Law firms gear up for a possible Brexit

As the referendum reaches its climax, law firms with fund clients have been taking measures to prepare clients for the possibility of a Brexit.

Allen & Overy has scheduled a call for clients on June 24 in the event of a leave vote to outline the key issues they should focus on that day and in the days ahead. “So far we have around 550 clients registered and climbing,” a spokeswoman for the firm told pfm.

Hogan Lovells has been running its “Brexit Effect” microsite, which outlines the potential legal implications of a vote to leave across 12 different sectors.

Debevoise and Plimpton explores a number of possible scenarios for UK exit from the EU in its quarterly private equity review.

“The spectrum of potential models on which the UK could base its new relationship with the EU ranges from a Norway-like arrangement, representing the closest possible post-Brexit relationship with the EU without actually being a member of the EU, to a trade-only arrangement, with the UK trading with the EU merely as a member of the World Trade Organization,” said Debevoise.

US firm Squire Patton Boggs, meanwhile, has “issued numerous specialist alerts, run seminars and workshops (here in UK and in Europe and elsewhere)” and has its own Brexit blog, said a spokesman for the firm.

In the run up to the referendum Allen and Overy introduced a working group incorporating specialists across its practices focusing on Brexit and developed detailed analysis on the likely impact for clients to help them plan for various contingencies. In addition the law firm have developed 19 specialist papers that have been sent to clients and produced a detailed Q&A for lawyers to help answer the main questions it expects clients to ask should there be a vote to leave. 

“If the UK votes to leave the EU…it is difficult to predict how that exit would be managed and effected, and what the precise implications will be for commercial parties,” Allen & Overy said in a statement. “What is clear, however, is that while the details of any UK exit are being ironed out, which could take two (or more) years, commercial parties may face legal uncertainty. Further, whatever form a Brexit might ultimately take, there is likely to be an impact on the legal rights and obligations of commercial parties in all sectors, as well as the wider legal framework.”

“Not until we know the precise terms of any agreement, however, will we truly appreciate the impact of a Brexit on businesses, including private equity firms currently operating throughout the EU,” Debevoise added.