Law firms are bracing themselves for no deal after the government pledged a Halloween Brexit come what may.
The prime minister stepped up his bullish rhetoric this week, refusing to meet with EU leaders unless they scrap the Irish backstop, while Cabinet minister Michael Gove said the government was assuming no deal would be the most likely outcome.
David Greene, senior partner at Edwin Coe and NLJ consultant editor, said: ‘Leaving the EU without a deal seems, according to the new administration, to be a looming reality despite the legions advocating against it.
‘The Law Society like many other bodies representing professional services has campaigned against a “no deal” but then so has the Confederation of British Industry, the Institute of Directors, the City and very many others.
‘Many of the larger firms have prepared for no deal but for smaller firms it is more difficult. Some of the issues that need to be addressed are, for instance, transfer of data under the General Data Protection Regulation (GDPR) after departure, enforcement of judgments, immigration issues for staff and for clients and the effect on child arrangements in divorce, and practice rights in the EU, particularly on a “fly in fly out” basis.
‘In a transition period we would have the “luxury” of working on these over time, but no deal means no time. The profession will deal with it and will be there for clients, but like all things, preparation is the key to success, and this preparation cannot wait.’
More than 2,700 solicitors have registered in Ireland so they can keep their EU practising rights post-Brexit, and some of the larger firms have opened offices there. However, it is not yet clear that those lawyers will be able to practise from outside of Ireland, and the Law Societies of England and Wales and of Ireland are currently in discussion about this point.
Last week, Law Society president Simon Davis warned the prime minister: ‘Preserving the legal sector’s strong economic contribution will require continued close co-operation with the EU and depend on the continued ability of UK lawyers to practise there.’
