The European Commission has proposed a new regulation to provide for uniform choice of law rules applicable when establishing whether an assignment of claims is protected from third party rights. According to the proposal, the main principle will be that an assignment of claims, such as trade receivables, shall be perfected in accordance with the laws in the country where the assignor has its "habitual residence". The proposal would solve an issue which is often a problem in international financing, where current conflict of law rules may not always be determined with certainty, which causes legal risks that businesses have to take into account when considering a cross-border assignment of claims.
The Financial Conduct Authority (FCA) of the United Kingdom has confirmed cessation or loss of representativeness of all the 35 LIBOR benchmark settings, which effectively means that market participants should move away from LIBOR and determine alternative reference rates for all financing which continues beyond year-end 2021. In order to prepare for the cessation of LIBOR the European Council has opted for legislative fix for LIBOR and has adopted amendments to the Benchmark Regulation (EU) 2016/1011 giving the European Commission power to designate statutory successor to LIBOR in certain cases in order to deal with so called tough legacy contracts, which do not provide for suitable fallback provisions.