On 13 April 2018, the Financial Markets Law Committee (FMLC) published a paper setting out certain legal uncertainties as regards the European Commission’s proposal to amend the moratorium provisions within the Bank Recovery and Resolution Directive. Specifically the FMLC considers four sets of uncertainties relating to:

• the existing moratorium powers;
• financial collateral arrangements;
• custody requirements; and
• back-to-back contracts involving central counterparties.

The FMLC recommends, by way of conclusion, that further thought is given to synchronise the new moratorium powers with international standards.