Thomas J. Reid is Managing Partner of Davis Polk & Wardwell LLP. This post is based on a Davis Polk publication by Mr. Reid. Additional posts on the legal and financial impact of Brexit are available here.
On June 23, 2017, we passed the one year mark since the referendum on the UK’s membership of the EU. Although certainty on the eventual consequences of that decision is in short supply, the UK and the EU finally began the Brexit negotiation process in Brussels. The unexpected result of the June general election in the UK (where the ruling Conservative Party lost its majority in the House of Commons) means that the UK negotiating team begins the Brexit process without the clear mandate that had been sought by the UK Prime Minister. It is not yet apparent how the consequent lack of political stability in the UK will affect the UK’s position in the negotiations. In this post, however, we focus on the EU side of the negotiating table in relation to financial services.
