08.08.2018

FMLC: 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 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 Financial Markets Law Committee, an educational charity based in the City of London dedicated to the sound administration of financial law, also examined some of the ways by which these issues might be mitigated, both by firms themselves and through legislative action.

Source: FMLC

Related articles

  1. This complements the previous statement on the use of UK data in MiFID II calculations.

  2. Talent pool has been drained by fewer EU tech graduates coming to the UK.

  3. From The Markets

    EuroCCP And Brexit

    EuroCCP will provide post-trade services to EU-based entities of three UK trading venues.

  4. The firm is bringing in new senior regulatory staff to expand its existing UK team.

  5. These opinions may change depending on the final timing and nature of Brexit.