The European Commission announced today proposals on (i) covered bonds, (ii) cross-border distribution of investment funds and (iii) the law applicable to cross-border transactions in claims and securities (press release).
The latter issue was dealt with in a previous post on this blog by Louis Coussée. The assignment of a claim refers to a situation where a creditor transfers the right to claim a debt to another person in exchange of a payment. This system is used by companies to obtain liquidity and access credit. At the moment, there is no legal certainty as to which national law applies when determining who owns a claim after it has been assigned in a cross-border case. The new rules proposed today clarify according to which law such disputes are resolved: as a general rule, the law of the country where creditors have their habitual residence would apply, regardless of which Member State’s courts or authorities examine the case.
The measures presented today, and the applicable to cross-border transactions in claims and securities.
The proposals will be presented by May 2018 in order to make it possible that legislation can be adopted before European Parliament elections in 2019.
More information is available from a Fact Sheet issued by the Commission.