The UK Makes its Brexit: What You Need to Know Now

In an outcome that has surprised many, Britain has voted to leave the EU. This will lead to a two-year period of negotiating the terms of exit with the EU and its member states.

What You Need To Know

• Political fallout has started already with UK Prime Minister David Cameron announcing his resignation. Additional fallout is likely and may spread beyond politicians to other leading opinion-makers who supported the remain side.
• Markets around the world have reacted to the high level of uncertainty caused by the vote. Stock markets are down as are major currencies (and the Canadian dollar) as investors rush to the relative safety of the U.S. market. We should expect this level of reaction to moderate as the situation settles and the mid- and longer-term consequences of the vote come into focus.
• There are many Canadian companies with operations, sales, investments or trading relationships in Britain or Europe that could be affected. And the knock-on consequences of the Brexit, including the possible exit of other member states and the further weakening of the EU, could have significant impacts on Canadian companies.

Torys LLP is paying close attention to these evolving issues, considering the consequences for Canadian companies in different sectors and working with our international colleagues to provide timely and insightful advice. With that in mind, we refer you to memoranda from our colleagues at Linklaters LLP and Allen & Overy LLP that discuss certain aspects of the Brexit and its consequences.