The Belgian Financial Collateral Law amended

The Belgian law of 15 December 2004 concerning financial collateral arrangements (the “Financial Collateral Law”) has been significantly changed further to the implementation of Directive 2009/44/EC, which amends, among others, the financial collateral directive 2002/47/EC.

The most important change concerns the disapplication of the Financial Collateral Law during judicial reorganisation procedures and in case of emergency measures taken against financial institutions. Given the complexity of this exemption and the exceptions to the exemption, we have produced a user-friendly flowchart as an annex to our note.

Please click here to read our note on the amendments, which also covers:

  • The extension of the financial collateral definition to include  “credit claims”
  • The clarification of the definition of “financial instruments”
  • The confirmation that no dispossession is required for a pledge on cash or credit claims
  • The exclusion of netting with non-merchant individuals from the scope of application of the Financial Collateral Law.
If you have any questions, please contact Jacques Richelle (+32 2 501 95 37), David Ballegeer (+32 2 501 95 93), Gilles Nejman (+32 2 501 91 40), Etienne Dessy (+32 2 501 90 69) or your usual Linklaters contact.