Reels | Why are supply chain regulations important? - Trade Treasury Payments

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Isabella Lewis, Senior Associate in the Trade & Commodity Finance Group at A&O Shearman, explains why recent supply chain regulations matter from a commercial perspective.

• Financial penalties: Enforcement can carry significant fines, creating material risks for businesses.
• Business interruption: Penalties may extend to the removal of products from the market, with major financial consequences.
• Consumer and legal risk: Shifting consumer expectations, litigation, and activism can directly impact business operations and reputation.
• Contractual obligations: Commitments in financing agreements (such as LMA-style loans) often require strict compliance, with penalties for breach.

For finance providers, these regulations are equally critical. Supply chains and supply chain finance are deeply interconnected, meaning close collaboration with clients is essential. The impact spans multiple sectors and products — far from a narrow issue.

🎙️ Recorded in partnership with ITFA Education Day, held in London.