![Risk.net](https://www.risk.net/sites/default/files/styles/print_logo/public/2018-09/print-logo.png?itok=1TpHrpuP)
UK consults on Rome I Regulation
The UK ministry of Justice has issued a consultation paper on the UK’s decision to opt into EU contract law Rome I
LONDON – The UK Ministry of Justice has published a consultation paper (CP) that seeks views on whether the UK should opt in to the proposed Rome I Regulation on the law applicable to contractual obligations (Rome I) and, if so, whether the Rome I rules should apply throughout the UK. When the draft EU legislation first emerged in December 2005, UK business leaders were up in arms as they believed that Rome I threatened to seriously undermine the financial services sector and damage online businesses, and has the potential to become a legal compliance nightmare.
Rome I, which the European Commission claims simply enshrines into European law the policies set out in the 1980 Rome Convention, sets out the rules to determine the applicable laws of contract in cross-border trade. However, the draft legislation contained substantial amendments to the Rome Convention that could have serious and wide-ranging ramifications for cross-border trade.
Under the draft proposal, a UK firm selling its goods and services to consumers across the EU would no longer be secure in the knowledge that it is broadly governed by English law. Instead it would have to navigate a minefield of up to 27 different, often conflicting legal regimes – or, more likely, opt not to do business outside the UK.
Following consultation with UK stakeholders in 2006, the UK government decided to engage in the negotiations but not opt in to the proposal. The Council and the European Parliament agreed the text of Rome I in December 2007 and the CP states that Rome I will be formally adopted this year and its substantive provisions will come into force 18 months later.
The provisions in the original proposal that were of greatest concern to UK stakeholders during negotiations have either been removed, substantially revised or returned to their Rome Convention form subject to later review. In the case of those provisions subject to review, future amendments will not automatically bind the UK. In light of this, the UK government's preliminary conclusion is that the UK should now opt in to Rome I and apply similar rules to contracts connected to two or more jurisdictions within the UK. But the government wishes to test this conclusion by seeking views from stakeholders. The closing date for responses to the consultation paper is June 25, 2008. www.justice.gov.uk/docs/cp0508.pdf
Only users who have a paid subscription or are part of a corporate subscription are able to print or copy content.
To access these options, along with all other subscription benefits, please contact info@risk.net or view our subscription options here: http://subscriptions.risk.net/subscribe
You are currently unable to print this content. Please contact info@risk.net to find out more.
You are currently unable to copy this content. Please contact info@risk.net to find out more.
Copyright Infopro Digital Limited. All rights reserved.
As outlined in our terms and conditions, https://www.infopro-digital.com/terms-and-conditions/subscriptions/ (point 2.4), printing is limited to a single copy.
If you would like to purchase additional rights please email info@risk.net
Copyright Infopro Digital Limited. All rights reserved.
You may share this content using our article tools. As outlined in our terms and conditions, https://www.infopro-digital.com/terms-and-conditions/subscriptions/ (clause 2.4), an Authorised User may only make one copy of the materials for their own personal use. You must also comply with the restrictions in clause 2.5.
If you would like to purchase additional rights please email info@risk.net
More on Regulation
Modernising compliance functions with regtech
Regtech addresses the complexities of regulatory requirements, offering innovative tools to modernise compliance functions, streamline processes and enhance efficiency. This article explores its role in compliance and reporting within the banking sector,…
For the Fed discount window, destigmatisation starts at home
US supervisors must change tack to encourage central bank liquidity utilisation
Study finds just 10 banks plan to apply for FRTB models
Research provides extra insight on reasons for decline in internal models
EU banks hedge net interest income to pass new IRRBB test
Would-be outliers look to cut sensitivity of cashflows to rate moves, but at what cost?
Banks cry foul over shock decision from Basel Committee
Asset and liability management professionals question severity of criteria in revised IRRBB tests
Fresh EU push for single securities supervisor to compete with US
But MEP expresses ‘concern’ EU nations will stall revival of capital markets union
Discord deepens over fund-linked trades in FRTB
More banks use punitive approach to capital treatment under new trading book regime, irking regulators
AI, quantum computing and tokenisation set to transform finance – Menon
But significant barriers remain preventing the technologies from unlocking their full potential