15 April 2016
McCann FitzGerald warns on Brexit - “The most significant risk for the Irish economy and Irish business”
Premier Irish law firm, McCann FitzGerald, has warned that the possibility of a Brexit is probably currently the single most significant risk for the Irish economy and Irish business. In a report published today it stated that “there is a real concern that a vote to leave would lead immediately to legal, regulatory, economic and political uncertainty”.
McCann FitzGerald has published a briefing for clients: “Brexit - Ireland/UK implications” which sets out in some detail the impact of a Brexit for Irish companies and businesses which could arise from a changed relationship between Ireland and the UK. This was launched at a special panel discussion which featured Richard Pym, Chairman of AIB, Michael McNicholas, Group CEO of Ervia, Dr John Fingleton, CEO Fingleton Associates and former CEO of UK Office of Fair Trading and Chairman of Irish Competition Authority, and Dermot O’Leary, Chief Economist at Goodbody Stockbrokers. The event was moderated by John Cronin, a partner and former Chairman McCann FitzGerald, who leads the firm’s Brexit Group.
In light of its warning, McCann FitzGerald recommends that Irish companies should establish a review team to consider their business models and arrangements in order to identify legal and business risks, opportunities and steps that should be taken in the event of a vote to leave. The primary aim of the review would be to identify the principal aspects of the company’s business that would be most affected by Brexit.
Mr Cronin noted that the financial services industry, including asset management and funds, is most exposed of all UK industry sectors to a Brexit. In relation to Ireland, he said that there may be short and medium term gains for Irish financial services but the longer term position is uncertain and somewhat insecure. However, he suggested that there may be some Irish solutions to a number of potential issues that could arise for the UK investment funds industry.
Barry Devereux, Managing Partner, McCann FitzGerald said that the consequences of the UK exiting the EU in terms of corporate finance transactions should not be downplayed. “A Brexit could have substantial influence on business confidence to enter into such transactions” he said. However, he noted that the vast majority of existing transactions would be completed before any Brexit could occur since no actual withdrawal from the EU would likely be effected for at least two years.
The briefing by McCann FitzGerald is the first of its kind by a major Irish law firm and provides analysis in relation to a number of different legal areas and industry sectors including energy, intellectual property, imports and exports and financial services.
McCann FitzGerald has been a leader in Irish business circles in promoting discussion on the subject of Brexit. In January of this year, McCann FitzGerald hosted an event in London’s Guildhall for leading City of London law firm and business leaders at which over 250 people attended. It also co-hosted with the British and Irish Chamber of Commerce an event in its London office at which An Taoiseach Enda Kenny spoke.
If you would like a copy of the report please email brexit@mccannfitzgerald.com.
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