Directive 2002/47/EC of the European Parliament and of the Council of 6 June 2002 on financial collateral arrangements as amended by Directive 2009/44/EC (FCD) creates a harmonised EU legal framework for the creation and enforcement of collateral, i.e. ‘title transfer financial collateral arrangements’ (where the full title to the collateral is transferred to the collateral taker) or ‘security financial collateral arrangements’ (where the collateral taker receives a security right, e.g. a pledge or a charge).
The European Commission has now published a report that focuses on the implementation of Article 3(1) of the FCD. The scope of the report is whether the FCD works effectively and efficiently as regards formal acts required to provide credit claims as collateral.
The report concludes that Article 3(1) of the FCD seems to continue to be appropriate.
View European Commission (DG FISMA): Report from the Commission to the Council and the European Parliament on the appropriateness of Article 3(1) of Directive 2002/47/EC on financial collateral arrangements, 29 June 2016