Brexit impact on financial agreements & judicial cooperation

Brexit impact on financial agreements and judicial cooperation in commercial matters

News

21-01-2021

In this Q&A we first outline the impact of Brexit on (i) the choice of English law and (ii) the submission to the jurisdiction of the English courts in existing and future contracts between professional parties. In addition, we address the impact of Brexit on (iii) the recognition and enforcement of English courts’ judgements in Belgium, as well as (iv) arbitration clauses.

Over the years London has established itself as the bastion of European finance setting the standards for financial contracts often governed by the laws of England and subjected to the jurisdiction of the courts of England. As a consequence of the withdrawal of the UK from the EU, known as Brexit, which is effective as of 1 January 2021, the UK is no more an EU Member State but a third country. While everything hinted that there would be a hard Brexit, the EU and the UK unexpectedly reached an agreement on 24 December 2020, just a week before the end of the transition period. From now on, the “Trade and Cooperation Agreement” (the TCA) is the Treaty that will govern the relationship between the EU and the UK. Unfortunately, the TCA remains silent on judicial cooperation in civil and commercial matters.