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PR(06)23: Liechtenstein fails to implement Directive 2002/47/EC on financial collateral arrangements


The EFTA Surveillance Authority today delivered a reasoned opinion to Liechtenstein due to its failure to ensure implementation of Directive 2002/47/EC on financial collateral arrangements.

Liechtenstein should have implemented the Directive by 1 September 2005 at the latest.

Directive 2002/47/EC focuses on bilateral financial collateral arrangements. It is one element in the creation of a uniform EEA legal framework to limit credit risk in financial transactions through the provision of securities and cash as collateral. The Directive aims to facilitate in an effective and simple manner cross border transactions involving collateral arrangements, inter alia by:

  • providing legal certainty;
  • providing a degree of protection from certain rules of insolvency law; and
  • restricting formalities and administrative burden on the creation and enforcement of collateral arrangements.

This contributes to the integration and cost-efficiency of the financial market, as well as the stability of the financial system in the EEA, thereby supporting the freedom to provide services and the free movement of capital.

The purpose of the Authority’s reasoned opinion is to give Liechtenstein a last chance to take corrective measures before the Authority decides whether to bring the matter before the EFTA Court. Liechtenstein has been given three months to take the measures necessary to comply with the reasoned opinion.

For further information, please contact:
Mr. Hallgrímur Ásgeirsson
Director, Internal Market Affairs Directorate
Tel. (+32)(0)2 286 18 60

10 May 2006

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