BREXIT ET AL Steven A. Frieze

BREXIT ET AL Time line The UK officially leaves the EU on 29 March 2019. However, transitional arrangements will apply so that, in effect, the UK leaves on 31 December 2020.

BREXIT ET AL Politics The UK has already enacted that all EU legislation directives will become part of UK law unless and until they are changed. This means that even after 2021 the UK will, by UK law, still adhere to the EU legislation but will the EU recognise the compliance of the UK to UK law after that date?

BREXIT ET AL Relevance of new law to debt collection Judgment Regulation 2012 European Enforcement Order Regulations 2004 EU Regulation on Insolvency Proceedings 2015

BREXIT ET AL The Future Will EU Member States recognise the legal actions based upon what were the EU Regulations? Reciprocity? What about changes to EU law made after 2021?

BREXIT ET AL What other Rules and Regulations could apply? Lugano Convention 2007 The EU, Iceland, Norway, Denmark and Switzerland – but not EU Member States themselves Administration of Justice Act 1920 Part II (UK) All ex-dominions of the UK (52 countries) excluding Australia, Canada and Tonga

BREXIT ET AL What other Rules and Regulations could apply? Foreign Judgment Reciprocal Enforcement Act 1933 Austria, Belgium, France, Germany, Israel, Italy, The Netherlands, Norway, Surinam, Tonga Plus Australia, Canada, India and Pakistan But it depends on reciprocity Hong Kong is no longer part of this list but Gibraltar now is

BREXIT ET AL Practical Example 1 Creditor based in Germany, Debtor based in England. Until 2021, Creditor has a choice: Sue in Germany and obtain a judgment and then enforce it in the UK under the Judgment Regulation; or Issue an EEO, assuming no defence, then proceed to enforcement via an EEO in the UK After 2021 - the same options will apply until the UK repeals the EU Rules and Regulations it has adopted into UK law

BREXIT ET AL Practical Example 2 Creditor based in England, Debtor based in Germany. At present, the Creditor has two options: Sue in the UK, obtain judgment and then seek to enforce in Germany pursuant to the Judgment Regulation; or Issue an EEO, assuming no defence, proceed to enforce via EEO

BREXIT ET AL The Future As far as the UK is concerned, the EU Rules and Regulations still apply but will Germany recognise an EOP for the UK or allow an EEO to be issued?

BREXIT ET AL Insolvency The EU Regulation on the Recognition Enforcement of Insolvencies will still apply in the UK until 2021 But will the EU Member States recognise any UK insolvencies after 2021 even though the EU Regulation on insolvency proceedings will still be part of English law under the Cross Border Regulations on Insolvency Proceedings 2002, but these regulations apply not only because of the EU Regulation but because of the UNCITRAL Model Law which the UK has adopted and some other countries have as well.

BREXIT ET AL Insolvency The main element is the acceptance of jurisdiction over an insolvent entity if its COMI is based in the country where the proceedings are commenced

Questions? Steven Frieze Consultant | Insolvency and International Debt Recovery Unit E: steven.frieze@wardhadaway.com T: 0113 205 6776