Scottish receivables transfer and moveable securities to be reformed?
On 19 December 2017 the Scottish Law Commission issued its much anticipated Report on Moveable Transactions.
The Commission is suggesting (a) that assignation of claims (including trade debts and rents) be possible by simple electronic registration in a new register and without notice to debtors and (b) that a new statutory pledge by similar registration be introduced over tangible moveables, intellectual property, shares and other financial instruments without transfer of possession or ownership. The proposals also seek to permit assignations of future claims and pledges over future assets and to address a series of other shortcomings of the current Scottish regimes - building on existing systems to create coherent modern legal regimes for assignation and pledge capable of adapting to further future development. It is hoped that the Scottish Government will move forward swiftly with the Commission’s proposals.
Hamish Patrick, Andrew Kinnes and Neil Campbell of Shepherd and Wedderburn are members of the Commission’s Advisory Group consulted throughout the project and would be very pleased to provide further information on the Commission’s proposals and the opportunities they will provide.