Financial collateral

Malta amends law implementing the Financial Collateral Directive. William Woods writes for Bizoffshore.com:

The Financial Collateral Directive (FCD) contains an opt out whereby Member States may exclude, from the scope of the local legislation implementing the FCD, financial collateral arrangements wherein one of the persons is not an institution as laid down in Article 1(2)(a – d) of the FCD (examples of such institutions include banks, investment firms, UCITS etc.). When implementing the FCD on the 1st May, 2004, Malta had decided to exercise this opt out and accordingly the Maltese Financial Collateral Arrangements Regulations only applied when both the collateral taker and the collateral provider were both such institutions as defined in the Directive..