Given the current parliamentary turmoil, Whitehall is proceeding at pace with a multitude of regulations, guidance and policies to prepare for a “no deal” Brexit – the consequence of leaving the EU on 29 March 2019 with no transitional arrangement in place or the prospect of a future relationship secured. A large number of statutory instruments are being prepared that introduce regulations to “address failures of retained EU law to operate effectively or address other legislative deficiencies arising from the UK’s withdrawal from the EU." This will provide “legal and operational certainty” – so we are told.
As 29 March 2019 approaches and the prospect of a ‘No Deal’ Brexit looms, an increasing number of European clients living in England are asking if they should issue divorce proceedings in England now to try and secure the English jurisdiction before Brexit. We have seen this trend since the Referendum on 23 June 2016.
On 20 December 2018, the US Department of Commerce issued updated standards of compliance for participants in the EU-US Privacy Shield Framework (“Privacy Shield”) to continue receiving personal data from the UK in reliance on the Privacy Shield after Brexit (which is due to take place on 29 March 2019). By way of a reminder, Privacy Shield is a framework for protecting the fundamental rights of anyone in the EU whose personal data is transferred to the United States for commercial purposes.
With the UK due to leave the EU on 29 March 2019, UK Parliament is working towards creating new regulations to ensure that the UK’s data protection standards will be equivalent to EU law post-Brexit. The UK would use this as the basis for securing an adequacy decision from the European Commission meaning that our legal framework is deemed to provide adequate protection for individuals’ rights and freedoms over their personal data. As discussed in our previous blog, this would facilitate cross-border transfers of personal data and business continuity as the UK aims to trade with the single market on equal terms.
As 29 March 2019 edges closer with an ever increasing possibility of the UK leaving the EU without a deal, research suggests that there has already been a marked increase in UK registered companies seeking to complete cross-border mergers with companies registered in other EEA states prior to exit day.