Decoding Cross-Border Immigration after Brexit

Impact of Brexit on the Immigration Policy

Immigration is easily one of the most pressing issues faced by the cross-border nations in the wake of Brexit. Britain finally exited the European Union on 31 January 2020, following the transition period, during which the benefits of freedom of movement remained available to the citizens of the UK and EU member states. Citizens of the UK or EU member states who relocated before the expiration of the transition period are allowed to live and work in their country of residence after Brexit. 

However, some necessary may be required to protect the current living and working status in the desired country. On the other hand, individuals considering immigration after Brexit must obtain a work permit, complying with the EU and national immigration rules. Cross border workers, business visitors, and assignees will also experience certain travelling restrictions.

Cross-Border Immigration after Brexit under the Microscope

A policy statement published on 19 February 2020 explained that after Brexit, the free movement of UK and EU member state citizens is to be replaced with a points-based system that will treat the EU and non-EU citizens in the same manner. 

The point-based system is designed to reduce overall migration, give priority to individuals with the highest skills, exemplary achievements, or greatest talents, and enable the UK to take back control of its borders. 

It cannot be denied that the new point-based system will not only affect employees and individuals seeking opportunities in the UK but also represent a major change for employers in the UK and vice versa. Read on to decode cross-border immigration after Brexit based on the skill level. 

· Highly-Skilled Workers 

The “Exceptional Talent” route has been rebranded as the “Global Talent” route to provide access to highly skilled individuals. The route has no cap, which means the UK is all set to welcome the high-skilled workforce. One of the major reforms includes expanding the route to make it more accessible to skilled workers from STEM backgrounds. High-skilled workers can migrate to the UK without a job offer as long as a relevant body endorses them.   

· Skilled Workers 

All skilled workers from the EU are required to obtain a visa, except Irish citizen. Individuals with an Irish nationality may leverage the Common Travel Area. The application process for EU citizens is completely online, with most citizens receiving e-visas. It must be noted that the minimum age for visa application has been increased to 18 years as opposed to 16 years. Moreover, skilled workers must meet a specific requirement, scoring a total of 70 or more points. They must also hold a job offer from an approved sponsor in the country.   

· Low-Skilled Workers      

In an effort to reduce cheap labour induction from Europe, the new policy does not contain a temporary work or general low-skilled route. The decision has received a great deal of attention from the press as well as employers. However, a few avenues are still available to low-skilled workers. For example, low-skilled temporary workers are permitted in the agricultural sector. Youth mobility arrangements are also available, allowing 20,000 young people to migrate to the UK yearly. 

These are some of the major changes pertaining to cross-border immigration after Brexit. For further inquiries regarding immigration to or from EU member states, get in touch or schedule a free consultation to explore your options.   

Practical Steps to Resolve Challenges Faced During Cross-Border Disputes

Resolving cross-border disputes

Disputes and disagreements between parties in the UK and EU member states are inevitable in the wake of Brexit. In most cases, a lot depends on the specific facts, figures, and individual circumstances of the cross-border disputes. Factors such as where the proceedings are issued may play a significant role in conflict resolution. However, the good news is that certain steps can be taken to resolve or at least mitigate the challenges that crop up during cross-border disputes.

Steps to Resolve Challenges Associated with Cross-Border Disputes  

Here are some practical measures that can be taken to minimize the risks accompanying the exit of the UK from the EU.

1.Dispute Resolution Laws

Consider including conflict resolution and governing clauses in contracts to streamline the process of dispute resolution. You may want to specify information like which courts have jurisdiction in the occurrence of a dispute and what laws govern the contract. It is advisable to seek specific advice on the jurisdiction provision in any case. It must be noted that courts in the EU member states recognize English governing law clauses. Therefore, you may want to insert them in your current or future contracts to avoid needless risk in the future.

2.Clause to Oblige Counter Parties to Accept Legal Proceedings in Your Jurisdiction 

When entering a contract with a counterparty that domiciled outside of England or Wales while the contract contains a clause in favour of the jurisdiction in England or Wale, it becomes important to add a clause in the contract obliging the counterparty to hire an agent in your jurisdiction and accept the legal proceedings. Adding the clause and taking these appropriate actions will make sure that in case of a dispute, you are able to serve a proceeding on the counterparty without facing any legal constraints.

3.Specific Advice for Ongoing Disputes 

If you have any ongoing cross-border disputes that did not get resolved during the transition period, it is advisable to seek specific advice from a lawyer to understand how the changes associated with Brexit will affect your cross-border dispute.    

Conclusion

Resolving cross-border disputes during the current volatile environment can be challenging. Moreover, the reforms associated with Brexit may increase the cost and time for cross-border disputes. The most effective approach is to connect with an experienced lawyer to obtain legal advice tailored to meet your individual needs, requirements, and preferences. Contact us today for more information regarding the implications of Brexit on cross-border disputes.  

Cross Border Contracts: Is Brexit a Force Majeure Event?

Is Brexit a Force Majeure Event?

Despite the gradual Brexit process, uncertainty lingers over businesses on both sides of the Brexit border. The true impact of Brexit on the EU-UK trade will inevitably become apparent with time.

Meanwhile, fulfilling the contractual obligations and rights has become increasingly complex for all parties, raising concerns regarding the disastrous results for businesses bound by cross-border contracts. This brings us to the question that everyone has been thinking about – could Brexit constitute a force majeure event? Read on to find out.

The Significance of the Force Majeure Clause

The first thing to understand is that businesses can rely on the Majeure clause only if the initial contract contains a force majeure clause. The primary reason why a force majeure clause is included in the contract is to excuse one of both parties of the contractual obligations in case of certain events beyond the control of the parties. It is crucial to understand that the wording of the clause determines whether it can be invoked for a particular event like Brexit.  

Does a Force Majeure Clause Cover Brexit?

Businesses may be able to invoke a force majeure only if the initial contract includes a force majeure clause. However, it is easier said than done. There are numerous complications and hurdles along the way.

For instance, if the force majeure events are defined as happenings beyond the parties’ consent, invoking the Majeure clause for Brexit will present certain challenges because events are described as outside of a party’s control only if the party has taken all possible steps to avoid the event or at least minimize its effects. If Brexit was a possibility at the time the contract was signed, the parties entering the contracts should have accounted for the risks involved and planned for the potential effects.

Furthermore, even if the exact wordings of the clause mean that the particulate Brexit event falls within the definition of the force majeure, the party seeking to invoke the close Majeure clause must demonstrate that Brexit is the sole reason preventing them from fulfilling their contractual obligations and duties. Demonstrating the effects of Brexit to prove it is the sole reason the party is unable to perform the obligations under the contract can be a challenge.

Even if the contract is deemed less profitable because of currency fluctuation or any other reason associated with Brexit, it does not constitute a force majeure event as long as Brexit does not prevent one or both parties from performing the cross-border contract.      

The Bottom Line        

While it is highly unlikely that the force majeure clause will assist in regards to the effects of Brexit, it ultimately boils down to the precise wordings of the clause used in the cross-border contracts. Get in touch for further inquiries or schedule a free consultation with our international team of lawyers to explore your options.    

Understanding Cross-Border Insolvency Post-Brexit

A puzzle depicting Brexit

The UK-EU Trade Deal left lots of questions unanswered for many law experts and corporations. One of the main concerns was recognising and enforcing foreign insolvency proceedings when there is a cross-border element.

Since EU Insolvency Regulations (EIR) does not apply to these cases, we need to look at other regulations to deal with these situations. Presently, insolvency-related domestic laws of each EU member state will apply to conduct the proceedings further. These change requires additional steps and formal applications to ensure that both countries are on the same page.

Here are a few things you should know:

Recognition of EU Insolvency Proceedings in the UK

The end of the transition period marks the beginning of cross-border insolvency post-Brexit. Any new EU insolvency proceedings seeking recognition and enforcement in the UK will have to adhere to British Cross-Border Insolvency Regulations. That includes adopting the United Nations Commission on International Trade Law (UNCITRAL) Model Law on Cross-Border Insolvency.

At present, only four out of twenty-seven EU member states have agreed to use the UNCITRAL Model Law. These members include Poland, Greece, Romania, and Slovenia. Their acceptance simplifies the rules surrounding recognition and enforcement of cross-border insolvency laws.

Before Brexit, these rules applied to all non-EU insolvency cases that originated outside the UK. The proceedings require a formal court application by foreign officeholders who deal with financial assets in the UK. The request gets thoroughly reviewed to evaluate the ‘insolvent’s main interests’.

After that, the court will provide relevant assistance to support the foreign officeholder. If the foreign insolvency proceedings get recognised as the primary proceeding, the English court will hold their civil proceedings against the debtor. In these situations, the English court grants complete authority to foreign officeholders. That means the insolvency practitioners can freely manage assets present in the UK unless stated otherwise.

Recognition of English Insolvency Proceedings in the EU

The European Regulation on Insolvency Proceedings (the EIR) no longer applies to the UK. That means the EU will not recognise any English insolvency proceedings by default. The UK officeholder must provide relevant evidence to support their case. 

There are multiple ways to acquire recognition:

  • The EU court can initiate a parallel proceeding to verify the evidence and facts of the case.
  • Or, the UK officeholder can send an official request to the EU court to recognise the cross-border insolvency proceedings taking place in their country. 
  • Other EU member states can adopt the UNCITRAL to streamline the process.

The final decision depends on local authorities and laws surrounding insolvency in each EU member state. For instance, Belgium will give you a different verdict than Poland and vice versa.

What Next?

Cross-border insolvency proceedings presents several new challenges for practitioners. The lack of automatic recognition in EU states can inhibit the process. The presence of non-EU insolvency regulations that were used for other countries streamlines the process. These rules and the English court’s eagerness to assist distressed debtors can guarantee a fair resolution.

You can gain more clarity on the legal proceedings revolving cross-border insolvency post-Brexit with strategic alterations in your contracts and claims.

Are you looking for legal advice on cross-border insolvency? Contact us today to schedule a free consultation.

The Legal Implications of Brexit on Anti-Money Laundering

An image of currency to represent anti-money laundering laws

What are the legal implications of Brexit on anti-money laundering laws?

The UK government has yet to specify any significant changes in the AML starting from 2021. We know that the Sanctions and Anti-Money Laundering Act 2018 (SAMLA) and AMLD5 are the benchmarks for these legal proceedings. British corporations have also relied on their EU membership to monitor the illegal exchange of financial assets.

Yet, some of these protocols will get altered in the coming years.

In this article, we discuss the legal implications of Brexit on anti-money laundering (AML) compliance.

Let’s begin.

Amendments in the AML Framework

At present, The Money Laundering Regulations will continue to serve as the primary resource for anti-money laundering cases. 

However, some amendments will be made regarding the UK’s status as a third country for the EU. That means the UK will no longer receive any advantages during UK-EU money laundering cases.

Here are some things to consider: 

1.Financial Action Taskforce (FATF)

 The UK will remain a FATF member and adhere to its rules and regulations.  

2.6th Anti Money Laundering Directive (AMLD6)

English courts will not incorporate the 6th Anti Money Laundering Directive (AMLD6). It feels that the current laws and clauses are taken from AMLD5 already cover the essential aspects of anti-money laundering rules.

3.EU as a Third Country 

All EU nationals within the UK and internationally have now become third-country entities. Due to this, British companies are advised to manage financial transactions with these individuals according to third-country rules and regulations. It is the only way to maintain AML compliance during business operations. 

Overall, these changes might seem small compared to other legal implications of Brexit. Yet, we suggest that you review and revise EU-based contracts to ensure that they align with the new rules. 

Interaction in UK vs. EU AML Approach

Currently, the UK and EU governments perceive money laundering as a criminal act. They aim to ‘support international efforts’ and abide by FATD rules to penalise money launderers. Their similar approach and mutual opinion on the matter can mean overlapping in the regulations and protocols followed by both governments.

However, a slight difference may emerge post-Brexit. These include the third-country status and new rules concerning UK-EU trade. These changes indicate the need for due diligence and awareness.  It is why commercial and private corporations should stay up to date with new developments in all financial and legal matters. Having a better understanding will enable them to make practical and compliant decisions when they transfer funds across the border.

Your Next Step 

In conclusion, leaving the EU has created a ripple effect in the corporate world. When in doubt, you must seek legal consultation to ensure that everything is in order. We can assess your current AML policies and make amendments wherever required. 

Do you want to know more? Get in touch for further details. 

Brexit and Family Law: How Has Brexit Changed Child Arrangement and Relocation?

Child Custody

Does your divorce have a cross-border element in it?

The implications of Brexit on family law have increased uncertainty associated with relevant legal proceedings. The situation can become more complex if there are children involved. That’s because Brussels II (a) has been replaced by the Hague Convention (1996), creating slight differences in routine procedures.

In addition, the UK courts are still finding their bearings regarding child maintenance and relocation issues.

This article gives you an insight into the situation.

Here are a few things you should know:

1. Choosing Jurisdiction

The Brussels II A granted jurisdiction to the state where the child is ‘habitually resident’. The Hague Protection of Child Conventionmore or less follows the same conditions. It only differs in situations where children change habitual residence during legal proceedings. When that happens, a jurisdiction might lose its authority to enforce any orders regarding custodial rights (or relocation).

That means it’s best to stay within the same jurisdiction during your divorce and custody proceedings, reducing complications surrounding jurisdiction and order enforcement.

Recognition of Orders

The UK has made certain amendments to existing legislation (i.e. the Jurisdiction and Judgments (Family) (Amendment etc.) (EU Exit) Regulations). The new provision instructs UK courts to implement the Hague Convention 1996 to recognize and enforce orders issued in EU member states.

However, there are slight alterations in the new rules and regulations, which might affect the verdict in the long-run.

For instance, the Hague Convention does not include automatic recognition of custodial rights. You might need court permission and a declaration of enforceability to raise your child. The court order applies to situations where you want to relocate from the UK to the EU or vice versa. The extra steps can cause delays in legal proceedings.

Therefore, you must consider this before choosing the jurisdiction when you file for custody. The right selection will prevent unnecessaryback and forth between the jurisdictions.

What’s more?

If you are filing for custody in the EU, the government already has a checklist ready for related cross-border issues. Review the guide to understand the rules and regulations of handling EU-UK family disputes.

In a Nutshell

Lastly, the implications of Brexit on family law are complex and often ambiguous. You need to consider the advantages of each jurisdiction and the rules of enforcement beforehand. Parents are advised to seek legal consultation before the proceedings begin. Having a detailed discussion on the subject can provide clarity about the situation.

Our international family solicitors can guide and support you throughout the process.  We also have an extensive legal network that oversees cross-border situations in the other state. Leveraging that network and our expertise, we can ensure that you choose the right pathway for custody.

Want to know more? Schedule a free consultation with our international team of family lawyers.

What Should You Do If UKBA Seizes Your Transport Vehicle/Goods?

A fleet of transportation trucks

Are you planning to move goods from the EU to the UK?

The UK-EU trade deal might have relaxed the new trading relationship, but the movement is still affected post-Brexit.  For instance, border security has increased after the end of the transition period.

These days, Border Force officers are conducting additional security checks when an EU vehicle arrives. Officers have the right to seize vehicles and goods if they detect custom offences, security threats, or illicit activities. The new border control process makes it necessary for transport companies to become more cautious about cross border transportation.  

Ensure that your paperwork is in order and your drivers are aware of their rights.

Here is what you can do if your goods get seized:

When Does UKBA Seize Your Goods?

The UK Border Agency (UKBA) has the authority to seize transport companies and goods if they suspect any illegal activity. The seizure can also happen if your breach the UK-EU trade deal or fail to submit authorized documents during cross-border checks.

UKBA can seize your vehicle if you are transporting:

  • Unlicensed tobacco or alcohol
  • Illegal goods (i.e. firearms or banned products)
  • Controlled drugs
  • Goods with outstanding taxes and custom charges

Transport companies with outstanding penalties for ‘clandestine entrants’ can also get seized when you are passing the border.  Avoid lashing out at the customs officers or becoming aggressive when your goods get seized. It’s best to tackle the situation through legal channels.

Can You Get Back Your Seized Vehicle/Goods?

Trading companies and independent contractors have the right to apply for restoration. You can make this claim even if you agree that the goods were lawfully seized. The letter gets addressed to Border Force.

Your application must include:

  • Your name and address, along with company details
  • Proof of ownership (for the vehicle and goods you purchased/manufactured)
  • Evidence to support your restoration request
  • Seizure reference number mentioned in the notice sent by UKBA
  • A detailed list of seized items (i.e. product names and quantity)

The authorities only consider restoration request s sent within 28 days of the seizure. You can do this if you suspect legality issues. You can also apply for compensation if your goods are destroyed/ disposed of before you submitted the application.

Moreover, you can also register a complaint against the customs officers who mistreated you during the seizure. The application can be addressed to Border Force (or HM Revenue and Customs), depending on the department supervising the proceedings.  Alternatively, you can file for a condemnation proceeding to claim an unlawful seizure. The UK court will conduct these proceedings.

How Can We Help?

Our experienced solicitors can offer practical legal advice and actionable solutions to address this matter. We can help you submit restoration request for seized goods and also negotiate a deal with UKBA.

Here are other services we offer:

  • Offering clear and concise advise on UK-EU trade deal and regulations
  • Drafting relevant legal applications and requests to initiate the restoration procedure
  • Challenging the legality of seizure in the court
  • Providing legal representation during negotiations with Border Force and the court
  • Requesting a compensation for transport businesses that dealt with financial consequences after UKBA seized the shipment

Rest assured we will do everything we can to safeguard your rights. You can also come to us for legal advice in arranging the correct documents for cross-border transportation. 

The Bottom Line
If your transport company gets seized, don’t hesitate to seek legal support. We can apply for a restoration request and appeal for misconduct within the designated period. These steps can protect your business and mitigate financial risks.

Need some legal advice on UK-EU trade deal and regulations? Contact us to schedule a consultation.

Further Reading

  • https://www.gov.uk/guidance/transporting-goods-between-great-britain-and-the-eu-guidance-for-hauliers-and-commercial-drivers
  • https://www.gov.uk/customs-seizures

UK-EU Divorce: How to Proceed After Brexit?

Have the UK-EU divorce rules changes after Brexit?

The start of January 2021, marked the end of the transition period. Like many areas of law, cross-border divorce regulations have altered significantly. Due to which, petitioners are requested to review the new rules before they choose a jurisdiction. The primary goal here is to handle everything properly, ensuring that your paperwork complies with post-Brexit regulations.

Here are the implications of Brexit on cross-border divorces:

Choosing the Jurisdiction

When filing for a divorce in England or Wales, one or both partner need British citizenship, habitual residency or domicile status. Otherwise, your divorce petition gets rejected.

UK-EU divorces are no longer reciprocal or mutual. With the cancellation of Brussels II regulations, the UK government will start following The Hague Convention (1970).  The procedure though simpler, makes things slightly more challenging for cross-border divorces. That is because the UK might not accept some EU-based verdicts and vice versa.

How to Choose a Jurisdiction?

You can settle differences through methodical mediation or go to the court.

If you go to court, decide where and how the proceedings will take place.Weigh the pros and cons of each legal regulation and its impact on personal and financial wellbeing.

Here are key factors to consider: 

  • Understand the family law regulations of each country and how each state recognises and enforces international divorces.
  • The distribution of cross-border financial assets
  • The benefits of specific jurisdictions on the weaker party
  • How do these laws impact child arrangement and custodial rights?

In short, select the option that creates more advantages for you in the long run.

Understanding the Timeframe

The Withdrawal Agreement accepts Brussels II provisions if your divorce proceedings begun before Jan 2021.  The UK courts will recognise EU-based judgements for these cases.

Alternatively, divorce cases initiated after Jan 2021 will use the new jurisdiction. These proceedings will adhere to a combination of rules and regulations. They include the amended the Domicile and Matrimonial Proceedings Act 1973, by the Jurisdiction and Judgments (Family) (Amendment etc.) (EU Exit) Regulations. Other rules are taken from The Hague Convention. The only trouble is that only a handful of EU members agree to The Hague Convention. That means you might have to undertake additional steps to get your divorce recognised in EU, depending on your location.

Moreover, the UK government has the right to halt proceedings if your divorce proceedings are going on in both EU and English  courtrooms.

Final Words

Lastly, anyone dealing with a UK-EU divorce must consult a specialist for legal support. Our law firm can tactfully handle the emerging challenges of cross-border divorces. Consultation includes paperwork, submissions, and a sound understanding of The Hague Convention and Brussels II.  We can also give you an in-depth overview of the implications of Brexit on family law. Having this knowledge can safeguard your rights and protect your financial assets.

Do you need help? Contact us today to schedule an initial appointment.

What Is the EU Settlement Scheme Family Permit?

A family using a laptop

Do you remember our previous discussion on the introduction of the EU Settlement Scheme for EEA nationals last year?

As the deadline comes closer, you must make haste and apply for a pre-settled or settled status. Your EEA family members can do the same.

If you are a non-EEA citizen, you can opt for the EU Settlement Scheme (EUSS) Family Permit. The simple pathways can be your ticket to the UK if you act quickly.This article discusses therules and regulations for this immigration scheme in detail.

Here are a few things you must know:

The Basics: What is an EU Settlement Scheme Family Permit?

It’s animmigration scheme that supportsnon-EEA individuals who do not have a visa or British residency within the UK. Once approved, the EUSS Family Permit allows the holder to visit the UK as many times as they want during a six-month-validity-period.

2. Application Rules and Regulations

Non-EEA citizens can apply for the EUSS Family Permit if they meet the criterion. The first rule limits eligibility to family members who have an EEA citizen residing or accompanying them on their trip to the UK.  Not only that, but the latter must also have a verified, pre-settled or settled status as per EUSS standards. In addition, that person must visit or live in the UK for at least six months.

The Home Office will deny applicants whose spouse (or guardian) does not have a EUSS number. Your application may be cancelled if the other person’s status is revoked or cancelled due to legal issues.

Besides this, you can qualify for the permit if you:

  • Submit evidence of a civil partnership or a marriage contract to prove your relationship.
  • You are dependent on the family or another person due to your age (i.e. children, grandchildren, parents, and grandparents).
  • Dependent family members of the non-EEA spouse can also apply if they meet the prerequisite conditions.

These conditions are only valid for relationships formed before 31 December 2020. Thismeans that newly married partners (and family members by association) need to take an alternative immigration route if they wish to live in the UK. Like always, the rules and regulations vary depending on individual circumstances.

EUSS Family Permit for Dependents Aged 21 & Over

As explained in the previous section, dependents (younger or older family members)qualify for this permit. Children aged 21 or above must submit financial, medical, or other documents to verify their dependence. For instance, mentally impaired or disabled children can submit medical records as evidence.

What’s the Next Move?

Overall, the EUSS Family Permit simplifies travelling for non-EEA family members. All you need are the required documents and the right representation. We provide a full range of family immigration law services for families separated due to cross-border elements.

Our legal support team will assist you indrafting applications and provide expert guidance on what you can and can’t do.

Are you planning to apply for the EUSS Family Permit? Get in touch to schedule a free consultation.

Cross-Border Insolvency Post-Brexit: What Is the UNCITRAL Model Law?

Cross-Border Insolvency Post-Brexit

At the end of the transition period, only four out of twenty-seven EU member states have accepted UK’s suggestion to use the UNCITRAL Model Law. The law streamlines the legal process and establishes clear-cut rules surrounding the recognition and enforcement of cross-border insolvency laws.

EU members that agreed to this model include Greece, Romania, Poland, and Slovenia.

Here is a closer look at what this entails:

The Basics: What Is the UNCITRAL Model Law?

The United Nations Commission on International Trade Law (UNCITRAL) was introduced by the UN to ‘harmonise and unify’ international trade laws.

The commission designed the Model Law to secure an equal and fair distribution of an insolvent’s offshore assets during cross-border insolvency cases. In these situations, the assets

are dispersed across jurisdictions, making it challenging for local courts to pass a verdict based solely on their judicial system.

The Model Law outlines rules and regulations for the countries in question. These rules include:

  • The governing cooperation during insolvency proceedings
  • Provision of assistance received by insolvency officeholders from the other country
  • Coordination of multiple jurisdictions during parallel insolvency proceedings

EU member states that agree to implement the Model Law during cross-border insolvency post-Brexit can alter or omit legal provisions. This right provides them flexibility, making it easier for them to modify the Model Law according to specific requirements and their country’s unique circumstances.

Compared to EC Regulations, the Model Law can be more versatile and flexible. It’s not mandatory and it does not transfer automatic recognition during UK/EU enforcements for court judgements and orders.

Implications of the Model: Cross-Border Insolvency Post Brexit

The Model Law simplifies the confusion surrounding UK-EU insolvency proceedings that shall take this year. It offers effective and practical mechanisms that accelerate the process.  Members of EU states that have agreed to use the UNCITRAL Model can practice it when they find an insolvent with UK assets. When that happens, foreign officeholders can apply an application to the UK court. The appeal includes a request for assistance.

The UK accepts the request after reviewing the request to consider the insolvents primary interests and circumstance. 

What Happens Next?

If the UK court recognises foreign insolvency proceedings as the main proceeding, the English common court shall initiate a civil proceeding against the debtor. Foreign officeholders receive legal permission to practice insolvency laws in court. They also have the authority to manage and distribute acquired UK-based assets.

A similar process occurs in EU states that have accepted the UNCITRAL Model Law as a substitute for EC Regulations to resolve cross-border insolvency issues post-Brexit.

The Bottom Line

Overall, the UNCITRAL Model offers clarity and control to foreign officeholders who agree with its enforcement for cross-border insolvency proceedings.  The model provides the UK court and its foreign counterpart with a framework to follow and implement during these situations. Without it, recovering outstanding credit by debtors would have been more complicated.

Need some help? Our international solicitors can answer all your questions regarding cross-border insolvency post-Brexit. Contact us today to schedule a free appointment.