The Applicable Law for the Third-Party Effects of Assignment of Claim - the Approach of the United Kingdom

The European Commission proposed a new regulation related to the law applicable to third-party effects of the assignment of claims. By this regulation the European Commission is aiming at increasing cross-border transactions, investments and market integration. However, the proposal is facing negative positions of member states, especially the United Kingdom. Even though the United Kingdom will not be obliged to follow the rules from the proposal, because it will come into effect after the transition period ends, its approach on this matter will regulate the third party effects of the assignment of claims in case the of cross-border transactions between a person from a member state and from the United Kingdom. Taking into account the difference between the approaches of the European Union and the United Kingdom, persons involved may get into more legal uncertainty than before.