101 UK Brexit Notes

Connemara Programme October 16 2018 pg. 175 After March 2019 if there’s no deal When the UK leaves the EU, EEA businesses will be treated like other third country service providers as the Regulations will need to be amended to comply with the UK’s commitments under World Trade Organisation rules. The Regulations will continue to ensure that businesses in the UK are not subject to disproportionate or burdensome regulation. For example, businesses and consumer rights will be protected as UK Competent Authorities will continue to regulate service provision in line with the general principles of open competition. The government will continue to work with the Scottish Government, Welsh Government and the Northern Ireland Civil Service and Competent Authorities to ensure future arrangements for provision of services work across the UK. These arrangements are without prejudice to the rights and privileges accorded, by the Common Travel Area, to Irish and UK citizens when in each other’s state. Implications The scope of the UK Regulations will be amended to apply to UK nationals established in the UK and UK-established businesses. EEA businesses will no longer have preferential access rights and protections provided for by the Regulations. Competent Authorities will regulate EEA businesses in the same way they regulate third country service providers. The UK services market is highly liberalised and it is not envisaged that EEA businesses will face additional barriers to entry to the UK Services market. UK businesses providing services in the EEA would no longer be covered by the EU Services Directive. As a result, countries in the EEA could treat them in the same way as they treat third country service providers. In many EEA countries, the regime for third countries has different requirements. This could result in additional legal and administrative barriers for UK firms, such as requirements based on nationality, re-submitting information to regulators and potential loss of access to any online portal to complete mandatory applications and licenses where this is only available to EEA nationals. The tangible impacts this would have on businesses will likely vary depending on sector and the Member State. A ‘No Deal’ scenario will also mean changes for UK nationals providing services in person into EEA countries, whether on a short term ‘fly in, fly out’ basis, longer term movement to provide services to clients, or placements within other parts of the business. Businesses should check whether a visa and/or work permit is required and otherwise comply with the immigration controls in place in each Member State where the service is being provided in person. This would vary depending on the Member State in question. If the provision of services relies on a UK qualification being recognised by a Member State regulator, individuals should check the host state national policies. The EU Commission has stated that decisions on the recognition of UK qualifications in EU Member States before exit day are not affected. Actions for businesses and other stakeholders UK businesses will continue to be obliged to provide the required information for service recipients and to maintain a complaints procedure. Businesses looking to provide services in the UK will continue to benefit from the Regulations as Competent Authorities should continue to design authorisation schemes and licensing requirements that are proportionate and justified in the public interest. Competent Authorities will be able to regulate EEA service providers as third country service providers. Regulators will have the choice to impose more restrictive requirements on EEA service providers, in line with their new status as third country service providers. Individual Competent Authorities will be responsible for advising businesses on any future changes to their processes and any changes are likely to be subject to consultation allowing businesses time to make necessary preparations. More information In 2009, the government published guidance providing businesses and Competent Authorities (who set licensing requirements and authorisation schemes for businesses) with detailed advice on the principles and suggested direction for the application of the Services Directive. In the scenario where the UK leaves the European Union on 29 March 2019 without a formal agreement, the published guidance will be updated to reflect the changes that are made to the Provision of Services Regulations 2009. It would provide further information on the restrictions requirements that may be imposed on EEA service providers. SOLVIT Before 29 March 2019: The SOLVIT network was established in 2002 following a European Commission Recommendation of 7 December 2001. SOLVIT Centres in each EU and EEA Member State work with each other to try to resolve informally complaints that arise following a decision issued by a public authority or regulator that affects the EU single market rights of EU businesses and citizens. SOLVIT provides an informal alternative to filing a court case, submitting a formal complaint to the European Commission or putting forward a petition. People who encounter a problem exercising their rights apply to their ‘Home Centre’, usually in their home country. The Home Centre prepares the case and sends it to the SOLVIT Centre in the country where the problem occurred (the Lead Centre), which then deals with the authority or regulator in question. After March 2019 if there’s no deal When the UK has left the EU, it will no longer have access to the SOLVIT network. The UK will close its SOLVIT Centre, will not accept any new cases and will close any unresolved open cases after exit day. Implications As the UK SOLVIT Centre will close, there are implications for UK citizens and business as well as EU and EEA citizens and business in terms of raising concerns. Actions for businesses and individuals UK citizens and businesses will have to raise concerns directly with the national authorities of the relevant EU or EEA Member State. EU and EEA citizens and businesses will have to raise concerns directly with UK national authorities.