IBOR Australia

IBOR Australia

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Tom Highnam

Partner

ALLENS

Tom specialises in fund finance, leveraged finance and derivatives.


Tom is recognised as a leading practitioner representing financiers on subscription financing transactions for both domestic and global funds, including Partners Group, Pacific Alliance Group, First State Super, PEP, BGH, IFM, AMP, CHAMP and Next Capital.


In the acquisition finance space, his recent transactions include acting for First State Super on the financing aspects of its acquisition of the Victorian LPI and acting for the banks on Tamar Alliance's acquisition of Nature's Care.


Tom is also known for his expertise in derivatives, acting for the domestic banks and leading investment banks on a range of structured finance transactions involving derivatives and advising a number of ASX 100 companies as end-users.


He is recognised in Chambers Asia Pacific 2015-2019 as a notable practitioner in both Corporate Finance and Acquisition Finance and by Best Lawyers 2019 in Banking and Finance Law, Capital Markets Law and as the leading Lawyer for Derivatives.
 

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Stanley J. Hales

Partner - Transfer Pricing

Deloitte

Stan is a partner and transfer pricing economist in the Deloitte tax practice based in the Sydney Australia office.  With over 20 years of experience, he collaborates with his clients to solve transfer pricing and tax-related valuation problems, with a focus on the financial services industry.  Stan's clients include primarily commercial and investment banks.  A current project involves the tax and transfer pricing ramifications of the IBOR reference rate replacement in customer lending and derivatives arrangements at a multinational commercial bank.  Other clients include real estate investment trusts, investment managers, private equity firms, insurance companies, brokerage firms, trading companies, finance companies, and treasury operations at technology, media and pharmaceutical companies.  The valuation analyses cover loan valuations, diverse inter-company fees, insurance premia, commissions, credit spreads, guarantees and interest rates on loans, as well as royalty modeling and cost-sharing analyses for intangible property, and cost allocation studies. His tax controversy experience includes IRS field exams and appeals proceedings; preparing mutual agreement procedure submissions to revenue authorities such as the IRS, the ATO, and Japanese NTA; preparing rebuttal papers concerning proposed tax adjustments; and negotiating bilateral advanced pricing agreements with revenue authorities. His expert testimony as an economist involved complex loan re-pricing, IP valuation, and royalty analyses, which settled out of court.  Relevant tax treaty experience involves the application of the OECD reports on global trading of financial instruments to the allocation of income to permanent establishments of taxpayers operating global dealing operations in branch form.  Stan taught university-level courses in economics, statistics, money and banking and transfer pricing. He was a doctoral fellow at the Rheinische Friedrich-Wilhelms-Universität Bonn and earned MA and PhD degrees in Economics from The Ohio State University of Columbus, Ohio, USA, with a primary focus on the valuation of foreign currency futures options.  As a husband to his wife Lori for 18 years, in their spare time, they enjoy sailing and mountain biking together.

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Alexander Lord

Director

Deloitte Touche Tohmatsu

Alex is a Director of the Deloitte Global Financial Benchmarks Working Group and has over 15 years’ experience providing professional services to financial services clients both in Australia and globally. In particular he has commercial experience working at a number of large global banks, financial institutions and Australian banks on IBOR Reform.

He has worked across a number of advisory engagements focused on governance and conduct reviews and risk and regulatory advisory. Alex has experience delivering and leading regulatory strategy and change projects. Alex is a leader of our Deloitte Global Financial Benchmarks Team across the UK, EU, US and APAC.

  • Led the development of a financial benchmarks inventory to risk assess, and implement controls for benchmark activity. Led the delivery of Market Conduct Risk and IBOR Reform Projects in Australia and the UK, working across the multiple divisions developing the response to the IBOR discontinuation, impact analysis and regulatory responses as a result of Dear CEO Letters.
  • Alex has led a number of our engagements in relation to IOSCO Principles – Financial Benchmarks focussed gap analysis and implementation, and has helped advise firms on their control framework to embed governance arrangements in responding to regulators concerns.
  • Whilst in London, Alex has led engagements in respect of financial benchmark controls and processes supporting compliance with FCA Market Abuse Regulations, and financial benchmark codes of conducts, which includes the LIBOR submission processes.
  • Alex has lead the design and implementation of a target control framework supporting a Global Tier 1 bank’s administration and contribution to financial benchmarks globally.


Professional and academic qualifications

  • Graduate of Australian Institute of Company Directors (GAICD)
  • Masters of Applied Finance (M App Fin)
  • Member of the Institute of Chartered Accountants Australia (ICAA)
  • Bachelor of Business (Accounting), RMIT
  • Fellow of FINSIA (F Fin) and Committee member - FINSIA Regional Council VIC
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Alastair Harris

Director

Deloitte

Alastair has over 15 years of Financial Market experience, with 5 years in a leadership role within a global investment bank as the regional head of Product Control Valuations, and subsequently as head of Market Risk.

He was recently responsible for leading the system and valuation impact analysis due to LIBOR cessation and benchmark reform for a bank major, aided in establishing the bank’s project plan, and designing the exposure analysis.

He recently delivered a webinar to Finance & Treasury Association on the impact of the LIBOR replacement on Australian Corporates.

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Damien Jones

Partner

Ernst & Young

Damien is a partner in EY’s capital markets advisory team in Sydney, Australia. He has previously worked in the UK and US and has over twenty years’ experience servicing a range of treasury and capital market clients across the globe. He has led a number of engagements at large Australian banks focused on G20 derivative reform, including uncleared margin, trade reporting, and Volcker requirements as well as the MIFID 2 implementation and program management. He is currently part of EY’s global IBOR transition team and co-lead for Asia-Pacific.

He is currently supporting the delivery of a number of IBOR impact assessments and program implementations. He is also acting as an Independent Expert for an Enforceable Undertaking on BBSW.

Damien is a Certified Finance & Treasury Professional of the Finance and Treasury Association (CFTP).

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Andrew Bangura

Director

Ernst & Young

Andrew is an IBOR transition specialist with experience as Engagement Manager across APAC on global benchmark-related programs for both international and Australian banks.

He has led global teams on IBOR replacement projects, as well as large regulatory impact assessments and implementation programs related to MiFID II and OTC derivative reforms. Before joining EY in 2016, Andrew worked at Macquarie Group as a derivatives and equities trader in Sydney and Tokyo respectively. Andrew has a Master of Economics from the University of Sydney and is a Certified Finance & Treasury Professional of the Finance and Treasury Association (CFTP).

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Pieter Bierkens

Group Lead, Interest Rate Benchmark Reform

Commonwealth Bank of Australia

Pieter is Commonwealth Bank of Australia’s Interest Rate Benchmark Reform Lead. In his current capacity he coordinates the Bank’s preparation for the global reform of interest rate benchmarks. His prior role was that of Executive Director – Regulatory Strategy. He has been based in Sydney since 2014.

Previously, Pieter was Head of Markets of Commonwealth Bank in New York. Prior to Commonwealth Bank, he worked for 10 years in New York and London, where he started his career advising institutional investors on global fixed-income markets.

A dual citizen of the US and the Netherlands, Pieter holds a degree in Economics from Erasmus University and a Master degree in International Affairs from Columbia University in New York. He is a Chartered Financial Analyst and holds the Financial Risk Manager designation.

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Yu Zhang

Managing Associate

Allens

Yu is a Managing Associate in the Banking & Finance practice group at Allens. He advises borrowers and lenders on a broad range of finance transactions and global markets issues, including in relation to derivatives and GMRAs. He is currently working with a major Australian bank on its LIBOR transition.
Yu is a regular speaker on behalf of the International Swaps and Derivatives Association, Inc and the Asia Pacific Loan Market Association. He completed his Masters of Law at Cambridge University in 2009 with a focus on private law, and his Masters of Law at Harvard University in 2010 with a concentration in corporate governance and financial regulation.

IBOR Transition to Risk Free Rates

 

Day 1, Tuesday 13 August 2019

08:30

Registration

09:00

Overview of IBOR to risk free rates and benchmark options

  • Context - financial markets affected
  • The wider benchmark reform agenda
  • ARR methodologies / jurisdictions
  • Term structures
  • The challenges of transitioning to ARRs

Peter Bierkins,CBA Group Interest Rate Benchmark Reform Lead, Commonwealth Bank

10:30

Morning Tea

11:00

How to deal with the Transition - Case Study (Australia) 

  • Fate of BBSW 
  • Transition triggers and target operating model
  • IBOR transition risks
  • Transition planning and programme essentials
  • Programme governance
  • Implementation of the new ISDA fallback language

Damien Jones, Partner, Ernst & Young

12:30

Lunch

13:30

How to deal with the transition

  • Background on IBORs
  • Phasing out of IBORs
  • Attitude of regulators
  • Risk disclosure
  • Questions and Answers: Over to you

Tom Highnam, Partner, Allens

Yu Zhang, Managing Associate, Allens

15:00

Afternoon Tea

15:30

Impact on risk management and risk control

  • Risk Free Rates
  • Overnight RFRs vs Term Rates
  • Current approaches to fallbacks
  • Key lessons and things to do
  • Questions and Answers: Over to you

Tom Highnam, Partner, Allens

Yu Zhang, Managing Associate, Allens

17:00

End of day one

 

Day 2, Wednesday 14 August 2019

08:30

Registration

09:00

Tax insights for IBOR Reform

  • Amendments to contracts may trigger gains and losses for Australian tax purposes
  • Proposed amendments to IFRS 9 and IAS 39 – where is the AASB?
  • Potential Australian Capital gains tax and balancing adjustments under TOFA
  • Transfer pricing
  • Other tax and legal issues

Stan Hales, Partner, Deloitte

10:30

Morning break

11:00

Accounting implications

  • Hedge accounting relationships
  • Fair value hedging 
  • Discounting/ valuations
  • Cashflow hedging 
  • Modification accounting

Andrew Bangura, Director, Ernst & Young

12:30

Lunch

13:30

The technology impacts and operating model challenges

  • Key considerations: Legacy vs new
  • Concurring new and legacy books
  • Migrations: Easier said than done
  • Jurisdictional differences in approach and timetable

Alastair Harris, Director, Deloitte

15:30

Final Wrap

  • ASIC Dear CEO Letter Lessons Learned and Insights
  • Where to from here on LIBOR Reform
  • Other benchmarks that form part of a successful Transition Program
  • Recommended Practical Priorities for the LIBOR Transition
  • Avoiding common pitfalls

Alexander Lord, Director, Deloitte

17:00

End of training course