Call for views on reform of the law on moveable transactions
Energy and Fair Committee is seeking views on reform of the law on moveable
note that in most cases your written submission will be published on the
Scottish Parliament’s website and may be quoted in the Committee’s report or in
Committee meetings (which are public and broadcast).
If you wish to request that your
submission be published without your name, please contact the Clerks at the
following email address: [email protected] or by calling 0131 348 5403.
making a submission, please read our privacy
about submitting your views to a Committee. This tells you about how we process
your personal data.
The Scottish Law Commission (SLC) was established in
legislation to propose reforms to the law. It has examined the issue of
moveable transactions. It published its final Report
on Moveable Transactions (including a draft
bill in volume 3) in 2017.
The Economy, Energy and Fair Work Committee took evidence
from several people involved in the Scottish Law Commission’s work on 26
November 2019. They argued that the law in this area needed
updating, and Scotland’s businesses were suffering as a result.
The Committee heard that it is difficult in Scotland for
businesses to raise money using moveable assets – such as plant, whisky
barrels, intellectual property rights or customer debts. Witnesses argued that
a number of other countries, including England, have clearer and more modern
legal regimes covering this area. This makes raising business finance easier.
The SLC recommends creating a new type of loan security
using moveable property, called a “statutory pledge”. To help with this, it
also recommends creating two new official registers:
of Statutory Pledges would provide details of moveable goods which had been
used as security for a loan. It would mainly be available for physical goods
but would also cover intellectual property rights and some financial
of Assignations would provide information about obligations which had been
transferred to a new owner – such as where a debt is sold from the original
creditor to a new creditor. Registering a transfer in the Register of
Assignations would remove the need to notify the debtor, thus making raising
finance on debts easier.
The Committee has agreed to look into this issue further. It
is seeking views on the following questions:
1. Have difficulties raising finance on moveable goods in Scotland affected your business or area of activity? If so, what practical impact has this had?
2. The Committee understands that there are various work-arounds used by Scottish businesses to enable access to finance on moveable goods. Are these sufficient, or would the law benefit from being reformed?
3. The Scottish Government will have to invest money in creating the two new registers recommended by the Scottish Law Commission. Do you think there is sufficient demand to justify this? Do you have any evidence to support this?
4. The proposals in the Scottish Law Commission’s draft bill would apply to consumers as well as businesses. Do you think there are enough protections in place for consumers?
5. Do you have comments on any of the other proposals contained in the draft bill?
6. Do you agree with the Scottish Law Commission’s view that the law relating to moveable transactions should be changed?
7. Do you have any other comments?
How to submit your views
Your response does not need to cover all the areas specified above and can just focus on those that are relevant to you or your organisation. You are also welcome to provide other information that you feel would be relevant.
Moveable Transactions - Template
The Committee will consider the responses received and
decide its next steps in relation to this inquiry after the deadline (set out
below). If you respond to the
consultation, you will be informed of the next steps when they have been agreed
by the Committee.
The closing date for receipt of submissions
is Friday 17 April 2020.
There are a few situations where we may choose not to publish
your evidence or have to edit it before publication for practical or legal
reasons, including data protection and defamation.
We welcome written views in English, Gaelic, Scots or any
send your submission by email to: [email protected]
You can also send a hard copy of your submission to:
Economy, Energy and Fair Work