Brexit negotiations - Deal or No Deal
London, 16 November 2020 - Commentary from Charles Brasted, partner and Head of the UK Global Regulatory practice at Hogan Lovells.
Charles Brasted said: "Deal or no deal – many are waiting to hear the outcome of EU-UK negotiations. But the outcome is not binary. We know that no deal will be comprehensive. The scope of any deal, and the extent to which it pushes off the detail to later, will determine how much will change on 1 January.
"One thing that we know will change is how many rules are interpreted and applied in the UK.
"Until now, the process of the UK leaving the EU has had very little direct impact on the law and regulation applicable in the UK. During the implementation period under the Withdrawal Agreement, EU law – which is currently relevant in a wide range of legal contexts, from financial services regulation to employment law – has largely continued to apply in the UK as before, despite the UK no longer being an EU Member State. This will change at the end of 2020.
“Vast amounts of previously EU-derived law and regulation in the UK will be on a new legal footing from 1 January 2021 and potentially open to reinterpretation in its new post-Brexit context. Businesses in the UK whose operations are currently affected by EU law should take notice and be prepared to manage the risks and capitalise on the opportunities that could arise from this legal uncertainty. Any area of law, regulation or policy in the UK previously touched by EU law, is potentially affected. Businesses and their advisors cannot assume that familiar laws and rules will not become faux amis."