Regulations to outlaw bans on assignment almost ready
It was almost 3 years ago in December 2014 when the Government announced its intention to bring forward legislation outlawing bans on assignment in commercial contracts.
The original draft Regulations published in 2015 included significant caveats for both supply chain financiers and for “terms giving rise to a duty of confidence.” An extensive consultation process then followed involving both ABFA and groups of businesses from various industry sectors, but matters were delayed by Brexit and other legislative demands.
We now have very good news to report that the latest version of the Regulations has removed both caveats and now provides for outlawing bans on assignment in most commercial contracts.
We have been informed by BEIS that they are content with this form of the Regulations and it has been submitted for parliamentary approval, but as yet there is no definitive word on when such approval is likely to be considered.
We expect to report in more detail on this in the next edition of the Briefing .