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Brexit: Fresh Perspectives
12 January 2021 - With the EU-UK Trade and Cooperation Agreement of 24 December 2020 ("Agreement"), the UK and the EU have fundamentally changed market access for financial services firms. As of 1 January 2021, UK financial services firms intending to do business in the EU are no longer allowed to make use of the European Single Market and offer their services cross-border based on the European Passport. Therefore, the implications of the Agreement for financial services are more severe than for trade, coming close to the effects of a no-deal (hard) Brexit. Especially the role of London as the main hub of the EU's financial market will change, as services such as the trading in EU shares are shifting to the continent.
06 January 2021 - For the duration of the Brexit transition period, the UK/EU Withdrawal Agreement provided for EU law to continue to apply to the UK. The transition period concluded on 31 December 2020 and, as widely anticipated, the UK and the EU did not agree any ongoing regime for cross-border cooperation on choice of law, courts and enforcement of court judgments, notwithstanding the successful conclusion of the UK/EU Withdrawal Agreement.
30 December 2020 - In this alert, we focus on the key takeaways for trade in goods under the EU-UK Trade and Cooperation Agreement ("EU-UK TCA"). Bilateral trade between the UK and EU will be duty free and quota free provided the relevant origin rules are satisfied. Customs formalities will apply, although certain simplifications will be available at the outset or over time.
29 December 2020 - In a positive development for multinational businesses, the Brexit Trade and Cooperation Agreement provides a temporary solution to allow the continued transfer of personal data from the EEA to the UK without the need for additional compliance measures, while the European Commission considers an adequacy decision in respect of the UK.
EU-UK Trade and Cooperation Agreement announced on Christmas Eve – a nail-biting finish to the negotiations
28 December 2020 - After countless deadlines have come and gone, with a deal 90% done but three intransigent sticking points, on 24 December 2020 the UK and EU finally announced "agreement in principle" had been reached on their future relationship.
The Commission adopts time-limited equivalence decision for UK CCPs: EU financial stability considerations for the supply of clearing services after Brexit
21 October 2020 - On 21 September 2020, the European Commission adopted a time-limited equivalence decision for UK clearinghouses (also referred to as central counterparties ("CCPs")) in view of EU financial stability considerations, which extends market access to UK CCPs for 18 months after the expiry of the Brexit transition period.
The Internal Market Bill, the EU Withdrawal Agreement and the risk of no deal on the EU-UK future relationship
17 September 2020 - The Government's proposed Internal Market Bill has prompted much debate regarding the UK's approach to international law, as well as the internal constitutional architecture of the UK. The EU has raised the prospect of a legal challenge against the UK under the EU-UK Withdrawal Agreement (the "Agreement"). The prospect of a challenge results from provisions in the UK's Internal Market Bill (the "Bill") that the EU considers to be in violation of the Agreement. The challenge would be under the dispute settlement provisions set out in the Agreement.
Prospects of agreement on the future EU-UK relationship by end 2020: Could fish and State aid sink the deal?
31 July 2020 - Over four months into the formal bilateral negotiations between the EU and the UK to reach agreement on their future relationship, is there land ahoy? What are the realistic chances of a deal by the end of this year?
23 January 2020 - Now that the UK Government has a majority in Parliament to pass the EU (Withdrawal) Act before its invocation of Article 50 of the Treaty of European Union expires on 31 January 2020, the threat of the UK leaving the EU without a new trade agreement (a “no deal” outcome) is no longer imminent. However, it cannot be ignored entirely.
28 March 2019 - The United Kingdom (UK) leaving the European Union (EU) will inevitably result in difficulties for businesses using UK content in their products for export under EU Free Trade Agreements, or for UK businesses using EU content under future UK FTAs.
28 February 2019 - One of the multitude of uncertainties currently facing commercial parties potentially affected by Brexit is the effect on their existing commercial contracts, specifically whether the new circumstances of Brexit provide a "get out" from their bargain. Some welcome clarity has now been provided by the English High Court's recent judgment in Canary Wharf (BP4) T1 Limited and others v European Medicines Agency1, although how that decision will be applied in future cases remains to be seen.
7 February 2019 - The House of Commons recently rejected the Withdrawal Agreement. While the UK Parliament is still debating how to leave the EU, a hard Brexit remains an option. To prepare for this possibility, the UK, EU Commission and EU27 have taken measures to minimize disruption in various areas. The need for regulatory changes depends on whether the UK will leave with or without a deal. In the event of a no deal, the German Government recently proposed a Draft German Brexit Act which aims to uphold certain aspects of the current passporting regime for UK financial service providers post 29 March 2019.
30 January 2019 - On 29 March 2019, the UK will formally leave the EU unless an extension, or a negotiated solution, is agreed between the UK and the European Commission. There is currently no agreement regarding the UK's status from a data protection perspective and crucially, no agreement concerning transfers of personal data from the EU to the UK. In the absence of an agreement on these issues, or in the event of a "no deal" Brexit, the UK will be considered a "third country". This will create additional compliance challenges for organisations.
30 January 2019 - On January 24, 2019 the Italian Ministry of Economy and Finance ("MEF") published a press release announcing that the Italian government has readied a set of measures necessary to ensure full continuity for financial markets should the United Kingdom leave the European Union without a deal.
Trading activities between UK and German broker-dealers post Brexit – The German regulatory perspective
29 January 2019 - Set forth below is the joint view of the undersigned law firms on the German regulatory position for UK broker-dealers who continue to deal in financial instruments with broker-dealer counterparties based in Germany following a hard Brexit (i.e. no transition period, no equivalence decision for UK investment firms pursuant to Article 47 of Regulation (EU) No 600/2014 (MiFIR)). In this paper, references to German broker-dealers mean any bank or broker-dealer (including German branches of foreign firms) based in and operating from Germany and undertaking the regulated investment ser-vice or activity of dealing on own account (Eigenhandel and Eigengeschäft). References to UK bro-ker-dealers similarly mean any bank or broker-dealer (including UK branches of non-UK firms) based in and operating from the UK and undertaking the regulated investment service or activity of dealing on own account with a German broker-dealer.
14 January 2019 - As the approach of Brexit draws inexorably closer, the continued lack of certainty around what any Brexit withdrawal deal will look like, or indeed whether a deal will be agreed at all, is causing increasing concern among the business community. For the technology sector, and those working on technology-enabled projects, that concern is particularly strong. It spans from issues such as access to high calibre employees, to the impact of Brexit on the complex web of supply chains and existing and future contracts covering the EU and UK, and loss of access to the Digital Single Market.
9 January 2019 - The EU (Withdrawal) Act 2018 requires Parliament to pass a motion approving the withdrawal agreement and the framework for the future relationship between the UK and the EU. This so-called 'meaningful vote' was due to take place on 11 December 2018 but was called off by the Prime Minister the day before, in the face of likely defeat. It has now been confirmed that the vote will proceed on 15 January 2019 (with press reports suggesting that the Government will provide further reassurances on the controversial Irish backstop). But what happens if MPs fail to vote for the deal next week? We look at some of the options.
Updated: 6 December 2018 - As the Withdrawal Agreement is pending in Parliament, the effects of Brexit remain unclear.
3 December 2018 - UK Prime Minister May and the political leaders of the EU-27 have endorsed the draft Withdrawal Agreement that is intended to end the UK's membership of the EU on 29 March 2019. They have also indicated their support for the Political Declaration on the framework for the future relationship between the UK and the EU-27, including on trade, that will apply after the end of a transition period, at the latest by December 2022.
Brexit - Trade in goods under the draft Withdrawal Agreement endorsed on 25 November 2018 by the UK and the EU
28 November 2018 - On 25 November 2018, the EU27 and the UK during a special meeting of the European Council endorsed the draft Withdrawal Agreement as well as a political declaration on the future bilateral relationship, marking an important milestone in the Brexit negotiations. This alert focuses on the effects the draft Withdrawal Agreement (if agreed as such) would have on trade in goods between the UK and the EU27 and between the UK and third countries. At this stage, it is uncertain whether or not the Withdrawal Agreement will take effect on 30 March 2019 as envisaged, as it still has to be approved by both the UK and EU parliaments.
29 October 2018 - Brexit, and the potential impact it may have on the relationship between the UK and EU Member State court systems, has been a catalyst for the emergence of new English law and language international commercial courts and tribunals in EU jurisdictions. Will these pose a threat to London?
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