|Author (Corporate)||European Commission: DG Justice and Consumers|
|Series Details||COM (2018) 96|
Legislative initiative published by the European Commission on 12 March 2018, which sets out a framework to designate which national law should determine the ownership of a claim after it was assigned on a cross-border basis.
The assignment of claims is a mechanism used by companies to obtain liquidity and have access to credit, as in factoring and collateralisation, and by banks and companies to optimise the use of their capital, as in securitisation.
As part of the Action Plan for the Capital Markets Union (SMU) and its Mid-Term Review, the European Commission announced targeted action on rules on the ownership of securities and the third-party effects of assignments of claims to reduce legal uncertainty for cross-border transactions in securities and claims. This proposal seeks to implement that commitment. Its general objective is to foster cross-border investment in the EU and its specific objective is to help to increase cross-border transactions in claims by providing legal certainty through the adoption of uniform conflict of laws rules at EU level.
The legislative initiative was adopted by the Commission on 12 March 2018, alongside a Communication on the law applicable to the proprietary effects of transactions in securities. The plenary session of the European Parliament adopted a negotiating position on 13 February 2019, following another decision to engage in trilogue negotiations.
|Subject Categories||Economic and Financial Affairs, Justice and Home Affairs|
|Subject Tags||Capital Markets Union [CMU]|
|Keywords||Free Movement of Capital
|International Organisations||European Union [EU]|