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.
London interbank offered rate (LIBOR) and other interbank offered rates (IBORs) have traditionally been used to set interest rates for various financial products such as loans, bonds and derivatives. The era of using IBORs may be about to come to an end as LIBOR is expected to cease to be published after 2021 and alternative reference rates are being identified and developed for other IBORs by relevant central banks across jurisdictions. As a part of this development the Riksbank has commenced a six-month test period for publishing SWESTR (Swedish krona Short Term Rate) as an alternative reference rate.
In line with many other countries, Sweden is now proposing to introduce pre-transaction approval requirements for transfers of security-sensitive activities. The Swedish Government has put forward the proposal in order to address the risk of unwanted takeovers foreseen as a result of the economic constraints in the context of the Corona virus. The Government has proposed the amendments to enter into force already on 1 January 2021.
On 16 July 2020, the European Court of Justice issued its ruling in Case C-311/18 (“the Schrems II case”), which concerned Facebook’s transfer of personal data from servers in Ireland to servers in the USA.