Letter to European Parliament: Proposal for a Regulation on the Law applicable to the Third-party Effects of Assignments of Claims: 24 April 2019

On 12 March 2018, the European Commission published a proposal for a Regulation of the European Parliament and of the Council on the law applicable to the third-party effects of assignments of claims (the “proposed regulation”). The proposed regulation applies the law of the assignor’s habitual residence to third-party effects, subject to various exceptions. On 13 February 2019, the European Parliament published its legislative resolution (the “legislative resolution”) adopting the proposed regulation, albeit with some amendments.

The Committee has previously engaged with this topic and recommended that the third-party consequences of assignments of claims should be governed by the law of the assigned claim rather than the law of the assignor’s habitual residence. This letter to the European Parliament reiterates that recommendation and draws attention to new uncertainties introduced by the legislative resolution.

Available as: PDF.