CROSS-BORDER INSOLVENCIES AFTER BREXIT: CHALLENGES AND RECOMMENDATIONS

Abstract

The UK’s approach to cross-border insolvencies is likely to face a number of challenges when it leaves the EU in the next few years. At the point of Brexit, should there be a clean break away from the EU legal frameworks, the UK will have to be prepared to address any shortcomings that may occur. As a priority, it would be in the interest of the UK to remain party to a number of cross-border agreements in order to protect its commercial and financial position in Europe. To ensure that this could be achieved, much would need to be made of the UK’s relationship with the other member states of the EU. This would be vital since the success and predictability of cross-border insolvencies rely heavily on the legal cooperation between the member states, along with each country providing recognition of proceedings to allow an orderly cross-border insolvency system. It is therefore imperative that the UK takes preliminary steps to explore the impact that Brexit could have on cross-border insolvency law.

To this end, the article will consist of three parts. First, the existing legal framework will be explored to identify the relevant issues that would need to be addressed in any future cross-border model. Second, the influences that have helped to shape the law will be explored to determine whether the challenges that face the UK post-Brexit could be adequately addressed. Third, the article will address some of the challenges that the UK could face before proposing recommendations.