Security interests

As of January 1, 2023, the formalities for the registration, change and cancellation of liens and pledges over intangible movable property will have to be carried out in a single register called the “register of security interests over moveable property and other related transactions”.

This register was created by Decree dated December 29, 2021, with the aim of simplifying the rules governing the publication of security interests over moveable property, which until now varied according to the type of security interest concerned.

A chapter dedicated to this register has been incorporated into the French Commercial Code by the aforementioned Decree, and provides a number of clarifications.

As the reform of French legal provisions governing security interests is about to come into force, the Legal High Committee for Financial Markets of Paris has just published a report on the pledge of financial securities in the European Union.

The reform of French legal provisions governing security interests, initially scheduled for May 2021, should finally be enacted by September 23, 2021 and enter into force on January 1, 2022. It will be carried out by way of an Ordinance, pursuant to the authorization given by the legislator to the Government under the so-called PACTE Law of May 22, 2019.

In the wake of the reform already carried out in 2006, the 2021 reform shows a clear desire to simplify and modernize French legal provisions governing security interests.