The Delegated Powers and Law Reform Committee, who are responsible for scrutinising the Moveable Transactions (Scotland) Bill in the Scottish Parliament, are seeking views on the Bill. The Consultation, which opened on 30 June and runs until 6 September 2022, follows on from the Economy, Energy and Fair Work Committee's inquiry into and call for views on the proposed reforms to moveable transactions in Scotland in 2020, to which we submitted a response.

The Committee's consultation questions are:

1. Do you agree that the law covered by the Moveable Transactions Bill (raising finance on moveable property like cars, machinery or intellectual property) should be reformed?

2. Have difficulties raising finance on moveable property in Scotland affected you or your business? If so, what impact has this had for you?

3. The Bill proposes a dual system of working, so it would be possible to use the registers created by the Bill or the traditional legal framework to create securities over moveable property or transfer ownership of obligations. This means that the registers will not be comprehensive. It is argued that this approach ensures that those who prefer existing ways of working can continue to use them. Do you think this approach is justified?

4. Do you have any concerns about the interaction between the new security over moveable property – which will be created by registration in the Register of Statutory Pledges – and traditional pledge, which involves delivering moveable property to the creditor? Are there any circumstances in which businesses or individuals might wish to continue to use existing methods of raising finance over moveable property?

5. The Bill contains detailed provisions on how the registers will be set up and searched. Do you have any suggestions for improving the approach set out in the Bill?

6. The proposals in the Bill would apply to consumers as well as businesses. Do you think there are enough protections in place for consumers?

7. Do you have any other comments on the Bill or this area of policy?

Next steps

We fully support the proposed reforms which will modernise Scots law on moveable transactions, improve access to finance for Scottish businesses and level the playing field for UK borrowers. We will respond to this latest consultation, to support the Bill's important and much-needed reform proposals, and would strongly encourage others to do likewise to demonstrate the importance of the changes to Scotland's business community.

Responses can be submitted via the Scottish Parliament's website here.

Contributors

Lindsay Lee

Senior Associate

Alan Knowles

Partner

Bruce Stephen

Head of Banking and Financial Services & Partner