Brexit – Implications For Securitisation & Debt Capital Markets Transactions Involving Irish SPVs

On 23 June 2016, the UK took the historic decision to leave the European Union. In general, from an Irish perspective, it was an unexpected and regrettable outcome for our closest neighbour and most important trading partner. While the impact of Brexit is expected to be profound for the Irish economy, the departure of the UK from the EU will bring opportunities for Ireland, particularly for the Irish financial services industry.

However the full impact of Brexit on the European securitisation and capital markets cannot be considered until the UK government agrees how it will achieve an orderly exit with the EU. UK managers, arrangers, sponsors and originators are already using Irish vehicles as platforms for structured products and capital markets transactions and can continue to do so under the current regime if and until the formal exit actually occurs. As such, it is "business as usual" until the British government triggers Article 50 and commences negotiations on