Morrison & Foerster senior counsel Howard Morris discusses the British Parliament vote to rule out the possibility of leaving the European Union without a withdrawal agreement, setting up another vote as to whether to push back the March 29th departure date to buy more time for a deal in the Law360 article entitled, “MPs Rule Out No-Deal Brexit Too Late For Corporate Britain.”
Prime Minister Theresa May’s deal, which she insists could still be resuscitated despite its rejection by MPs, had been cautiously welcomed by businesses because it would have provided a transition period until the end of 2020. Financial firms also hoped it would help Britain achieve equivalence deals with the EU under its securities rulebook, the Markets in Financial Instruments Directive.
Morris said, “Until the U.K. leaves, the European Securities and Markets Authority is unable to rule on ‘equivalence’ of the U.K. regulation, a key means by which, under MIFID II and other regulation, the U.K.’s financial services businesses can continue to do business in the EU. European institutions are pressing for early resolution of these important questions.”