Article 50 Brexit Procedure to Require Parliament Vote, Supreme Court Pending

Could financial services passporting be on the negotiating table for the UK government?

The High Court of London has just probably delayed the triggering of the Article 50 procedure ,which is slated to be the start of a complex negotiation around Brexit. The move comes as a surprise for the markets as the British pound has heavily reacted to the news and is currently up across the board against all of its major counterparts.

The news is not certain to cause a big break to the plans of the UK government to leave the European Union by triggering Article 50. In fact the controversy around the ruling is likely to just be starting since the Supreme Court is the next step as the UK government has filed an appeal.

Join the iFX EXPO Asia and discover your gateway to the Asian Markets

Legal experts are split in their opinions on the matter. Commenting on the ruling, the Head of Brexit Advisory Team at Pinsent Masons said: “If the Government decides to contest the judgment, the appeal will inevitably be heard by the Supreme Court as a matter of urgency, potentially in December. If Parliamentary approval is required before Article 50 can formally be triggered, it is unclear what the outcome will be.”

Suggested articles

Why Ethereum Needs Layer 2 Solutions More Than EverGo to article >>

“Even if the House of Commons votes in favour of invoking Article 50, it is far from clear that the House of Lords would do so. In such a scenario a major constitutional debate will be triggered, given that the referendum result was clearly in favour of Brexit, which may well lead to an early General Election.”

In the meantime, Labour leader Jeremy Corbyn stated that the ruling demands the review of the terms of the exit from the European Union and the discussing of the negotiating strategy which the government intends to employ.

“Labour will be pressing the case for a Brexit that works for Britain, putting jobs, living standards and the economy first,” Corbyn stated.

In any case if the negotiating terms of the British government are put to a vote, the likelihood of financial services passporting into the European Union coming to the forefront of negotiations are quite substantial high.

Got a news tip? Let Us Know