More than 100 delegates attended the launch of the new Uniform Rules on Forfaiting (URF 800), held at the SNR Denton offices on 30 January 2013.
In his introductory speech, ICC Banking Commission executive secretary Thierry Sénéchal, said that developing the rules took “a lot of time, resources and expertise” and that the ICC wanted to “make sure we balance between the democratic process and efficiency.”
International Forfaiting Association chair Paolo Provera thanked the ICC for its support and the drafting group for their time. He paid tribute to three individuals he called the “engine” of the rules: Donald Smith, who was appointed chair of the drafting group in May 2009, Geoff Wynne (SNR Denton) and Sean Edwards (SMBC). Wynne and Edwards both went on to give presentations on the application of the URF 800 rules and model agreements.
Bank of China’s Lixin Guo also received a vote of thanks for translating the rules into Mandarin. “China,” said Provera, “is very important in the forfaiting market.”
The launch highlighted that it is more essential than ever for exporters and other companies engaged in international trade to monetise their receivables. These receivables may take different forms; promissory notes, bills of exchange and letters of credit in a variety of jurisdictions. Provera explained how the forfaiting industry can accommodate and provide finance for all these types of instruments and even enable exporters to provide attractive sales terms for their buyers.
Uniform Rules for Forfaiting (URF 800) contains some helpful definitions of forfaiting (the scope has widened from the old promissory-note based definitions) and some model agreements.
The EUR25 booklet is available from www.iccbooks.com.