The Court of Justice of the European Union (CJEU) has ruled today that the Pension Protection Fund regime does not satisfy European law requirements. The judgment is likely to have a significant impact on the PPF, and could have wider knock-on effects for many occupational pension schemes.

Background to the case

In accordance with EU legislation, Member States have the power to limit the obligation of public guarantee institutions to pay employees’ claims in the event of their employer’s insolvency. The Court of Justice found to be compliant a national provision (Bulgarian law) that confines the protection given by said guarantee institutions to those employment relationships that have not ended within the three months prior to the opening of insolvency proceedings.

Introduction

Basel and other regulators seem to regard credit risk as being under control and have identified reputational and IT risks – risk you cannot close off with prudential capital charges – as the sources of the next crisis. Another one being talked about is potential illiquidity for funds, which are buying more illiquid assets in the hunt for yield.

Im Rahmen der Globalisierung sind Unternehmen regelmig nicht nur im Grndungsland, sondern in mehreren Rechtsordnungen ttig. Fr den Fall, dass ein Unternehmen scheitert, sind daher bestimmte Regeln erforderlich, die ein eventuelles Insolvenzverfahren vorhersehbar machen. In der EU gibt es derzeit zwei Verordnungen1, die fr die Zeit vor bzw. die Zeit ab 24.06.2015 gelten.

Grenzberschreitende Insolvenz in der EU

In the context of globalisation, companies are often active not only in the country of incorporation but also in several other legal systems. If a company fails, there is a need for rules that make the insolvency proceedings predictable. In the EU there are two current regulations1 to take into account, one applicable before and one after 24.06.2015.

Cross-border insolvency in the EU

KEY POINTS Investors seek reliable information, legal certainty, predictability of outcome and the

opportunity to participate in a rescue and/or restructuring which will recover value. The Recast European Insolvency Regulation (the `Recast EIR') should, at least in part,

help investors meet those objectives. It is hoped that the Recast EIR will encourage greater investment (including distressed

On 12 March 2018 the European Commission published a proposal for a Regulation to govern the law applicable to the third-party effects of assignments of claims (the “Assignment Regulation”).

The proposal of the Assignment Regulation adopted by the European Commission deals with which law applies to determine the effectiveness and perfection of the transfer of title – and the creation of other rights like pledges and charges – in relation to claims and receivables vis-a-vis third parties.

Not every sale of a unit of production in an insolvency proceeding is free of VAT

Central Economic-Administrative Tribunal decision of March 21, 2018