On 23 June 2016, the UK shocked the world, and perhaps itself, when it voted in favour of a “Brexit” from the European Union. While the referendum result has brought significant uncertainty to the financial services sector, the Financial Conduct Authority (FCA) has made it clear that, from a regulatory perspective, it is “business as usual”. Indeed, it is clear that firms cannot afford to stand still in the wake of the referendum result, since financial regulation has, as always, continued to evolve.
Earlier today, the High Court of Justice ruled that the U.K. government does not have the constitutional capacity to trigger the U.K.'s withdrawal from the European Union without further primary legislation being passed. This decision is likely to delay, potentially significantly, the filing of the U.K.'s Article 50 notice with the European Council, further extending the uncertainty over the timing and the terms of the U.K.'s exit from the European Union (“EU”).
The EU Market Abuse Regulation (MAR), which came into effect across the EU on July 3, is a timely reminder in the aftermath of the UK’s Brexit referendum, that, for the time being at least, the UK remains a member of the European Union and that EU financial services legislation continues to have effect.
As an EU regulation, MAR has direct effect in each member state of the EU. MAR will apply in the UK for so long as it remains a member of the EU (and potentially may continue to apply in the event of a negotiated “soft-Brexit”).
The implications of the Brexit referendum are likely to be profound for the investment management industry. Please click here to listen to a presentation, delivered via conference call, by Akin Gump Strauss Hauer & Feld LLP’s UK/EU investment management and financial regulatory teams on which they discussed the immediate ramifications of the referendum and provided a roundup of the constitutional, legal, market and regulatory announcements made in the hours following the announcement of the result.
The speakers on the call are:
MiFID II’s Passport for “Third Countries” and the Possibility of Continued Access to the EU Market for UK Firms
The decision to hold a referendum as to whether the United Kingdom (UK) should remain a member of the European Union (EU) introduced the term “Brexit” into the global political lexicon. Now that the UK has voted to leave the EU, the term has spawned new variations: will the UK’s departure be a “soft-Brexit” or a “hard-Brexit”?
Akin Gump Strauss Hauer & Feld LLP is pleased to announce the launch of Beyond Brexit.
Beyond Brexit will serve as a knowledge hub to provide resources and information on the regulatory and policy impact of Brexit, the result of the EU Referendum.
As developments unfold, we will continue to provide key resources of interest to our clients. We encourage you to subscribe to Beyond Brexit to ensure that you do not miss any of our postings. If you would like to subscribe to receive email digests of our posts, please click here.
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