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Luxembourg

Banking

Parliament has passed a new law which amends the Collateral Act. It seeks to enhance the legal security of the creditor's position when taking collateral, and to ensure that such collatoral is effective and bankruptcy-remote. Among many other measures, it introduces two new means of perfecting pledges over financial assets.

Capital Markets

A new law introducing a legal regime for dematerialised securities recently entered into force. Inspired by similar regimes in Belgium, Switzerland and France, the law allows securities to be issued in or converted into entirely dematerialised form. The law constitutes a considerable step forward in the establishment of a safe and modern legal framework that facilitates the international transfer of securities.

The new Prospectus Revision Law implements EU Directive 2010/73/EC, which amends both the EU Prospectus Directive concerning the prospectus to be published when securities are offered to the public or admitted to trading and EU Directive 2004/109/EC on the harmonisation of transparency requirements in relation to information about issuers whose securities are admitted to trading on a regulated market.