Proposal for a Regulation on the law applicable to the third-party effects of assignments of claims

Author (Corporate)
Series Details COM (2018) 96
Publication Date 12/03/2018
Content Type


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.

Further information:

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.

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Commentary and Analysis
University of Oxford: Business Law Blog, 08/05/2018: Uniform European Union Conflict of Laws Rule to Foster Cross-Border Transfer of Claims
EPRS: Briefing, June 2018: Initial Appraisal of a European Commission Impact Assessment
EPRS: Briefing, June 2018: Law applicable to the third - party effects of assignments of claims
University of Leiden: Leiden Law Blog, 17/09/2018: Challenging the European Commission’s magic wand

EUR-Lex: SWD(2018)52: Impact assessment
EUR-Lex: SWD(2018)53: Executive summary of the impact assessment
European Parliament: Legislative Observatory: Procedure File for Proposal on Law applicable to the third-party effects of assignments of claims
European Parliament: Legislative Train Schedule: Assignment of Claims and Securities Ownership
European Commission: DG Justice and Consumers: Assignment of claims
Council of the European Union: Presidency Note for Proposal for Regulation on Assignment of Claims (4 June 2020)

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