Capital Markets Union: EU Commission consults on conflicts of laws regarding securities and claims

The EU Commission has launched a consultation on conflict of laws rules for third party effects of transactions in securities and claims, which is intended to examine the possibility of making conflict of laws rules on securities and claims ownership more consistent across the EU.

The EU Commission's Capital Markets Union (CMU) Action Plan, adopted in September 2015, envisages action on securities ownership rules and third party effects of assignment of claims in order to facilitate cross-border investing. The purpose of the consultation is to gather stakeholders' views on the practical problems and types of risks caused by the current state of harmonisation of the conflict of laws rules on third party effects of transactions in securities and claims and to gather views on possibilities for improving such rules. Responses will feed into the Commission's assessment of legal risks, the problem's scale and possible EU action.

Comments on the consultation are due by 30 June 2017.

Alongside the consultation, the Commission has also established an expert group on conflict of laws regarding securities and claims, which is intended to provide the Commission with specialist advice on private international law and financial markets. An impact assessment on the problems to be addressed and possible solutions was previously published in February 2017.