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EU Law

For guidance on the UK's withdrawal from the European Union see our dedicated page.

Under the European Union (Withdrawal) Act 2018 (EUWA 2018), the UK ceased to be a member of the European Union (EU) on 31 January 2020 (‘exit day’). Under the withdrawal agreement, enacted in UK law by the European Union (Withdrawal Agreement) Act 2020 (the WAA 2020), this was followed by an implementation period (IP), which ended on ‘IP completion day’, defined as 31 December 2020 at 11.00 p.m. UK time.

The EUWA 2018 gave the UK government the power to amend or repeal both EU-derived domestic legislation and retained direct EU law if it was necessary to do so to make UK law function as intended once the UK has exited the EU and EU law ceases to apply in the UK. The government has made a number of statutory instruments which address the UK accounting, corporate reporting, auditing and corporate governance regimes. These instruments amend retained direct EU law and EU-derived domestic legislation to address deficiencies and ensure that the law continues to operate effectively after IP completion day. They take effect from IP completion day, although in many cases transitional provisions exist such that changes take effect only for periods beginning on or after IP completion day.

From ‘Implementation Period (IP) completion day’, defined as 31 December 2020 at 11.00 p.m. UK time, the IAS Regulation is repealed so that it no longer applies to the UK. Instead, the regulations introduce a new legal term - ‘UK-adopted international accounting standards’ - for IFRS Standards as adopted by the UK. This is discussed further in the IFRS in the UK page.

New legislation also provides for a UK mechanism for the endorsement of IFRS Standards. IFRS Standards as adopted by the UK on IP completion day are the extant IFRS Standards as adopted by the EU immediately before IP completion day, but may diverge over time; the timing of UK endorsement of standards may also be different from EU endorsement. This is discussed further in the IFRS in the UK page.

The Transparency obligations directive

The requirements of the EU Transparency Obligations Directive were transposed directly into UK law via the Disclosure Guidance and Transparency Rules (DTR). From 1 January 2021, all companies admitted to trading on a UK regulated market must comply with the requirements on periodic financial reporting in Chapter 4 of the DTR (regardless of country of incorporation). The DTR represent EU-derived domestic legislation which remains in place after IP completion day, with some changes to ensure that they continue to function. Further information on the Disclosure Guidance and Transparency Rules can be found here.

 

Correction list for hyphenation

These words serve as exceptions. Once entered, they are only hyphenated at the specified hyphenation points. Each word should be on a separate line.