Brexit—impact on administration
Brexit—impact on administration

The following Restructuring & Insolvency guidance note provides comprehensive and up to date legal information covering:

  • Brexit—impact on administration
  • The Brexit vote
  • Relevant Brexit Statutory Instruments
  • Jurisdiction to open administration proceedings
  • Cross border recognition of proceedings
  • Other issues arising

The Brexit vote

On 23 June 2016, the UK voted to leave the European Union (EU) by 52% to 48%, with a turnout of 72%, sending shock waves across the markets and economies worldwide (see: LNB News 24/06/2016 1). We look at some of the likely issues for R&I lawyers and professionals relating to the administration process set out in the Insolvency Act 1986 (IA 1986).

This Practice Note is part of a suite of documents considering the impact of Brexit including:

  1. Brexit—impact on Recast Regulation on Insolvency: this Practice Note also considers transitional periods for insolvency proceedings opened prior to exit day

  2. Brexit—impact on winding up

  3. Brexit—impact on company voluntary arrangements

  4. Brexit—impact on schemes of arrangement

  5. Brexit—impact on insolvent credit institutions

  6. Brexit—impact on insolvent insurers

Relevant Brexit Statutory Instruments

Insolvency Brexit Regulations

On 30 January 2019, the Insolvency (Amendment) (EU Exit) Regulations 2019 (Insolvency Brexit Regulations), SI 2019/146 were made under the affirmative procedure for Brexit SIs to address the deficiencies which would arise from the absence of mutual application of the Regulation (EU) 2015/848 Recast Regulation on Insolvency (Recast Regulation on Insolvency) and making consequential amendments (effective in part from 31 January 2019 and fully from exit day) to various legislation including the IA 1986 and the Insolvency (England and Wales) Rules 2016 (IR 2016), SI 2016/1024