Moveable Transactions Bill passed at Holyrood
MSPs have passed the Moveable Transactions (Scotland) Bill, which essentially implements the Scottish Law Commission’s Report on Moveable Transactions.
Following its stage 3 and final debates, members unanimously voted in favour of the bill, which will make it easier for businesses to raise finance against their assets, including intangibles such as intellectual property. It also introduces a new register of assignations, to assist transactions in debts owed to businesses.
The bill has been amended in a number of respects from the Commission’s proposals, among them as regards the new statutory pledge. Individual consumers will not be able to grant this security, following concerns expressed by Citizens Advice Scotland and money and debt agencies. Individuals can now only do so if acting in the course of a business or the activities of a charity or unincorporated association. To further protect ordinary household goods, the minimum monetary value of assets that can be pledged has also been raised to £3,000.
Opening the final debate, Public Finance Minister Tom Arthur said the ambition was to have the new registers up and running by summer of 2024.
For the Conservatives, Jeremy Balfour welcomed the bill but called for further work so that financial instruments could also be covered – “one of the big areas that the legislation has to cover”.
Winding up later, the minister added: “It is clear that cheaper and less risky access to finance will provide a boost to [private sector] businesses, not just in terms of survival and making ends meet, but in terms of development and growth, by improving the facility and the ability for businesses to innovate and expand. Anything that can be done to improve the environment in which business in Scotland operates should be welcomed. Although the bill is legal and specialist, it is intended to deliver real and practical help on the ground to businesses throughout Scotland.”