Managing partner in Australia Wayne Spanner and managing partner
in EMEA Martin Scott have co-authored an article in The
Australian Financial Review about the risks and
opportunities stemming from Brexit.
You can read more about this issue on our dedicated
Now that the dust has settled on the UK's vote for Brexit,
the extent of the challenges facing British and international
businesses is becoming clearer.
From our conversations with business leaders, regulators and
others, it is clear that among their chief concerns are uncertainty
for the future, the impact on international trade and trading
patterns, how London will evolve as a financial capital, access to
capital markets, consequences for supply chains, data protection,
and the employment status of key employees.
Many of those we have recently met with in London believe it
will always remain the global financial city. But they acknowledge
that there is still a long way to go before the lasting impact
Brexit will have on the financial industry is clear.
Preparation, including a thorough understanding of the legal
risks, is now key. Even though a departure from the EU will take
years to play out (and it's heartening to see that UK Prime
Minister Theresa May is winning support for a significant period of
planning and review before Article 50 of the Treaty on European
Union is triggered) businesses will need to constantly refine their
plans to identify the challenges and opportunities that Brexit may
A quick look at likely impacts on major industries highlights
the enormity of the task at hand. For energy, the UK remains bound
by domestic emissions reduction legislation, but questions remain
about the impact of existing and future EU climate and energy
legislation, including in respect of renewables.
Financial institutions will be concerned about the future state
of regulation, and the impact on the close connectivity of UK and
EU insurance and banking markets.
And in the technology space there are real questions about data
flow and storage from the EU to a post-Brexit UK. The EU Commission
will need to make a call on whether a post-Brexit Britain was a
safe country for the transfer of personal data.
So how does all this affect Australia?
As a start, many of the industry-specific issues flagged above
will be of concern to Australian-based companies with a stake, or a
desire to invest, in those sectors.
The impact on Australian trade in or through the UK, in terms of
business access to the single market in the EU, will also be
pivotal. There are 1500 Australian UK-based companies using the UK
as a springboard into that single market. And 30 per cent of
Australia's exports to the EU are done via the UK. The UK will
be looking to conclude trade treaties with most of its partners
around the world and Australia is one of the first jurisdictions to
have indicated its willingness to enter into these negotiations.
Global law firms should put a trade treaty practice in place to
help clients in this area.
While the Australian economy continues to transition from its
resources focus, the additional pressure points that Brexit will
bring are sure to add complexity and create new risks and
We know Australian boards and general counsel are increasingly
risk conscious. The ability to absorb and mitigate evolving Brexit
risk may end up being crucial to determining who wins and loses
from a post-Brexit world.
To print this article, all you need is to be registered on Mondaq.com.
Click to Login as an existing user or Register so you can print this article.
Following the announcement by the International Atomic Energy Association that Iran has met its commitments under the Joint Comprehensive Plan of Action nuclear deal, Australia has suspended all nuclear-related sanctions against Iran.
PNG has domestic arbitration legislation, but does not provide for the enforcement of foreign arbitral awards.
Some comments from our readers… “The articles are extremely timely and highly applicable” “I often find critical information not available elsewhere” “As in-house counsel, Mondaq’s service is of great value”
Register for Access and our Free Biweekly Alert for
This service is completely free. Access 250,000 archived articles from 100+ countries and get a personalised email twice a week covering developments (and yes, our lawyers like to think you’ve read our Disclaimer).