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 the performance of existing financial contracts would continue or whether Brexit would make their performance illegal, impractical or impossible in some way. This paper takes an in-depth look at the question of the continuity of legacy contracts and highlights the legal uncertainty which will arise if there is no clarity as to the future of the U.K.-E.U. relationship post-Brexit. The FMLC also examines some of the ways by which these issues might be mitigated, both by firms themselves and through legislative action.
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