The Financial Conduct Authority (FCA) has published a second consultation paper (CP18/36) on amendments to the FCA Handbook to take account of Brexit. The Government has also published a bill on implementing legislation that has been adopted by the EU but has not come into effect on Brexit day, including the remaining provisions of the Prospectus Regulation (EU 2017/1129). Continue reading
Month: November 2018
Paul Butcher and Tom Henderson have published an article in FERMA/AIRMIC’s joint Brexit Newsletter advising risk management professionals of some of the key matters that they will need to consider to prevent a Brexit-related “no deal” crisis. Given it remains uncertain whether the UK will enter a transitional arrangement with the EU lasting until end 2020 or exit the EU with “no deal” it is important that risk professionals implement strategies to address the risk of a “no deal” Brexit.
To read the full article, please click here.
The post below was first published on our Litigation blog
Over the past couple of weeks, the government has published the final text of the draft Withdrawal Agreement setting out the arrangements for the UK’s withdrawal from the EU on 29 March 2019 and the draft Political Declaration on the future relationship between the EU and the UK. This is therefore a good opportunity to consider the impact of Brexit from a litigator’s perspective, whether or not a withdrawal deal is reached. (Although the deal has now been approved by EU leaders, it still faces highly uncertain votes in the UK Parliament.) So, what are the implications for English civil litigation?
With a deal
The draft Political Declaration does not contain anything of particular relevance so far as English civil litigation is concerned, focusing instead on matters such as trade and economic cooperation, law enforcement and criminal justice, foreign policy, and security and defence. This may not be seen as surprising, as the issue of civil judicial cooperation is usually dealt with outside of free trade agreements and we understand that the EU and UK did not discuss its inclusion, but it is nonetheless disappointing not to at least reference a shared objective to maintain cooperation in this area.
The draft Withdrawal Agreement is more significant, from a litigation perspective. It preserves various provisions relating to civil cooperation for the duration of a transition period to be established by the agreement, through to 31 December 2020. In particular:
- By article 66, current rules on applicable law in contractual and non-contractual matters under the Rome I and Rome II Regulations (Regulations 593/2008 and 864/2007) will apply to contracts concluded, or events giving rise to damage, before the end of the transition period.
- By article 67, current rules on both jurisdiction and enforcement of judgments under the recast Brussels Regulation (Regulation 1215/2012) will apply where proceedings are commenced before the end of the transition period.
- By article 68, current provisions relating to service and the taking of evidence (under Regulations 1393/2007 and 1206/20011) will apply where the relevant document for service or request for the taking of evidence was received before the end of the transition period.
After the end of the transition period, how these matters are to be dealt with will depend on what arrangements (if any) are agreed during the transition period. It is to be hoped that, in relation to jurisdiction and enforcement at least, something can be agreed which broadly mirrors the current arrangements under the recast Brussels Regulation or, at a minimum, an agreement can be reached for the UK to participate in the Lugano Convention. The UK government has previously indicated that this is its intention (see here).
Without a deal
If, however, the UK leaves the EU on 29 March without a deal, there clearly will not be time to put in place any such arrangements before the UK’s exit. In those circumstances, the position will be as summarised below. Continue reading
The UK Government has released a number of documents that aim to aid understanding of the Withdrawal Agreement and the Political Declaration on the future relationship and support parliamentary assessment of the deal. These materials have also been laid before Parliament. Continue reading
During the special summit held on 25 November 2018 the European Council has approved the text of the Withdrawal Agreement and the Political Declaration on the future UK-EU relationship, released on 14 November 2018 and 22 November 2018, respectively. Now that the European Council has formally endorsed both documents, the deal needs to be passed by the UK Parliament in a “meaningful vote” expected to be held in the first half of December. Continue reading
Euroclear, one of the world’s largest securities depositories, confirmed earlier this year its plan to move its holding company from the UK to Belgium in preparation for the UK’s exit from the EU. The High Court has now sanctioned a scheme of arrangement transferring all shares in the English clearing services company to Euroclear Holdings SA, a Belgian company, in order to put that plan into effect: In the matter of Euroclear Plc  11 WLUK 273 Continue reading
The long awaited draft Political Declaration on the future relationship between the EU and the UK which will “accompany” the draft Withdrawal Agreement has now been published.
We need to point out that it needs to be read together with the Withdrawal Agreement – which forms the baseline which a future agreement must build on.
The PD envisages the negotiation of an ambitious agreement on goods describing it as “comprehensive arrangements that will create a free trade area, combining deep regulatory and customs cooperation, underpinned by provisions ensuring a level playing field for open and fair competition.” Continue reading
A draft version of the full Political Declaration on the framework for the future relationship between the UK and the EU, agreed at negotiators’ level and agreed in principle at political level, has just been published and is available here. With a special European Council on 25 November 2018 expected to discuss and endorse the Withdrawal Agreement and the Political Declaration and the UK Parliament due to have its first vote on the deal as soon as the 6 December, we are hosting a webinar on Wednesday 28 November 2018, 1.00 – 2.00pm GMT to discuss: Continue reading
On financial services, the final political declaration contains essentially the same three points as in last week’s outline political declaration (the implications of which were discussed in our blog post of 15 November, available here), although there is some limited further clarification. The three points on financial services are copied below with new substantive additions underlined: Continue reading
Updated*: Official version of the final draft of the Political Declaration on the Future UK-EU relationship has been published by the UK Government here.
The texts of the final draft document and the leaked version released earlier are identical.
A near final draft version of the full Political Declaration on the framework for the future relationship between the UK and the EU leaked earlier this morning.
The text is available here.