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04 October 2001

FBE position paper on collaterals




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The FBE claims that both large and small commercial entities should be able to benefit from the provisions of the directive and therefore cannot support the thresholds of € 100 million capital base and € 1.000 million gross assets.
They also propose that only either the collateral provider or the collateral taker should be one of the institutions listed in Article 2.4 of the commission proposal and want to include non-financial institutions companies from the financial markets.
At least FBE claims that the definition of “financial institution under supervision” is imprecise and should be refined and doubts as to the question whether the scope of the directive will cover hedge funds organised as partnerships.
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© FBE


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