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ATFA 2017: Let’s get away from it all

Americas / 10-05-17 / by
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The Association of Trade and Forfaiting in the Americas’ (ATFA’s) annual conference 2017 revealed positivity in the sector, despite concerns over rising populism, regulatory changes and uncertainty in Latin America. GTR attended the event to report on the main topics.

As the Bermudan sun set in the background of the Hamilton Princess Hotel on April 26, an emotional Brendan Herley presented the programme of his last annual conference as president of ATFA. Overall, speakers and delegates were hopeful about the future of trade and trade finance in the Americas, despite the now common concerns over US President Donald Trump’s somewhat isolationist agenda, as well as Brexit and the future of the European Union (EU). Trade finance pricing was also raised as an issue, amid too much liquidity chasing limited borrowing demand, particularly in Latin America.

By the end of the conference, Harpreet Mann, the new president, had taken over. Mann, an underwriting counsel at QBE North America, was previously the association’s secretary.

 

Bright prospects for insurers

The trade credit and political risk insurance sector is one that has grown exponentially in the past few years. “Before the [financial] crisis we had somewhere between US$500mn and US$750mn-worth of capacity [in the Americas], and now we’ve almost doubled that to around US$1.5bn in capacity, so the market has evolved a lot and with the new Basel III rules as well as the Federal Reserve guidelines, banks are using the product a lot more,” Donnie DiCarlo, senior vice-president, credit and political risk group, Latin America, at Marsh, said.

He explained that the financial crisis was a great test for the insurance market, which came out of it stronger and, in his mind, with more credibility. “It was a true time to test the market and see if it actually performed, if claims got paid out and if the insurance really did what it was supposed to do, and fortunately for us, it did. There were somewhere between US$3bn and US$3.5bn-worth of claims that got paid out back to banks. They were paid out in a very short period of time. So the product was tested, banks loved the way it performed, and then it was used a lot more after that financial crisis.”

According to DiCarlo, banks have been using insurance in a much broader range of transactions than in the past, including project finance, securitisations and bonds. Furthermore, insurers and brokers have been working in conjunction with law firms to make policies clearer under Basel III. “You can use the product to get credit relief, but it has exponential benefits if you get capital relief with it. Using the wording to qualify as an eligible guarantee under the US Federal Reserve guidelines which were passed in 2013 benefits clients a lot,” he tells GTR.

Another new development in the US insurance market is the growing use of syndication. According to Lila Rymer, head of US underwriting for trade credit and political risk at Beazley, the practice has always been popular in the London market, and more recently has become very common in the US, spurred in part by the arrival of insurers from London, who are encouraging syndication for various reasons.

“For the clients, there are some key benefits of syndication. For one, the client would have relationships with multiple insurance carriers and this is beneficial over time. While the client might find a single insurer to cover its good risks, they might struggle to find capacity if that single insurer does not want to cover the next more challenging deal. If instead the client spread those good risks amongst a few carriers, they would have multiple carrier relationships, so when that challenging deal comes in,  there are multiple carriers to approach for a participation. I think the relationship piece and experience working together are key,” she tells GTR.

She adds that syndicating with multiple carriers also makes claims easier to stomach for insurers, as they each have to cover a smaller amount than if they were alone on the transaction. Furthermore, it helps develop expertise in the industry, with insurers having the opportunity to join a transaction they are not specialised in and learn from the lead carrier.

 

 (Un)sustainability of Brazil’s recovery

Brazil’s future post-presidential elections in 2018 left speakers divided: a presentation by an included an expectation that President Michel Temer’s liberal reforms would be reversed once he leaves office.

But others were more optimistic. Ana Firmato, a partner at KPMG in São Paulo, explains: “There’s always a risk of things going back to the way they were. Apparently Lula [Luiz Inácio Lula Da Silva], our former president, is going to run again for president next year. Of course, he’s also implicated in the Lava Jato [Car Wash] scandal so he may not be able to. I really do think that it’s unlikely for that to happen.

“As a country, I think we’re leaning more towards liberal ideas now. We used to be very paternalistic in our view of politics. The population used to like big governments with a lot of state-owned companies and civil servants, so a lot of people out of college always wanted to move towards the civil service because of all the benefits. Because of all the reforms, it’s becoming a little bit less interesting, so maybe there will be an opportunity to get into a more liberal mindset, with more entrepreneurship, less government, maybe some privatisations.”

She expects the recession to end this year with positive economic signals emerging. For example, interest rates and inflation are on a downward trend, which is expected to boost consumption. For Firmato, the fact the Temer doesn’t intend to run for re-election is helping him pass the unpopular reforms that are so desperately needed to redress the Brazilian economy, namely labour and social security laws.

“You have to get the tough things done and almost get in destructive mode in order to get improvements. All of these reforms are for the long-term good of the country but are of course very unpopular. But at the end of the day they will show the sustainability of the country as a whole,” she says.

For his part, Marsh’s DiCarlo believes that while the drop in commodity prices undeniably hurt Brazil, recessions can never last too long in a country built on commodities. “People are always going to need gasoline, copper, steel, etc. As we see commodity prices start to come up it’s really going to benefit Brazil. A lot of the Lava Jato [investigation] is behind them, so [Brazil is] going to have a chance to grow and hopefully they’ll get a chance to export business as well, whether it be to Asia or some new opportunities in Sub-Saharan Africa.”

 

ITFA’s lobbying role

In a case study, Paul Coles, International Trade and Forfaiting Association (ITFA) board member, showed how ITFA intervened to prevent Moody’s from reclassifying supply chain finance programmes as on-balance sheet lending after the collapse of Spanish renewables giant Abengoa at the end of 2015. Spanish and international banks had large exposures with the company: according to a Bloomberg article based on a document compiled by one of the creditors, Abengoa’s total debt was estimated at around €20bn (US$21.2bn), including a large portion of supply chain finance.

In December 2015, Moody’s published a report saying that reverse factoring had debt-like features and should therefore be considered on-balance sheet lending rather than trade payables – which would have eliminated one of the biggest advantages of supply chain finance for banks and corporates. ITFA organised a roundtable (which took place in December 2016) with Moody’s and the trade and supply chain finance heads of major banks to discuss the ratings agency’s concerns. This resulted in Moody’s reverting supply chain finance’s classification to “non-standard adjustment” and a commitment to look at this type of financing scheme on a case-by-case basis.

This type of example should serve as motivation for those who haven’t yet decided to join such associations. As of mid-April 2017, ATFA counted 64 institutions as members, a drop from 77 at the end of 2016. However, nine new members joined in the past year, including BNP Paribas, Brickell Bank, Clifford Chance, Equinox Global, Gerald Metals, III Corp, Lone Star Capital, Talbot Underwriting and TD Bank.

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T&CsPrivacy Policy© Exporta Publishing & Events Ltd 2018

Privacy Policy

Our privacy commitments

This Privacy Policy outlines the information we may collect about you in relation to your use of our websites, events, related publications and services (“personal data”) and how we may use that personal data. It also outlines the methods by which we and our service providers may (subject to necessary consents) monitor your online behaviour to deliver customised advertisements, marketing materials and other tailored services. This Privacy Policy also tells you how you can verify the accuracy of your personal data and how you can request that we delete or update it.

This Privacy Policy applies to all websites operated by Exporta Publishing & Events Ltd (as indicated on the relevant website).

This privacy statement does not cover the activities of third parties, and you should consult those third-party sites’ privacy policies for information on how your data is used by them.

Any questions regarding this Policy and our privacy practices should be sent by e-mail to privacy@gtreview.com or by writing to Data Protection Officer at, Exporta Publishing & Events Ltd, 4 Hillgate Place, London, SW12 9ER, United Kingdom. Alternatively, you can telephone our London headquarters at +44 (0) 20 8673 9666.

Who are we?

Established in 2002 and with offices in London and Singapore, Exporta Publishing & Events Ltd is the world’s leading trade and trade finance media company, offering information, news, events and services for companies and individuals involved in global trade.

Our principal business activities are:

  • Business-to-Business financial publishing. We provide a range of products and services focused on international commodities, export, supply chain and trade finance markets including magazines, newsletters, electronic information and data
  • Organisers of seminars, conferences, training courses and exhibitions for the finance industry

Exporta Publishing & Events Ltd is a company registered in the United Kingdom with company number 4407327 | VAT Registration: 799 1585 59

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This Data Protection Policy explains when and why we collect personal information about people who visit our website, how we use it, the conditions under which we may disclose it to others and how we keep it secure.

Why do we collect information from you?

Our primary goal in collecting personal data from you is to give you an enjoyable customised experience whilst allowing us to provide services and features that will meet your needs.
We collect certain personal data from you, which you give to us when using our Site and/or registering or subscribing for our products and services. However, we also give you the option to access our Sites’ home pages without subscribing or registering or disclosing your personal data.

We also collect certain personal data from other group companies to whom you have given information through their websites (including, by way of example, Exporta Publishing & Events Ltd and subsidiaries, in accordance with the purposes listed below). Should we discover that any such personal data has been delivered to any of the Sites, we will remove that information as soon as possible.

Why this policy exists

This Data Protection Policy ensures Exporta Publishing & Events Ltd:

  • Complies with data protection law and follow good practice
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  • pretexts itself from the risk of a data breach

We may change this Policy from time to time so please check this page occasionally to ensure that you’re happy with any changes. By using our website, you’re agreeing to be bound by this Policy.

Data protection law

The Data Protection Act 1998 described how organisations – including Exporta Publishing & Events Ltd – must collect, handle and store personal information. These rules apply regardless of whether data is stored electronically, on paper or on other materials. To comply with the law, personal information collected must be stored safely, not disclosed unlawfully and used fairly.

The Data Protection Act is underpinned by eight important principles. These say that personal data must:

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How do we collect information from you?

We obtain information about you when you use our website, for example, when you contact us about products and services, when you register for an event, register to receive eNewsletters, subscribe or register for a trial to our GTR magazine/website.

 Types of Personal Data Held and its Use

1.      Customer Services and Administration

On some Sites, Exporta Publishing & Events Ltd collects personal data such as your name, job title, department, company, e-mail, phone, work and/or home address, in order to register you for access to certain content, subscriptions and events. In addition, we may also store information including IP address and page analytics, including information regarding what pages are accessed, by whom and when.

This information is used to administer and deliver to you the products and/or services you have requested, to operate our Sites efficiently and improve our service to you, and to retain records of our business transactions and communications. By using the Sites and submitting personal information through the registration process you are agreeing that we may collect, hold, process and use your information (including personal information) for the purpose of providing you with the Site services and developing our business, which shall include (without limitation) the purposes described in the below paragraphs.

2.      Monitoring use of our Sites

Where, as part of our Site services, we enable you to post information or materials on our Site, we may access and monitor any information which you upload or input, including in any password-protected sections. Subject to any necessary consents, we also monitor and/or record the different Sites you visit and actions taken on those Sites, e.g. content viewed or searched for. If you are a registered user (e.g. a subscriber or taking a trial), when you log on, this places a cookie on your machine. This enables your access to content and services that

are not publicly available. Once you are logged on, the actions you take – for example, viewing an article – will be recorded (subject to any necessary consents). We may use technology or a service provider to do this for us. This information may be used for one or more of the following purposes:

  • to fulfil our obligations to you;
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  • to enable our journalists to contact and interact with you online in connection with any content you may post to our Sites.

Please see paragraph 5 below for more information on cookies and similar technologies and a link to a page where you can turn them on or off.

3.      Marketing

Some of your personal data collected under paragraphs 1 and 2 above may be used by us to contact you by e-mail, telephone and/or post for sending information or promotional material on our products and/or services and/or those of our other group companies.
We give you the opportunity to opt-out of receiving marketing communications. Further detail can be found on the applicable Site and in the footer of each marketing communication sent by us, our group companies or service providers. See also “Consents and opt-outs” section below.
We will not share your information with third parties for marketing purposes.

4.      Profiling

We may analyse your personal information to create a profile of your interests and preferences so that we can contact you with information relevant to you.

5.      Cookies and similar technologies

All our Sites use cookies and similar technical tools to collect information about your access to the Site and the services we provide.

What is a cookie?

When you enter some sites, your computer will be issued with a cookie. Cookies are text files that identify your computer to servers. Cookies in themselves do not identify the individual user, just the computer used.

Many sites do this whenever a user visits their site in order to track traffic flows, recording those areas of the site that have been visited by the computer in question, and for how long.

Users have the opportunity to set their computers to accept all cookies, to notify them when a cookie is issued, or not to receive cookies at any time. Selecting not to receive means that certain personalised services Exporta Publishing & Events Ltd offers cannot then be provided to that user.

 

Why do we use cookies?

  1. Log In – Where we provide log in mechanisms for site users a cookie is created at login and for the duration of the session. Each cookie contains a unique reference number only (no personal information) which is used to confirm you are authorised.
  2. Analytics – To allow us to keep track of traffic to our website we use cookies. The cookies simply tell us if you have previously visited our website so we can get more accurate figures for New vs Returning visitors.

Find and control your cookies

All of the major browser providers offer advice on setting up and using the privacy and security functions for their products. If you require technical advice or support for a specific browser/version please contact the provider or visit their website for further details: www.microsoft.com / www.mozilla.com / www.apple.com
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We may use cookies to:

  • remember that you have used the Site before; this means we can identify the number of unique visitors we receive to different parts of the Site. This allows us to make sure we have enough capacity for the number of users that we get and make sure that the Site runs fast enough
  • remember your login session so you can move from one page to another within the Site;
  • store your preferences or your user name and password so that you do not need to input these details every time you visit the Site;
  • customise elements of the layout and/or content of the pages of Site for you;
  • record activity on our Sites so that we understand how you use our Sites enabling us to better tailor our content, services and marketing to your needs;
  • collect statistical information about how you use the Site so that we can improve the Site; and
  • gather information about the pages on the Site that you visit, and other information about other websites that you visit, so as to place you in a “market segment”. This information is only collected by reference to the IP address that you are using, but does include information about the county and city you are in, together with the name of your internet service provider.

Most web browsers automatically accept cookies but, if you prefer, you can change your browser to prevent that, or to notify you each time a cookie is set. You can also learn more about cookies in general by visiting www.allaboutcookies.org which includes additional useful information on cookies and how to block cookies using different types of browser. Please note however, that by blocking, deleting or turning off cookies used on the Site you may not be able to take full advantage of the Site.

6.      E-mail tracking

E-mail tracking is a method for monitoring the e-mail delivery to those subscribers who have opted-in to receive marketing e-mails from GTR, including GTR Africa, GTR Asia, GTR Americas, GTR Europe, GTR Mena, GTR eNews, Third party e-mails and GTR Ventures.

Why do we track e-mails?

So that we can better understand our users’ needs, we track responses, subscription behaviour and engagement to our e-mails – for example, to see which links are the most popular in newsletters. They enable us to understand the consumers journey through metrics including open rate, click-through rate, bounces and unsubscribes. Any other purposes for which Exporta Publishing & Events Ltd wishes to use your personal data will be notified to you and your personal data will not be used for any such purpose without obtaining your prior consent.

How do you track GTR eNewsletters?

To do this, we use pixel GIFs, also known as “pixel tags” – these are small image files that are placed within the body of our e-mail messages. When that image is downloaded from our web servers, the e-mail is recorded as being opened. By using some form of digitally time-stamped record to reveal the exact time and date that an e-mail was received or opened, as well the IP address of the recipient.

7.      Consents and opt-outs

You can give your consent to opt-out of all or any particular uses of your data as indicated above by:

  • Indicating at the point on the relevant Site where personal data is collected
  • Informing us by e-mail, post or phone
  • Updating your preferences on the applicable Site or eNewsletter (unsubscribe and preference options are available in the footer of each eNewsletter)

To turn cookies and similar technologies on and off, see the information in paragraph 5 above. Any questions regarding consents and opt-outs should be sent by e-mail to privacy@gtreview.com or by writing to Data Protection Officer at, Exporta Publishing & Events Ltd, 4 Hillgate Place, London, SW12 9ER, United Kingdom. Alternatively, you can telephone our London headquarters at +44 (0) 20 8673 9666.

8.      Disclosures

Information collected at one Site may be shared between Exporta Publishing & Events Ltd and other group companies for the purposes listed above.

We may transfer, sell or assign any of the information described in this policy to third parties as a result of a sale, merger, consolidation, change of control, transfer of assets or reorganisation of our business.

9.      Public forums, message boards and blogs

Some of our Sites may have a message board, blogs or other facilities for user generated content available and users can participate in these facilities. Any information that is disclosed in these areas becomes public information and you should always be careful when deciding to disclose your personal information.

10.  Data outside the EEA

Services on the Internet are accessible globally so collection and transmission of personal data is not always limited to one country. Exporta Publishing & Events Ltd may transfer your personal data, for the above-listed purposes to other third parties, which may be located outside the European Economic Area and/or with a different level of personal data protection. However, when conducting transfers, we take all necessary steps to ensure that your data is treated reasonably, securely and in accordance with this Privacy Statement.

Who has access to your information?

Confidentiality and Security of Your Personal Data

We are committed to keeping the data you provide us secure and will take reasonable precautions to protect your personal data from loss, misuse or alteration.

However, the transmission of information via the internet is not completely secure. Although we will do our best to protect your personal data, we cannot guarantee the security of your data transmitted to our Site; any transmission is at your own risk. Once we have received your information, we will use strict procedures and security features described above to try to prevent unauthorised access.

We have implemented information security policies, rules and technical measures to protect the personal data that we have under our control from:

  • unauthorised access
  • improper use or disclosure
  • unauthorised modification
  • unlawful destruction or accidental loss

All our employees, contractors and data processors (i.e. those who process your personal data on our behalf, for the purposes listed above), who have access to, and are associated with the processing of your personal data, are obliged to keep the information confidential and not use it for any other purpose than to carry out the services they are performing for us.

Responsibilities

Everyone who works for or with Exporta Publishing & Events Ltd has some responsibility for ensuring data is collected, stored and handled appropriately. Each team handling personal data must ensure that it is handled and processed in line with this policy and data protection principles. However, the following people have key areas of responsibility. The board of directors is ultimately responsible for ensuring that Exporta Publishing & Events Ltd meets its legal obligations.

Name of Data Controller


The Data Controller is Exporta Publishing & Events Ltd. Exporta Publishing & Events Ltd is subject to the UK Data Protection Act 1998 and is registered in the UK with the Information Commissioner`s Office.

How to access, update and erase your personal information

If you wish to know whether we are keeping personal data about you, or if you have an enquiry about our privacy policy or your personal data held by us, in relation to any of the Sites, you can contact the Data Protection Officer via:

  • By writing to this address: Data Protection Officer, Exporta Publishing & Events Ltd, 4 Hillgate Place, London, SW12 9ER, UK
  • Telephone: +44 (0) 20 8673 9666
  • E-mail: privacy@gtreview.com

Upon request, we will provide you with a readable copy of the personal data which we keep about you. We may require proof of your identity and may charge a small fee (not exceeding the statutory maximum fee that can be charged) to cover administration and postage.

Exporta Publishing & Events Ltd allows you to challenge the data that we hold about you and, where appropriate in accordance with applicable laws, you may have your personal information:

  • erased
  • rectified or amended
  • completed

Disclosing data for other reasons

In certain circumstances, the Data Protection Act allows personal data to be disclosed to law enforcement agencies without the consent of the data subject. Under these circumstances, Exporta Publishing & Events Ltd, will disclose requested data. However, the Data Controller will ensure the request is legitimate, seeking assistance from the board and from the company’s legal advisors where necessary.

Changes to this Privacy Statement

We will occasionally update this Privacy Statement to reflect new legislation or industry practice, group company changes and customer feedback. We encourage you to review this Privacy Statement periodically to be informed of how we are protecting your personal data.

Providing information

Exporta Publishing & Events Ltd aims to ensure that individuals are aware that their data is being processed, and that they understand.

  • How the data is being used
  • How to exercise their rights

To this end, the company has a privacy statement, setting out how data relating to individuals is used by the company. This is available on request and available on the company’s website.

Review of this policy

We keep this Policy under regular review. This Privacy Statement was last updated in April 2018.