Financial Collateral Directive

the Financial Collateral Directive (2002/47/EC (EUR Lex)) is a well-intended piece of EU Legislation 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 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."

Interpretation

Helpful Clifford Chance article here

Adoption

• Portugal: It was adopted by Portugal in July 2004 (see in depth article here)
• UK': It was adopted by the UK under the Financial Collateral Arrangement (No.2) Regulations 2003.