Insurance Regulatory Update, June 2016

IN DOMESTIC NEWS...

BREXIT: THE AFTERMATH

On 23 June, the United Kingdom voted to leave the European Union by 51.9% to 48.1%. The vote in favour of Brexit does not automatically trigger an exit by the UK from the EU. Instead, it has commenced a long and complex exit process and it will be some time before it becomes clear what form Brexit will take and when it will occur. However, Brexit does not create a legal vacuum and until the UK formally leaves the EU, EU law will continue to apply to and within the UK. The first step for withdrawal will be for David Cameron or his successor to serve notice on the European Council of the UK's decision to withdraw from the EU under Article 50 of the Treaty of the European Union. It is not yet clear when this will happen but it will trigger the start of a two year negotiation period. When the UK and EU agree the formal Brexit, that agreement will need the support of a qualified majority of EU Member States in the European