Q&As

What is the Retained Recast Regulation on Insolvency?

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Published on LexisPSL on 07/12/2020

The following Restructuring & Insolvency Q&A provides comprehensive and up to date legal information covering:

  • What is the Retained Recast Regulation on Insolvency?
  • European Union (Withdrawal Agreement) Act 2020
  • During the transition period/implementation period
  • After the transition period: if no deal covering insolvency
  • Summary
  • Useful links

What is the Retained Recast Regulation on Insolvency?

European Union (Withdrawal Agreement) Act 2020

The European Union (Withdrawal Agreement) Act 2020 (the Act) was introduced to facilitate the ratification and implementation of the Withdrawal Agreement (31 Jan 2020) agreed in principle between the UK and the EU on 17 October 2019. For further details on the Withdrawal Agreement, see Practice Note: Brexit—introduction to the Withdrawal Agreement.

The Act contains provisions on various matters, including the implementation period (the term used by the UK or transition period, the term used by the EU; these terms are used interchangeably, see Q&A: In the context of Brexit, what is meant by the ‘transition or implementation period’?). It incorporates several amendments to the European Union (Withdrawal) Act 2018 (EU(W)A 2018), particularly for the purpose of legislating for transition, deferring several provisions from exit day to the end of the implementation period.

During the transition period/implementation period

The provisions relating to insolvency are largely unchanged; Article 67(3)(c) of the Withdrawal Agreement (31 Jan 2020) provides that in the UK and Member States:

‘Regulation (EU) 2015/848 of the European Parliament and of the Council shall apply to insolvency proceedings, and actions referred to in Article 6(1) of that Regulation, provided that the main proceedings were opened before the end of the transition period.’

The effect of the Withdrawal Agreement (implemented by the Act) is to preserve the

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