The Guide on Best Practices for Electronic Collateral Registries has now been published. Download the electronic version here.
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, four workshops in which leading experts and academics in the field participated have been held at Oxford University and at the UNIDROIT Headquarters.
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. Following this workshop, the Working Paper was refined and the latest draft can be accessed using this link.
This Working Paper is presently being refined and will be published at a launch event alongside the 100th Session of the UNIDROIT Governing Council on 22-27 September 2021. To learn more about this event, please email email@example.com.
As the project moves forward, its focus will be shifted towards examining companies’ registries, and then land registries. A fifth workshop is planned in Cambridge on 28 September 2021, alongside the 10th Annual Cape Town Convention Academic Project Conference. Additional information regarding this workshop will be made available 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 firstname.lastname@example.org.