82,976
edits
Financial Collateral Directive: Difference between revisions
no edit summary
Amwelladmin (talk | contribs) No edit summary |
Amwelladmin (talk | contribs) No edit summary |
||
| Line 1: | Line 1: | ||
{{anat|security|}} | {{anat|security|}} | ||
The {{tag|Financial Collateral Directive}} ({{eudirective|2002|47|EC}}) is a well-intended piece of {{tag|EU Regulation}} that, by common consent, didn't quite achieve what it set out to, which was to introduce | The {{tag|Financial Collateral Directive}} ({{eudirective|2002|47|EC}}) (see also the UK legislation [https://www.legislation.gov.uk/uksi/2003/3226/regulation/ here]) is a well-intended piece of {{tag|EU Regulation}} that, by common consent, didn't quite achieve what it set out to, which was to introduce | ||
:“''a Community framework to reduce credit exposure in financial {{tag|collateral}} arrangements. These common rules contribute to the effectiveness and integration of European financial markets, reducing credit losses and thereby stimulating cross-border transactions and competitiveness.''” | :“''a Community framework to reduce credit exposure in financial {{tag|collateral}} arrangements. These common rules contribute to the effectiveness and integration of European financial markets, reducing credit losses and thereby stimulating cross-border transactions and competitiveness.''” | ||
====Financial collateral==== | |||
A financial collateral arrangement is defined, laboriously, as follows: | |||
{{quote| | |||
“'''financial collateral arrangement'''” means a title transfer financial collateral arrangement or a security financial collateral arrangement, whether or not these are covered by a master agreement or general terms and conditions; | |||
“'''security financial collateral arrangement'''” means an agreement or arrangement, evidenced in writing, where— | |||
{{L3}}the purpose of the agreement or arrangement is to secure the relevant financial obligations owed to the collateral-taker;<li> | |||
the collateral-provider creates or there arises a security interest in financial collateral to secure those obligations; <li> | |||
the financial collateral is delivered, transferred, held, registered or otherwise designated so as to be in the possession or under the control of the collateral-taker or a person acting on its behalf; any right of the collateral-provider to substitute equivalent financial collateral or withdraw excess financial collateral shall not prevent the financial collateral being in the possession or under the control of the collateral-taker; and <li> | |||
the collateral-provider and the collateral-taker are both non-natural persons; </ol> | |||
“'''title transfer financial collateral arrangement'''” means an agreement or arrangement, including a repurchase agreement, evidenced in writing, where— | |||
{{l3}}the purpose of the agreement or arrangement is to secure or otherwise cover the relevant financial obligations owed to the collateral-taker;<li> | |||
the collateral-provider transfers legal and beneficial ownership in financial collateral to a collateral-taker on terms that when the relevant financial obligations are discharged the collateral-taker must transfer legal and beneficial ownership of equivalent financial collateral to the collateral-provider; and <li> | |||
the collateral-provider and the collateral-taker are both non-natural persons; | |||
}} | |||
{{sa}} | |||
*[[Financial Collateral Directive]] | |||
*[[Registration of charges]] | |||
===Overview=== | ===Overview=== | ||