Hague Securities Convention impacts choice of law rule

Author: | Published: 24 Apr 2017

New rules surrounding the choice of law in respect of securities held by intermediaries have been in force since April 1. Some practical issues still need to be ironed out

Given that securities are now commonly held, transferred and pledged by electronic book entry in securities accounts at intermediaries and not through physical possession or other direct holding systems, the need was recognised for a multi-jurisdiction convention on the choice of laws in respect of securities held by intermediaries. The Convention on the Law Applicable to Certain Rights in Respect of Securities held with an Intermediary, commonly referred to as the Hague Securities Convention (HSC), provides choice of law rules in respect of certain rights relating to those securities and is effective from April 1 2017 in the countries that have adopted it – Switzerland, Mauritius and the US. It is expected to be adopted in due course by all...


 

 

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