Preparing for the end of the Brexit transition period – ten points relevant to mainstream debt capital market issuance
06 noviembre 2020
Whilst Brexit formally happened when the UK left the European Union (EU) on 31 January 2020 (exit day), it has been treated as a Member State under Union law during the transition period established by the EU-UK Withdrawal Agreement.
The transition period is scheduled to end on 31 December 2020, but it is still unclear whether the EU and the UK will reach a free trade agreement governing the future relationship. Even if there is success on this front, the UK is still expected to leave the single market on 31 December and any free trade agreement is unlikely to have a tangible effect on the mainstream debt capital markets. The points that parties considered ahead of a potential no-deal Brexit previously will again become relevant.
In light of this (and as an update to our previous publications), we set out below a high-level discussion of ten points for action and issues for consideration to assist issuers and other participants in the mainstream debt capital markets in preparing for the end of the transition period. As indicated in relevant places below, further developments are expected and we anticipate updating this publication to reflect those. Whilst many of the points below will apply equally in relation to covered bond and structured finance transactions in general, there will also be additional points to consider in those contexts which we do not cover in this publication.