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INSOL Europe feedback on the final report of the High Level Forum on Capital Markets Union (EU Survey)

The European Commission issued a call for feedback to the recommendations issued in the Final Report of the High-Level Forum on Capital Markets Union published on 10 June 2020. This report, which sets out a series of recommendations aimed at moving the EU’s capital markets forward contains three recommendations on insolvency.

Firstly, the European Commission is invited to adopt a legislative proposal for minimum harmonisation of certain targeted elements of core non-bank corporate insolvency laws, including a definition of triggers for insolvency proceedings, harmonised rules for the ranking of claims (which comprises legal convergence on the position of secured creditors in insolvency), and further core elements such as avoidance actions (Recommendation 16a).

The second recommendation is for the European Commission to set up an expert group tasked with elaborating common terminology for principal features of the various national insolvency laws (Recommendation 16b).

The last recommendation is an invitation for the European Commission to analyse how the current bank supervisory reporting framework should be modified so that banks provide to supervisors the data on non-performing exposures that allows an analysis of the effectiveness of national insolvency systems of Member States. On the basis of this supervisory reporting data, EBA should start providing the Commission with bi-annual monitoring reports on the effectiveness of national insolvency systems of Member States (Recommendation 16b).

More information can be found at: https://ec.europa.eu/info/publications/cmu-high-level-forum_en
 
The call for feedback from stakeholders on the report ended on 30 June and INSOL Europe sent the following contribution.

We will keep you updated on any further developments following this call for feedback.

 update: 30 June 2020