-based and general laws and regulations, including any regional regulations governing the asset's location. summaries of identified laws and regulations. identification and summary of any planned legal or regulatory changes (based on engagement with relevant stakeholders). Legal and regulatory context typically places constraints on how the asset and related asset recycling transaction can be structured and implemented. Legal due diligence should identify these constraints and, in some cases, identify whether a change in regulation is required to facilitate the desired transaction. The review of legal and regulatory context and legal due diligence should be carried out concurrently. Note that, in some cases, resources regarding legal and regulatory context may have been prepared prior to the legal due diligence being commenced. This may need to be revisited, however, if significant time has passed since this review of the legal and regulatory context has been prepared, or major changes in law or regulation have occurred.
Useful Links
The Guidelines have not been prepared with any specific transaction in mind and are meant to serve only as general guidance. It is therefore critical that the Guidelines be reviewed and adapted for specific transactions To find more, visit the Guidelines to Implementing Asset Recycling Transactions Section Overview and Content Outline, or Download the Full Report.
Updated: June 15, 2023