On 28 November 2016 the European Commission (the Commission) issued a proposal (the Proposal) for a Regulation on a framework for the recovery and resolution of central counterparties (CCPs).

According to the Commission’s factsheet issued at the same time as the Proposal, CCPs increase stability in financial markets and are critical in helping reduce risks in the wider economy.  The recovery and resolution framework put forward in the Proposal will reduce the risk of a CCP failing, ensure the continuation of a failing CCP’s critical functions and provide national resolution authorities with tools for the resolution of a failing CCP.  This will help maintain financial stability, reduce the risk of contagion to other parts of the financial markets and prevent the cost of any resolution being borne by taxpayers.

Continue Reading (Financial) Safety First – proposal for an EU Regulation on the recovery and resolution of CCPs

On 22 November 2016 the EU Commission issued a proposal for an EU directive on preventive restructuring frameworks, second chance and measures to increase the efficiency of restructuring, insolvency and discharge procedures across EU Member States.

The consultation follows on from the EU’s recommendations in 2014 and its consultation earlier in 2016, and forms part of the EU’s Capital Markets Union plan.. If adopted, the Directive will for the first time harmonise certain substantive aspects of Member States’ restructuring and insolvency laws and will have a significant impact on national insolvency regimes.

Continue Reading “Rescue Me” – New restructuring proceedings ahead for EU Member States

Significant innovations have been introduced in Italy by Law Decree no. 83 of 27 June 2015 (entitled Urgent Measures on Insolvency, Civil and Procedural Matters and the Organization and Functioning of Judicial Commissioners (the “Decree”).
The recently enacted provisions are the result of engagement between various institutions and organisations, with the noteworthy contribution of Ernesto Apuzzo, the partner leading the Business Restructuring and Insolvency practice at Hogan Lovells, who participated in the work of the organizing committee coordinated by the Italian Ministry of Economy for devising the several elements of the reform.  Continue reading