Brexit's impact on implementation in the UK: EU legislation tracker

This tracker shows adopted EU legislation that is due to be implemented in the UK. The tracker specifies the dates for implementation and, where available, includes government statements on how implementation may be affected by Brexit.

EU legislation that has not yet been adopted will be added to the tracker on adoption.

Practical Law
Contents

Business Crime & Investigations

EU legislation

Latest information on implementation in the UK

Other

Cybersecurity Directive ((EU) 2016/1148) (also known as the Network and Information Security Directive or NIS Directive)

No explicit commitment, but likely to be a priority given the current level of concern to cybercrime risk. (See also IP&IT.)

Legal update, NCA publishes Cyber Crime Assessment 2016 ( www.practicallaw.com/8-630-7127) .

Directive (EU) 2016/343 on the strengthening of certain aspects of the presumption of innocence and of the right to be present at the trial in criminal proceedings

Member states have until 1 April 2018 to implement the Directive.

 

Directive (EU) 2015/849 ( www.practicallaw.com/2-617-0330) on preventing the use of the financial system for the purposes of money laundering or terrorist financing (known as the Fourth Money Laundering Directive or MLD4)

Transposition has already made considerable progress; see Legal update, House of Commons library publishes briefing paper on money laundering law ( www.practicallaw.com/1-626-9685) . (See also Corporate and Financial Services.)

 

Directive 2014/41/EU regarding the European Investigation Order in criminal matters

Member states have until 22 May 2017 to implement the Directive.

 

 

Commercial

EU legislation

Latest information on implementation in the UK

Other

Trade Secrets Directive (2016/943/EU)

The Trade Secrets Directive was formally adopted by the Council of the European Union on 27 May 2016 and came into force on 5 July 2016.

The Directive is designed to harmonise the civil law on the protection of trade secrets. Due to its wide definition of "trade secret", information previously protected only in the UK by the law of confidentiality may be protected by this Directive in future.

Member states have until 9 June 2018 to transpose the Directive into their national law, which is likely to fall before the end of the two-year Article 50 period. It is not yet clear whether or to what extent the government will implement it.

Legal update, Trade secrets: Directive (EU) 2016/943 published in Official Journal ( www.practicallaw.com/7-629-7845) .

 

Competition

EU legislation

Latest information on implementation in the UK

Other

Directive 2014/104/EU on certain rules governing actions for damages under national law for infringements of the competition law provisions of the member states and the EU (Damages Directive) (See Legal update, Antitrust damages directive published in the Official Journal ( www.practicallaw.com/0-591-2946) .)

Deadline for transposition 27 December 2016.

On 28 January 2016, BIS published a consultation on implementing Directive 2014/104/EU. It stated that given the reforms introduced by the Consumer Rights Act, implementation of the Damages Directive would require relatively small changes to substantive law and procedures in the UK. Its overall intention was to take the "copy out" approach to explicitly transpose the requirements of the Damages Directive. This would require some amendments to the Competition Act 1998 and also the Civil Procedure Rules and CAT Rules. (See Legal update, BIS consults on implementing EU Damages Directive ( www.practicallaw.com/3-622-3861) .)

On 20 December 2016, BEIS published the government's response to its consultation on implementing Directive 2014/104/EU. The government has altered its general approach to implementation from that set out in its January 2016 consultation document. As the UK already has well-established rules governing claims for competition damages which are similar to the regime set out in the Damages Directive, it has decided that a lighter touch approach to implementation is more appropriate than the "copy-out" approach proposed.

Therefore, where provisions that meet the requirements of the Damages Directive already exist in UK law (including case law and common law), those are being left in place. Changes are only being made to UK legislation or Court Rules to implement the outstanding provisions. The government has also decided to implement the Damages Directive as a single regime which has the same procedures whether the original breach was of EU or domestic competition law.

The government has, in particular, decided to retain existing limitation time limits but to amend domestic limitation provisions and create a standalone competition limitation regime in the Competition Act 1998 to reflect the Damages Directives' provisions. It is also legislating, through a combination of amendments to the Competition Act and procedural rules, to implement the Directives' specific requirements about disclosure (for example in relation to the non-disclosure of leniency and settlement statements).

The government has also decided to amend legislation to implement the requirements of the Directive as to what an indirect purchaser must show to establish a claim, as to the rebuttable presumption that cartels cause harm, in relation to assessment of contributions between those jointly liable for an infringement, in relation to the effect of consensual settlements on the competition claim and any contribution claims, and to allow similar decisions of other competition authorities to provide prima facie evidence of infringement .

The government's decisions will be implemented by the draft Claims in respect of Loss or Damage arising from Competition Infringements (Competition Act 1998 and Other Enactments (Amendment)) Regulations 2017, which have been published and laid before Parliament. See Legal update, Government decisions on implementing EU Damages Directive and draft Regulations published ( www.practicallaw.com/w-005-0880) .

 

 

Corporate

EU legislation

Latest information on implementation in the UK

Other

Central Securities Depositories Regulation (CSDR) (Regulation (EU) No 909/2014 ( www.practicallaw.com/3-579-8888) of the European Parliament and of the Council of 23 July 2014 on improving securities settlement in the European Union and on central securities depositories and amending Directives 98/26/EC ( www.practicallaw.com/2-506-2690) and 2014/65/EU ( www.practicallaw.com/6-573-0849) and Regulation (EU) No 236/2012 Text with EEA relevance ( www.practicallaw.com/3-518-7312) )

CSDR was published in the Official Journal on 28 August 2014 and came into force on 17 September 2014 (subject to several transitional provisions).

Practical Law Corporate is tracking CSDR only insofar as it relates to the dematerialisation of shares.

Any EU issuer that issues or has issued transferable securities that are admitted to trading or traded on trading venues (which includes regulated markets, among others, such as the London Stock Exchange's Main Market) must arrange for the securities to be represented in electronic book-entry form (either immobilised through issuance of a global note representing the whole issue or directly issuing the securities in a dematerialised form) (Article 3(1), CSDR). This requirement applies from 1 January 2023 to transferable securities issued after that date, and from 1 January 2025 to all existing transferable securities (Article 76(2), CSDR).

BIS (now BEIS) undertook a regulatory impact assessment on the costs and benefits of dematerialisation for stakeholders during spring 2016. It has not yet consulted on options for implementing dematerialisation of shares in the UK.

Practice notes, CSDR: overview: Part one: Securities settlement ( www.practicallaw.com/3-532-9868) and Hot topics: CSDR: Securities settlement ( www.practicallaw.com/3-539-7490) .

Non-Financial Reporting Directive (Directive 2014/95/EU ( www.practicallaw.com/3-589-8920) of the European Parliament and of the Council of 22 October 2014 amending Directive 2013/34/EU ( www.practicallaw.com/9-573-6307) as regards disclosure of non-financial and diversity information by certain large undertakings and groups) (NFR Directive)

Amendments to the Accounting Directive (2013/34/EU) have been made by the NFR Directive as regards disclosure of non-financial and diversity information by certain large undertakings and groups.

The NFR Directive entered into force on 5 December 2014 and was required to be transposed into national law by 6 December 2016. The provisions relating to the non-financial statement apply to all relevant undertakings for the financial year starting on or after 1 January 2017. Broadly, the NFR Directive requires large undertakings which are public interest entities (PIEs) with over 500 employees to include a non-financial statement in their management report containing information relating to at least environmental, social and employee matters, respect for human rights, anti-corruption and bribery matters. In addition, the NFR Directive, requires the corporate governance statement in the management report of a PIE to contain a description of its diversity policy.(See Legal update, Narrative reporting: directive on disclosure of non-financial and diversity information published in Official Journal ( www.practicallaw.com/3-588-6385) and Practice note, Accounting Directive: overview: Amendments made by Directive 2014/95/EU: disclosure of non-financial and diversity information by certain large undertakings and groups ( www.practicallaw.com/0-575-6111) .)

The NFR Directive requires the Commission to prepare non-binding guidelines on methodology for reporting non-financial information to facilitate relevant, useful and comparable disclosure of non-financial information by undertakings. The Commission published a consultation on such guidelines which closed on 15 April 2016. It intended to publish the final guidelines by 6 December 2016 but has indicated that the guidelines will now be published in spring 2017. (See Legal update, Narrative reporting: Commission consultation on guidelines for reporting non-financial information ( www.practicallaw.com/3-621-8770) and European Commission: Non-Financial Reporting webpage ( www.practicallaw.com/w-005-2246) )

BIS (now BEIS) issued a consultation on the UK implementation of the NFR Directive which closed on 15 April 2016. (See Legal update, Narrative reporting: BIS consultation on UK implementation of the non-financial reporting directive ( www.practicallaw.com/7-623-2316) .)

A new rule, DTR 7.2.8A, was inserted into the DTR ( www.practicallaw.com/4-209-5952) to implement the NFR Directive's requirement for issuers to disclose their diversity policy in the corporate governance statement. DTR 7.2.8A came into force on 4 November 2016 and applies for financial years beginning on or after 1 January 2017. (See Legal update, DTR: FCA Handbook Notice No 38 and response to CP16/17 (corporate aspects) ( www.practicallaw.com/w-004-4003) .)

As part of the UK implementation of the NFR Directive, on 21 December 2016, the UK Companies, Partnerships and Groups (Accounts and Non-Financial Reporting) Regulations 2016 (SI 2016/1245) (NFR Regulations) were published together with an explanatory memorandum . The NFR Regulations were made on 19 December 2016 and come into force on the seventh day after they are made. They apply to financial years of companies and qualifying partnerships commencing on or after 1 January 2017 (see Legal update, Narrative reporting: draft Companies, Partnerships and Groups (Accounts and Non-financial reporting) Regulations 2016 ( www.practicallaw.com/w-004-4186) ).

As a result of feedback from the BIS consultation, the government decided to transpose the NFR Directive's requirements within the current UK reporting structure of the strategic report. Part 15 of the Companies Act 2006 has been amended by the NFR Regulations to provide that for financial years beginning on or after 1 January 2017 certain large PIEs, who have more than 500 employees must include a non-financial information statement as part of their strategic report and sets out the content required in the non-financial information statement. For further details, see . Practice note, Strategic report: Content: non-financial statement for certain large public interest entities: financial years beginning on or after 1 January 2017 ( www.practicallaw.com/2-531-6705) .

Practice notes, Strategic report ( www.practicallaw.com/2-531-6705) and Accounting Directive: overview ( www.practicallaw.com/0-575-6111)

Fourth Money Laundering Directive ((EU) 2015/849) ( www.practicallaw.com/2-617-0330) ) (MLD4)

MLD4 came into force on 25 June 2015 and Article 67 of MLD4 requires member states to implement the Directive by 26 June 2017. Among other things, the Directive requires member states to ensure that corporate and legal entities incorporated within their territory obtain and hold adequate and current information on their beneficial ownership and that such information is held in a central register. There are broadly equivalent requirements for trusts and similar structures.

On 5 July 2016, the Commission published a proposal for a Directive to amend MLD4 and the First Company Law Directive  ( www.practicallaw.com/0-630-6037) known as the Fifth Money Laundering Directive (MLD5) pursuant to which, among other things, the transposition date of MLD4 is proposed to be brought forward to 1 January 2017. (See Legal update, Fourth money laundering directive: Commission proposal for amending directive (corporate aspects) ( www.practicallaw.com/1-630-6070) .) MLD5 is currently passing through the EU legislative process

On 15 September 2016, HM Treasury published a consultation on the transposition of MLD4 into national law. Chapter 10 of the consultation highlights two potential areas of difference between the Directive's requirements relating to beneficial ownership of corporate and other legal entities and the UK's existing regime on the register of people with significant control. The government welcomes views on these issues and the PSC regime itself. It also seeks views on the transposition of the requirements relating to trust beneficial ownership information. The deadline for responding to the consultation is 10 November 2016. (See Legal update, Fourth money laundering directive: Treasury consults on transposition into national law (corporate aspects) ( www.practicallaw.com/w-003-4750) .)

On 3 November 2016, BEIS published a discussion paper on the transposition of Article 30 of MLD4 relating to the beneficial ownership of corporate and other legal entities. Although the UK's existing PSC regime is mostly consistent with the requirements of MLD4, BEIS considers that amendments to certain areas of the regime may be necessary, including the scope of the entities required to obtain and hold information (BEIS is also considering bringing companies admitted to trading on prescribed markets (such as AIM and ISDX) within the scope of the PSC regime) and the frequency with which entities are required to update their PSC information to within 6 months of a change occurring given that MLD4 requires the information collected to be "adequate, accurate and current". The deadline for responding to the consultation is 16 December 2016. (See Legal update, Fourth money laundering directive: BEIS discussion paper on the transposition of beneficial ownership provisions ( www.practicallaw.com/w-004-3852) .)

On 15 March 2017, HM Treasury published a further consultation on the transposition of MLD4 together with draft Money Laundering, Terrorist Financing and Transfer of Funds Regulations 2017. From a corporate perspective, broadly, draft regulation 42 imposes an obligation on every "UK body corporate" (being a body corporate formed under the law of the United Kingdom or a part of the United Kingdom) to respond to requests for certain information, including identifying its beneficial owners, from "relevant persons" within two working days and to notify such relevant persons of any change to the information previously provided within two working days. Relevant persons include banks, auditors, insolvency practitioners, external accountants and tax advisers, and lawyers.

The deadline for responding to the consultation on the draft regulations is 12 April 2017. The government confirms in the consultation that details of policy decisions in relation to Article 30 of MLD4 on company beneficial ownership will be published by BEIS in a written ministerial statement. (See Legal update, Fourth money laundering directive: further Treasury consultation (corporate aspects) ( www.practicallaw.com/w-006-9982) .)

(See also Business Crime & Investigations and Financial Services)

Practice note, Fourth Money Laundering Directive (MLD4) ( www.practicallaw.com/7-596-2725) .

For further background including information on the status of MLD5 and the proposed amendments to MLD4, see Practice note, Hot topics: MLD5 ( www.practicallaw.com/w-003-7306) , and, in particular, Current status of MLD5.

For information on transposition and implementation of MLD4 in the UK, see Practice note, Hot topics: UK implementation of MLD4 ( www.practicallaw.com/w-003-5874) .

For information on reform of the PSC regime arising from MLD4, see Practice note, PSC register: identifying people with significant control: Reform of the PSC regime: The Fourth Money Laundering Directive ( www.practicallaw.com/9-624-0527) .

 

Data Protection

EU legislation

Latest information on implementation in the UK

Other

General Data Protection Regulation ( www.practicallaw.com/6-631-1875) (GDPR)

The GDPR will apply in all EU member states from 25 May 2018. It will replace the Data Protection Directive (95/46/EC), which the UK transposed into its national law by way of the Data Protection Act 1998 (DPA). If the UK has not adopted the GDPR by 25 May 2018, the DPA will still apply in the UK.

The Information Commissioner's Office (ICO) and the Department for Culture, Media & Sport (DCMS) have issued statements that the GDPR will still be relevant in the UK. This is for several reasons, which include:

  • The requirement for non-EU countries to provide an "adequate" level of data protection to that of the EU, when transferring or processing EU citizens' personal data.

  • The expanded territorial scope of the GDPR, which will capture the offering of goods in the EU (for example, the offering of online goods and services) by non-EU countries.

The ICO will be speaking with government to present its view that, given the growing digital economy, reform of the UK's data protection regime remains necessary. What form this will take depends on the Brexit model adopted.

Businesses and organisations are, therefore, encouraged to continue with their preparations for GDPR.

For further information, see Practice note, General Data Protection Regulation: Key provisions and what businesses should be doing now ( www.practicallaw.com/1-619-6000) and Legal updates:

Legal update, General Data Protection Regulation to apply from May 2018 ( www.practicallaw.com/5-627-5892) and Article, General Data Protection Regulation: preparing for change ( www.practicallaw.com/5-626-9787)

EU-US Privacy Shield

On 12 July 2016, the EU Commission's College of Commissioners adopted the EU-US Privacy Shield adequacy decision, which replaces the EU-US Safe Harbour decision. The EU-US Privacy Shield enables personal data transfers from the EU to the US for commercial purposes. US businesses have to sign up to the Privacy Shield to avail themselves of this benefit.

As long as the UK is a member of the EU, it will benefit from the EU-US Privacy Shield mechanism but it is unclear what will happen once the UK leaves the EU. It is generally thought that the UK will no longer be able to benefit from the Shield and will have to enter into talks with the US. How this develops will be important for businesses that transfer personal data to the US.

See Legal updates:

Legal update, US government and interested groups seek to join Irish case on EU standard contractual clauses ( www.practicallaw.com/7-630-1847) .

Legal update, Article 29 Working Party publishes statement on the EU-US Privacy Shield ( www.practicallaw.com/3-631-5605) .

Practice note, Cross-border transfers of personal data ( www.practicallaw.com/0-201-5764) .

 

Environment

EU legislation

Latest information on implementation in the UK

Other

EIA Directive 2014 ( www.practicallaw.com/1-590-2305) (Directive 2014/52/EU of the European Parliament and of the Council of 16 April 2014 amending Directive 2011/92/EU on the assessment of the effects of certain public and private projects on the environment)

The EIA Directive 2014 was published in the Official Journal on 25 April 2014 and came into force 20 days later. It amends the EIA Directive 2011 to streamline the regime. Member states are required to implement the EIA Directive 2014 by 16 May 2017.

On 22 August 2016, the Welsh Government published a consultation on implementing the EIA Directive 2014 in Wales.

In December 2016, the Department for Communities and Local Government (DCLG) consulted on minimum implementation of the EIA Directive 2014 in the EIA regime and the EIA aspects of nationally significant infrastructure projects (NSIPs).

In December 2016, the Department for Environment, Food and Rural Affairs (Defra) and the devolved administrations published a consultation on implementing the EIA Directive 2014 focussing on forestry, water resources, land drainage and marine works.

In January 2017, the Department for Transport (DfT) published a consultation on implementing the EIA Directive 2014 focussing on works to harbours, highways, railways and other transport projects.

In February 2017, the Department for Business, Energy and Industrial Strategy (BEIS) published a consultation on the implementation of the EIA Directive 2014 for electricity works.

In February 2017, BEIS published a consultation on the implementation of the EIA Directive 2014 for offshore hydrocarbon-related developments and works to pipe-lines.

Practice note, Environmental impact assessment (EIA): legislation and guidance ( www.practicallaw.com/3-603-9165) .

Legal update, Welsh Government consults on changes to environmental impact assessment (EIA) regulations and procedures ( www.practicallaw.com/w-003-2692) .

Legal update, Government consults on implementation of EIA Directive 2014 for EIA and NSIP regimes ( www.practicallaw.com/w-005-0723) .

Legal update, Government consults on implementation of EIA Directive 2014 for forestry, land drainage, water resources and marine works ( www.practicallaw.com/w-005-0727) .

Legal update, Government consults on implementation of the EIA Directive 2014 for harbours, highways, railways and other transport projects ( www.practicallaw.com/w-005-6532) .

Legal update, Government consults on implementation of the EIA Directive 2014 for electricity works ( www.practicallaw.com/w-006-4596) .

Legal update, Government consults on implementation of the EIA Directive 2014 for offshore hydrocarbon-related developments and pipe-lines ( www.practicallaw.com/w-006-4510) .

EU Non-Financial Reporting Directive 2014 ( www.practicallaw.com/3-589-8920) (Directive 2014/95/EU of the European Parliament and of the Council of 22 October 2014 amending Directive 2013/34/EU as regards disclosure of non-financial and diversity information by certain large undertakings and groups)

PL Environment follows the environmental aspects of the Non-Financial Reporting Directive 2014. See Corporate for information on the Directive.

Draft Companies, Partnerships and Groups (Accounts and Non-Financial Reporting) Regulations 2016 were laid before Parliament in November 2016.

The government published its response to its February 2016 consultation, in November 2016.

Practice note, EU Non-Financial Reporting Directive 2014: environmental implications ( www.practicallaw.com/0-592-7226) .

Legal update, Narrative reporting: draft Companies, Partnerships and Groups (Accounts and Non-financial reporting) Regulations 2016 ( www.practicallaw.com/w-004-4186) .

Legal update, Narrative reporting: government response to consultation on implementation of the non-financial reporting directive ( www.practicallaw.com/w-004-4570) .

GMO Cultivation Amending Directive 2015 ( www.practicallaw.com/9-605-5505) (Directive (EU) 2015/412 of the European Parliament and of the Council of 11 March 2015 amending Directive 2001/18/EC as regards the possibility for the Member States to restrict or prohibit the cultivation of genetically modified organisms (GMOs) in their territory)

The GMO Cultivation Amending Directive 2015 came into force on 3 April 2015. Broadly speaking, it allows member states to restrict or prohibit the cultivation of GMOs on their territory without affecting the EU-wide risk assessment. The Directive allowed member states to start exercising their extended capacities to decide on genetically modified organisms (GMO) cultivation from spring 2015.

We are not aware of any implementing legislation.

Practice note, GMOs: genetically modified organisms, Regime for cultivation of GMOs ( www.practicallaw.com/7-503-0611) .

Low Carbon Fuel Standard Directive 2015 ( www.practicallaw.com/0-619-0292) (Council Directive (EU) 2015/652 of 20 April 2015 laying down calculation methods and reporting requirements pursuant to Directive 98/70/EC of the European Parliament and of the Council relating to the quality of petrol and diesel fuels)

The Low Carbon Fuel Standard Directive 2015 came into force on 15 May 2015. It provides for "implementing measures" under Article 7a of the Fuel Quality Directive 1998 (1998/70/EC) in relation to obligations on transport fuel suppliers to:

  • Monitor and report on the fuel and energy that they supply.

  • Achieve a 6% reduction in the life cycle greenhouse gas (GHG) emissions of the fuel and energy that they supply by 2020.

Member states have until 21 April 2017 to implement the Directive.

In November 2016, the government published a consultation on changes to the Motor Fuel GHG Reporting Regulations 2012 in part to meet new reporting requirements on the GHG intensity of fossil fuels under the Low Carbon Fuel Standard Directive 2015.

Practice note, EU Fuel Quality Directives 1998 and 2009 ( www.practicallaw.com/9-386-3029) .

Legal update, Government consults on 2017 changes to the RTFO and to the Motor Fuel (Road Vehicle and Mobile Machinery) Greenhouse Gas Emissions Reporting Regulations 2012 ( www.practicallaw.com/w-004-8393) .

Directive on sustainability of biofuels and ILUC (Indirect Land Use Change) 2015  ( www.practicallaw.com/3-619-0318) (Directive (EU) 2015/1513 of the European Parliament and of the Council of 9 September 2015 amending Directive 98/70/EC relating to the quality of petrol and diesel fuels and amending Directive 2009/28/EC on the promotion of the use of energy from renewable sources)

On 5 October 2015, the Directive on sustainability of biofuels and ILUC (EU) came into force. The transposition deadline is 10 September 2017.

The UK was due to consult on implementation (and other aspects relating to the use of biofuels) in summer of 2016, but nothing has yet been published.

Practice notes, EU Fuel Quality Directives 1998 and 2009 ( www.practicallaw.com/9-386-3029) and EU Renewable Energy Directive 2009 ( www.practicallaw.com/5-386-3875) .

Medium Combustion Plants Directive 2015 ( www.practicallaw.com/1-620-8098) (Directive (EU) 2015/2193 of the European Parliament and of the Council of 25 November 2015 on the limitation of emissions of certain pollutants into the air from medium combustion plants)

In November 2015, the Medium Combustion Plants Directive 2015 was published in the Official Journal (see Legal update, Medium Combustion Plants Directive 2015 published in Official Journal ( www.practicallaw.com/8-620-7830) ). Member states are required to implement the Directive by 19 December 2017.

In November 2016, the government published a consultation on the government's draft plans to implement the Medium Combustion Plants Directive 2015.

Practice note, EU Medium Combustion Plants Directive 2015 ( www.practicallaw.com/6-629-4499) .

Legal update, Government consults on Medium Combustion Plants Directive 2015 and NOx emission controls ( www.practicallaw.com/w-004-5996) .

 

Financial Services

EU legislation

Latest information on implementation in the UK

Other

MiFID II Directive ( www.practicallaw.com/6-573-0849) (2014/65/EU)

Member states are required to transpose the MiFID II Directive by 3 July 2017, and its provisions are to apply from 3 January 2018 (although there are some exceptions to this).

The FCA published a press release on 24 June 2016 instructing UK regulated firms to continue with implementation plans for legislation that is still to come into effect.

In its July 2016 financial stability report, the Bank of England stated that it is continuing to implement the current regulatory framework until any new arrangements with the EU take effect.

For information on the UK implementation of the MiFID II Directive, see Practice note, Hot topics: UK implementation of MiFID II ( www.practicallaw.com/9-621-6810) .

Markets in Financial Instruments Regulation ( www.practicallaw.com/4-573-0850) (Regulation 600/2014) (MiFIR)

MiFIR applies from 3 January 2018 (although there are some exceptions to this).

The FCA published a press release on 24 June 2016 instructing UK regulated firms to continue with implementation plans for legislation that is still to come into effect.

In its July 2016 financial stability report, the Bank of England stated that it is continuing to implement the current regulatory framework until any new arrangements with the EU take effect.

For information on the changes to the UK regime in the light of the application of MiFIR, see Practice note, Hot topics: UK implementation of MiFID II ( www.practicallaw.com/9-621-6810) .

PRIIPs Regulation ( www.practicallaw.com/8-594-2666) (Regulation 1286/2014)

The PRIIPs Regulation applies from 1 January 2018 (instead of 31 December 2016, as originally stipulated).

The FCA published a press release on 24 June 2016 instructing UK regulated firms to continue with implementation plans for legislation that is still to come into effect.

In its July 2016 financial stability report, the Bank of England stated that it is continuing to implement the current regulatory framework until any new arrangements with the EU take effect.

For information on the changes to the UK regime in the light of the application of the PRIIPs Regulation, see Practice note, Hot topics: PRIIPs Regulation: UK implementation of PRIIPs Regulation ( www.practicallaw.com/3-521-6263) .

Payment Accounts Directive ( www.practicallaw.com/1-579-8889) (2014/92/EU) (PAD)

Member states were required to transpose PAD by 18 September 2016 (although there are some exceptions to this).

The FCA published a press release on 24 June 2016 instructing UK regulated firms to continue with implementation plans for legislation that is still to come into effect.

In its July 2016 financial stability report, the Bank of England stated that it is continuing to implement the current regulatory framework until any new arrangements with the EU take effect.

For information on the UK implementation of PAD, see Practice note, Hot topics: Payment Accounts Directive: UK implementation of the PAD ( www.practicallaw.com/9-532-2487) .

Benchmarks Regulation ( www.practicallaw.com/8-630-4176) ((EU) 2016/1011)

The Benchmarks Regulation applies from 1 January 2018 (although there are some exceptions to this).

The UK authorities have not yet started work on changing the UK regime in the light of the application of the Benchmarks Regulation.

The FCA published a press release on 24 June 2016 instructing UK regulated firms to continue with implementation plans for legislation that is still to come into effect.

In its July 2016 financial stability report, the Bank of England stated that it is continuing to implement the current regulatory framework until any new arrangements with the EU take effect.

For information on the changes that are expected to be made to the UK regime, see Practice note, Hot topics: Benchmarks Regulation: FCA work on Benchmarks Regulation ( www.practicallaw.com/2-548-1045) .

Fourth Money Laundering Directive ( www.practicallaw.com/2-617-0330) ((EU) 2015/849) (MLD4 or 4MLD)

Member states are required to transpose MLD4 by 26 June 2017.

In July 2016, the European Commission published a proposed Directive ( www.practicallaw.com/7-630-6326) amending MLD4 (referred to as the Fifth Money Laundering Directive (MLD5 or 5MLD)).

It is unclear how long it will take for the European Parliament and the Council of the EU to reach political agreement on MLD5, or when the MLD5 amendments to MLD4 will have to be implemented by member states.

Both HM Treasury and BEIS, who are involved in transposing MLD4, intend that the new UK provisions will come into force by 26 June 2017, in line with MLD4.

In its September 2016 consultation paper on transposing MLD4, HM Treasury stated that until the EU exit negotiations are concluded, the UK remains a full member of the EU, and the government will continue to negotiate and apply EU legislation. The outcome of the negotiations will determine what arrangements will apply in relation to EU legislation in future, once the UK has left the EU.

The FCA published a press release on 24 June 2016 instructing UK regulated firms to continue with implementation plans for legislation that is still to come into effect.

(See also Business Crime & Investigations and Corporate.)

For an overview of MLD4, see Practice note, Fourth Money Laundering Directive (MLD4) ( www.practicallaw.com/7-596-2725) .

For information on ongoing EU-level developments relating to MLD4, see Practice note, Hot topics: MLD4 ( www.practicallaw.com/9-548-5686) .

For information on MLD5, and the proposed amendments it would make to MLD4, see Practice note, Hot topics: MLD5 ( www.practicallaw.com/w-003-7306) .

For information on how MLD4 is being transposed and implemented in the UK, see Practice note, Hot topics: UK implementation of MLD4 ( www.practicallaw.com/w-003-5874) .

Insurance Distribution Directive ( www.practicallaw.com/3-622-6826) ((EU) 2016/97) (IDD)

Member states are required to transpose the IDD by 23 February 2018.

The UK authorities have not yet started the consultation process for implementing the IDD.

The FCA published a press release on 24 June 2016 instructing UK regulated firms to continue with implementation plans for legislation that is still to come into effect.

In its July 2016 financial stability report, the Bank of England stated that it is continuing to implement the current regulatory framework until any new arrangements with the EU take effect.

For an overview of the IDD, see Practice note, Insurance Distribution Directive (IDD) ( www.practicallaw.com/4-544-5805) .

For information on ongoing EU-level developments relating to the IDD, see Practice note, Hot topics: IDD ( www.practicallaw.com/4-521-7747) .

PSD2 ( www.practicallaw.com/7-621-7189) ((EU) 2015/2366)

Member states are required to transpose PSD2 by 13 January 2018.

The FCA published a press release on 24 June 2016 instructing UK regulated firms to continue with implementation plans for legislation that is still to come into effect.

In its July 2016 financial stability report, the Bank of England stated that it is continuing to implement the current regulatory framework until any new arrangements with the EU take effect.

For information on the UK implementation of PSD2, see Practice note, PSD2: overview: UK implementation of PSD2 ( www.practicallaw.com/4-629-7314) .

 

IP&IT

EU legislation

Latest information on implementation in the UK

Other

Trade Secrets Directive ((EU) 2016/244)

On 27 May 2016, the Council of the European Union formally adopted the Directive which is designed to harmonise the civil law on the protection of trade secrets.

Member states have until 9 June 2018 to implement the directive, which will be before the end of the two-year Article 50 period, but it is not yet clear whether the government will do so. The substance of the Directive is broadly reflected in UK law and therefore its implementation is unlikely to result in significant changes in practice. The UK may still decide to implement it to have a common platform across Europe.

 

Directive (EU) 2015/2436 of the European Parliament and of the Council of 16 December 2015 to approximate the laws of the member states relating to trade marks

This Directive came into force on 15 January 2016 and it repeals the Trade Marks Directive currently in force (2008/95/EC) with effect from 15 January 2019. Most of its provisions are due to be implemented by member states by 14 January 2019, but there is one article for which the implementation deadline is 14 January 2023. As yet, the UK government has not issued any consultation relating to implementation.

 

Cybersecurity Directive ((EU) 2016/1148) (also known as the Network and Information Security Directive or NIS Directive)

The Directive was published on 19 July 2016 and is due to be implemented by 10 May 2018. Various transitional measures will apply from 9 February 2017, including measures allowing for the identification of operators of essential services within a specific sector. By 9 February 2017, member states must, for this purpose, ensure appropriate representation in the Cooperation Group (composed of representatives of member states, the Commission, and the EU Agency for Network and Information Security) and the CSIRTs (computer security incident response teams) network.

It is not yet clear what the UK government's approach to this Directive will be, but in practice the UK's cyber security laws will need to be similar to the EU laws to avoid trade restrictions.

 

Council agreement on a Unified Patent Court (OJ 2013/C 175/01)(UPC Agreement)

The UPC Agreement was signed on 19 February 2013 and will enter into force as soon as 13 participating states, including France, Germany and the UK, have ratified it. In November 2016, the UK government confirmed that it was preparing to ratify the UPC Agreement.

Regulation (EU) 1257/2012 of the European Parliament and of the Council implementing enhanced co-operation in the area of the creation of unitary patent protection

The Regulation was published in the Official Journal on 31 December 2012. It entered into force 20 days later and will apply from the date of entry into force of the UPC Agreement.

Regulation (EU) 1260/2012 implementing enhanced co-operation in the area of the creation of unitary patent protection with regard to the applicable translation arrangements

The Regulation was published in the Official Journal on 31 December 2012. It entered into force 20 days later and will apply from the date of entry into force of the UPC Agreement.

 

Pensions

EU legislation

Latest information on implementation in the UK

Other

Portability Directive (Directive 2014/50/EU of the European Parliament and of the Council of 16 April 2014 on minimum requirements for enhancing worker mobility between member states by improving the acquisition and preservation of supplementary pension rights)

The Portability Directive was published in the Official Journal on 30 April 2014. The Portability Directive lays down rules aimed at facilitating the exercise of the right of workers to freedom of movement between member states by reducing the obstacles created by certain rules concerning supplementary pension schemes linked to an employment relationship. The UK is largely compliant already, but UK legislative changes may be required.

The Directive came into force on 20 May 2014. Member states will have to transpose it into national law by 21 May 2018.

Legal update, Portability Directive: Directive on minimum requirements for enhancing worker mobility by improving acquisition and preservation of supplementary pension rights published in Official Journal ( www.practicallaw.com/0-566-9086) .

 

Tax

EU legislation

Latest information on implementation in the UK

Other

Anti-tax avoidance

Council Directive 2016/1164/EU laying down rules against tax avoidance practices that directly affect the functioning of the Internal Market

Directive adopted 12 July 2016. Published in OJ on 19 July.

Implementation date: 31 December 2018.

The UK already has similar legislation in most areas covered by the directive. Other areas are covered by the OECD's BEPS proposals so it is likely that the UK will implement.

Anti-Tax Avoidance Package: anti-avoidance: legislation tracker ( www.practicallaw.com/6-623-6126) .

Legal update, Introduction of EU corporate tax anti-avoidance package: detailed update ( www.practicallaw.com/2-622-5851) .

Automatic exchange of tax information between tax authorities

Council Directive (EU) 2016/2258 amending EU Council Directive 2011/16/EU as regards mandatory automatic exchange of information in the field of taxation

Directive adopted 6 December 2016. Published in OJ on 16 December 2016.

Implementation date: 31 December 2017.

The Directive ensures that EU tax authorities have access to data collected under current anti-money laundering rules, notably Directive 2015/849/EU (as to which, see Corporate and Financial Services).

Most of the provisions of Council Directive 2011/16 are administrative in effect and do not require UK implementing legislation. To the extent that implementing legislation is necessary this was effected by the European Administrative Co-Operation (Taxation) Regulations (SI 2012/3062). Essentially, these regulations provide that public authorities are not precluded by any secrecy laws from providing to HMRC any information needed to respond to a request from, or on behalf of, a competent authority of another member state, as required by the Directive (as amended from time to time). Accordingly, it is not thought that the UK will need specific legislation to implement Directive 2016/2258.

Legal update, Fairer taxation: Council Directive (EU) 2016/2258 as regards access to anti-money-laundering information by tax authorities published in Official Journal ( www.practicallaw.com/w-005-1401)

Automatic exchange of tax information between tax authorities

Council Directive 2014/17/EU ( www.practicallaw.com/3-559-9426) amending EU Council Directive 2011/16/EU as regards mandatory automatic exchange of information in the field of taxation

Directive 2014/17/EU introduces the so-called "Common Reporting Standard". This requires financial institutions to perform prescribed due diligence on account holders, maintain records of due diligence and report to HMRC those accounts identified as reportable to a jurisdiction where an exchange requirement exists. HMRC then passes that information to the relevant tax authorities.

The first returns under the directive are due in May 2017. The UK has adopted implementing legislation (The International Tax Compliance Regulations 2015 (SI 2015/878) as amended). ( www.practicallaw.com/1-606-5693)

Practice note, CRS, EU administrative co-operation and FATCA: UK implementing regulations ( www.practicallaw.com/3-608-3605) .

Country-by-country tax reporting

Council Directive 2016/881/EU amending Directive 2011/16/EU ( www.practicallaw.com/8-616-6226) .

Directive adopted 25 May 2016.

Published in OJ on 3 June 2016.

Implementation date: 4 June 2017.

A member state must require the filing of country-by-country reports by an ultimate parent of a group (broadly, an entity obliged to prepare consolidated accounts) or another reporting entity resident there. Reports must aggregate information relating to the amount of revenue, profit (or loss) before income tax, income tax paid, income tax accrued, stated capital, accumulated earnings, number of employees, and tangible assets (other than cash or cash equivalents) with regard to each jurisdiction in which the group operates. Reports to be shared automatically by recipient member state tax authority relevant EU tax authorities. This implements one of the recommendations of the OECD BEPS project.

UK has introduced implementing legislation which applies with effect from 1 January 2017, see Legal update, Regulations to implement country-by-country reporting made ( www.practicallaw.com/1-623-9146) and Legal update, Country-by-country reporting requirements to include partnerships ( www.practicallaw.com/1-631-8365) .

Anti-Tax Avoidance Package: country-by-country tax reporting: legislation tracker ( www.practicallaw.com/4-623-6165) .

Detailed coverage: Legal update, Introduction of EU corporate tax anti-avoidance package: detailed update ( www.practicallaw.com/2-622-5851) .

Tax authorities to share tax rulings

Council Directive 2015/2376/EU amending Directive 2011/16/EU ( www.practicallaw.com/8-616-6226) on administrative co-operation in the field of taxation as regards mandatory automatic exchange of information in the field of taxation

Adopted 8 December 2015. Published in OJ on 18 December 2015.

Implementation date: 31 December 2016.

This "Tax Rulings Directive" introduces mandatory automatic exchange of information between tax authorities about cross-border tax rulings and advance pricing agreements.

HMRC has published guidance about its approach to exchange of tax rulings, see Legal update, HMRC guidance on international exchange of tax rulings ( www.practicallaw.com/w-003-3602) .

Tax Transparency Package: Tax Ruling Directive legislation tracker ( www.practicallaw.com/6-606-7326) .

VAT treatment of vouchers

Council Directive 2016/1065/EU amending Directive 2006/112/EC ( www.practicallaw.com/7-506-1805) on the common system of value added tax as regards the VAT treatment of vouchers

Adopted 27 June 2016.

Published in OJ on 1 July 2016.

Implementation date: 31 December 2018.

Latest EU development: Legal update, VAT: Council Directive on treatment of vouchers published in Official Journal ( www.practicallaw.com/6-630-5817)

Detailed analysis: Legal update, Commission proposes uniform VAT rules for vouchers ( www.practicallaw.com/8-519-4334) .

Minimum rate of VAT

Council Directive 2016/856/EU amending Directive 2006/112/EC ( www.practicallaw.com/7-506-1805) on the common system of value added tax, as regards the duration of the obligation to respect a minimum standard rate. Maintains the minimum rate of VAT at 15% from 1 January 2016 until 31 December 2017

Adopted 27 May 2016.

Published in OJ on 31 May 2016.

UK is compliant as our standard rate of VAT is 20%, (we have certain agreed derogations which permit a reduced rate on certain supplies).

Latest EU development: Legal update, Common system of VAT: Directive maintaining minimum standard VAT rate at 15% until end of 2017 published in Official Journal ( www.practicallaw.com/9-628-9646) .

 
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