Those with concerns about the draft Business Contract Terms (Assignment of Receivables) Regulations 2017, laid before Parliament in September, will no doubt be unsurprised to hear that the Regulations have now been withdrawn, presumably with instructions to return to the drawing board.
Our recent blog post highlighted concerns with the Regulations which were heavily criticised, including by the City of London Law Society. The intention behind the Regulations was a good one, to improve access to finance for SMEs by removing problems associated with clauses prohibiting or restricting assignment of receivables. However, there were a number of uncertainties arising as a result of how they were drafted and the lack of consultation on some significant changes to earlier proposals.
We await further information as to when, or if, a revised version of the Regulations can be expected.
This blog post was written by Joanna Belmonte, for further information, please contact:
Joanna Belmonte, senior associate and PSL, Banking & Finance
T: 0161 836 7809