The Guide on Best Practices for Electronic Collateral Registries has now been published. Download the electronic version here.
Purchase the hard copy of the Guide for 50 Euros:
Project Background
Electronic registries are the most important element of systems that collect, store, disseminate and establish rights in data or property represented by that data. The incorrect use and mismanagement of these registries can result in liability and legal uncertainty that translates to substantial economic and commercial damages.
The Cape Town Convention, which, through its various Protocols establishes electronic registries for different types of high value mobile assets, sets out a standard for the responsibility of registrars of modern electronic registries with the only defence being that of having followed ‘best practices’ in registry design, operation and back-up. However, ‘best practices’ in electronic registries is not defined by the Convention, nor have international parameters been developed more generally in relation to electronic registries.
The project on Best Practices in the Field of Electronic Registry Design and Operation (BPER) seeks, through an inter-disciplinary approach, to study and link elements of the ‘best practices’ standard and to develop a framework from both legal and technical angles. The project is run by the Cape Town Convention Academic Project, in partnership with the UNIDROIT Foundation, Aviareto, and the Aviation Working Group. So far, seven workshops in which leading experts and academics in the field participated have been held at Oxford University, the UNIDROIT Headquarters, and the University of Cambridge.
The first of these workshops set out the issues that should be discussed within this project:
a) Classification of Global Electronic Registry Systems;
b) Methods, Best Practices, and Technologies in Global Electronic Commerce;
c) Future Application of Block chain and Related Technologies;
d) Ensuring Trust: Authentication, Data Integrity and Application Security;
e) Digital Evidence: Disclosure, Discovery & Admissibility.
The second workshop made progress towards establishing a definition of electronic registries, identification of critical performance factors, risk management of those factors; and the usefulness of technical standards.
The third workshop, building upon the first and second project workshops, focused upon the application of the best practice standards developed by the project to the design and operation of electronical collateral registries. Discussion was based on an extensive case study prepared by Dr Marek Dubovec, Executive Director of the Kozolchyk National Law Center. Participating experts discussed which Critical Performance Factors (CPFs) were particularly relevant for collateral registries and shared practical experiences in relation to the challenges that arise in the design and operation of such registries. The group identified additional CPFs which could be incorporated into the case study and suggested that the CPFs should be further tested against functioning collateral registries.
The working paper on best practices in the design and operation of electronic collateral registries was refined and discussed further at a hybrid fourth workshop held in Rome and on Zoom in September 2020. A report for this workshop can be found here.
This Working Paper was refined and published at a launch event alongside the 100th Session of the UNIDROIT Governing Council on 22-27 September 2021. The Guide on Best Practices for Electronic Collateral Registries is now available online for free online and can be purchased in hard copy here.
In September 2021, a fifth Workshop for the project was organised at the University of Cambridge. It was decided that the Project would shifted its focus onto Electronic Business Registries and would work towards developing a best practices guide for the same. A report for this workshop can be found here.
The sixth Workshop for this project featured a review of a preliminary structure for the Guide on Electronic Business Registries, as well as discussions on questions of scope, differences between business registries and collateral registries, and the structure of the guide on business registries. A report for this workshop can be found here.
At the seventh Workshop for this project, the experts reviewed a detailed outline of the prospective guide, and analysed the existing Critical Performance Factors, with the purpose of identifying the adaptations needed in the context of business registries, as well as discussing the proposed additional Critical Performance Factors. A full report for the Workshop will be published in the coming weeks.
The establishment of best practices guides will ensure a greater level of stability and security to industries in which e-registries play an important role. The UNIDROIT Foundation is presently seeking contributions for this project in order to enhance the research being done and to involve a greater number of experts and professionals in the discussion.
For enquiries about the project, including proposals for involvement, please contact ctcap@unidroit.org.