Any firm that carries out business between the UK and the European Economic Area (EEA) is likely to be affected by a no deal Brexit. If you are such a firm, you should be considering what this means for you and taking steps to mitigate – or potentially to take advantage of – the situation. This isn’t just good business sense: directors and other fiduciaries have a duty to plan for foreseeable risks and may be held to account if they fail to do so to the detriment of their company’s business. If you have not done so already, you should consider forming a working group of senior colleagues across business lines to consider operational, regulatory, tax, and other business issues and to complete a gap analysis of the impact of a no-deal Brexit on your business. This gap analysis can be used to inform the development of your action plan to mitigate no-deal Brexit-related risks.
Specific action points may include:
You should also consider whether your firm transfers personal data between the UK and the EEA. In a no-deal scenario, the UK Government has stated that it will continue to allow the free flow of data from the UK to the EEA after 29 March 2019. However, the position for transfers of personal data from the EEA to the UK has not been made clear. As a consequence, you may need to consider the extent to which your business is reliant on transfers of personal data (for example because of where your data centres are located) and what risks you may be exposed to if there is no solution to permit the continued transfer of personal data between the EEA and the UK.
Our cross-disciplinary team of experts is on stand-by to help you navigate through this period. Please contact us if you would like to discuss further how we may be able to help you address the challenges that may be presented by a no-deal Brexit.
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