On Thursday 23 June 2016, the United Kingdom voted to leave the European Union.  On 29 March 2017, HM Government notified the E.U. of the decision to withdraw under Article 50 of the Treaty on European Union, and has begun to negotiate a withdrawal agreement that will structure their future relationship.

Areas of legal uncertainty of relevance to the wholesale financial markets have emerged during this process.  This page contains information about the FMLC's work to identify and analyse the legal issues resulting from Brexit—including updates from the High-Level Advisory Group set up to advise the Committee on its Brexit-related work—and links to relevant presentations and publications.  Announcements and reports are arranged in a timeline for eays access; click here for an uncurated list of all FMLC content related to Brexit.

 

Brexit: where we are now

The next stage of the Brexit process is anticipated to be the publication of [draft] statutory instruments by HM Government under the powers conferred to it by the European Union (Withdrawal) Bill (once enacted) to enable the proper functioning of E.U. laws which have been transposed into the U.K. statute book (including any corrections to laws that would otherwise no longer operate appropriately once the U.K. has left the E.U.) It has been announced that a significant volume of secondary legislation will be published by HM Treasury in relation to the financial services and, as the end of the Article 50 notice period rapidly approaches, the timeline for any comment or consultation on these drafts is likely to be compressed.

As HM Government undertakes this substantial task over the next few months, the FMLC stands ready to respond speedily to any legal uncertainties which might arise. In its meeting on 31 May 2018, the Committee resolved to meet on an ad hoc basis—in addition to its scheduled bimonthly meetings—should the volume of the draft statutory instruments and gravity of the legal complexities require the Committee’s full attention. The FMLC is committed to ensuring legal certainty for the financial markets through and after the Brexit process and is keen to hear from market participants or representatives of HM Government where its contributions might have most impact.

To draw the Committee’s attention to an issue of legal uncertainty, please write to the Secretariat.

Brexit research/analysis timeline

2018
December 19

“Onshoring” Statutory Instruments Comment Series: Markets in Financial Instruments

This paper considers legal uncertainties arising from the changes proposed by the draft Markets in Financial Instruments (Amendment) (EU Exit) Regulations 2018. The paper is available for download here.
November 29

“Onshoring” Statutory Instruments Comment Series: Investment Funds and their Managers

This paper considers legal uncertainties arising from the changes proposed by two draft SIs key to investment funds and their managers—the Draft Alternative Investment Fund Managers (Amendment) (EU Exit) Regulations..Read More
October 26

“Onshoring” Statutory Instruments Comment Series: Bank Recovery and Resolution

This paper considers legal uncertainties arising from the changes proposed by the draft Bank Recovery and Resolution and Miscellaneous Provisions (Amendment) (EU Exit) Regulations 2018 (the “draft BRR SI”) which..Read More
August 6

Report: The Robustness of Financial Contracts after Brexit

Since the U.K. voted to withdraw from the E.U., a question which has been raised by many market participants and observers, in the context of a hard Brexit, is whether..Read More
July 31

“Legacy” Level 2 E.U. Legislation and Retained Law

The FMLC has sent a letter to the Ministry of Justice, drawing attention to the question of the status of Level 2 E.U. legislation in the event the relevant Level..Read More
July 12

New Publication: Legal Uncertainties in the Provision of Insurance Business after Brexit

As the U.K. and E.U. continue to negotiate their relationship in the context of the U.K.’s impending withdrawal from the E.U. (“Brexit”) and as U.K. insurers with clients in the..Read More
June 29

Coordinated Response to Brexit-related Secondary Legislation

HM Treasury has announced it will publish a significant volume of secondary legislation under the European Union (Withdrawal) Act 2018 in relation to the financial services. As the end of..Read More
May 31

Preparing for publication of [draft] statutory instruments by HM Government

The next stage of the Brexit process is anticipated to be the publication of [draft] statutory instruments by HM Government under the powers conferred to it by the European Union..Read More
March 19

Letter to MoJ on the Withdrawal Bill

On the recommendation of members of the FMLC’s Advisory Group on Brexit, the FMLC wrote to the Ministry of Justice to draw attention to potential legal uncertainties arising from provisions..Read More
January 18

Winter Colloquium

The FMLC held a Winter Colloquium on 18 January 2018 the topic of the continuity of financial contracts post-Brexit at the Bank of England. Four speakers articulated a range of views..Read More
2017
December 22

FMLC report on WTO rules

The FMLC published a paper on the application and impact of World Trade Organization Rules on financial services in the context of Brexit. Upon the U.K.’s withdrawal from the E.U.,..Read More
November 23

Letter to Ministry of Justice

The FMLC sent a letter to Nic Turner at the Ministry of Justice concerning the publication of a Government policy paper entitled Providing a cross-border civil judicial cooperation framework: a future..Read More
August 30

Letter to the Ministry of Justice

Following the publication of the European Union (Withdrawal) Bill 2017 (the “Withdrawal Bill”), the Ministry of Justice invited the FMLC to provide feedback.  To this end, a letter was sent..Read More
August 30

FMLC report on cross-border insolvency

The FMLC’s latest paper on issues of legal uncertainty arising from Brexit was published.  In the paper, entitled Issues of Legal Uncertainty Arising in the Context of the Withdrawal of the..Read More
July 13

FMLC report on legal uncertainty arising from Brexit

The FMLC’s paper on issues of legal uncertainty arising from Brexit was published.  In the paper, entitled Issues of Legal Uncertainty Arising in the Context of the Withdrawal of the U.K. from..Read More
July 3

Presentation by Dr Andrea Entner-Koch

For the third-quarter meeting of the FMLC’s High Level Advisory Group on Brexit, held on 3 July 2017, the FMLC was delighted to welcome, as keynote speaker, Dr Andrea Entner-Koch,..Read More
June 1

E.U. Emissions Trading Scheme/Allowances Working Group

The FMLC resolved to establish a Working Group to consider issues of legal uncertainty relating to the E.U. Emissions Trading Scheme (“E.U. ETS”) and the European emissions allowances (“EUAs”) in..Read More
March 3

Spring Colloquium

As a part of its ongoing work on the legal complexities arising from the U.K.’s withdrawal from the E.U., the FMLC organised a Spring Colloquium featuring a keynote address by..Read More
February 14

Scope of WTO rules Working Group

Following announcements from HM Government regarding the U.K.’s future relationship with the E.U., the Financial Markets Law Committee resolved to establish a Working Group to consider legal uncertainties in relation..Read More
January 31

Brexit: Shape & Impact Presentation

FMLC CEO Joanna Perkins presented at an event organised by the Université Pantheon Sorbonne on the topic of the U.K.’s impending withdrawal from the E.U.  The presentation contains an overview of various models for the future..Read More