At the Brexit cliff-edge

The United Kingdom is due to leave the European Union this month, but the political ructions over the terms on which it will do so are going down to the wire. Michael McKee and Marina Troullinou discuss the regulatory implications of Brexit for the financial services community, both in the immediate and longer-term.

Michael McKee (michael.mckee@dlapiper.com) is a partner at law firm DLA Piper, and Marina Troullinou is a member of his team.

Navigating through the complexities of Brexit has been a challenge so far. Many financial services firms are required to prepare for all possible eventualities, amid political uncertainty and despite the tight timeframe. Following the rejection of the proposed withdrawal agreement of 25 November 2018 (Withdrawal Agreement) by the UK Parliament, several scenarios remain open, including postponing the exit date to renegotiate a new deal. Without an alternative solution, the default position is that on 29 March 2019, when article 50 of the Treaty on European Union expires, the UK will leave the EU without a deal. At the same time, there is still considerable uncertainty with regards to the future trading relationship between the UK and the EU as well as the conditions for market access.