Currently, the mutual recognition of professional qualifications (MRPQ) directive is a reciprocal arrangement which enables European Economic Area (EEA) nationals to have their professional qualifications recognised in an EEA state other than the one in which the qualification was obtained.

Following a ‘no deal’ exit from the EU, the MRPQ directive would no longer apply to the UK and there would be no system of reciprocal recognition of professional qualifications between the remaining EEA states and the UK.

The guidance states: ‘The UK will ensure that professionals arriving in the UK from the EEA after the exit date will have a means to seek recognition of their qualifications.

‘However, this will differ from the current arrangements. For example, specific mechanisms and functions linked to EU membership, such as automatic recognition, or temporary access to regulated activities on the basis of a declaration, will no longer be applicable. Tools such as the Internal Market Information system will also no longer be available in the UK’.

The guidance says the government will continue to work with the Scottish government, Welsh government and the Northern Ireland civil service as well as regulatory bodies to ensure the future system for the recognition of professional qualifications works across the UK, with details to be made available once the terms of the deal are known.

On the subject of the impact of a possible ‘no deal’ on businesses supplying services, currently the EU services directive (2006/123/EC) makes it easier for businesses to establish themselves in other member states, and to provide services cross-border on either a temporary or permanent basis. The services directive is implemented into UK legislation by the Provision of Services Regulations 2009.

If there is no deal when the UK leaves the EU, EEA businesses will be treated like other third country service providers as the regulations will need to be amended to comply with the UK’s commitments under World Trade Organisation (WTO) rules.

The guidance states the regulations will continue to ensure that businesses in the UK are not subject to disproportionate or burdensome regulation. For example, businesses and consumer rights will be protected as UK competent authorities will continue to regulate service provision in line with the general principles of open competition.

EEA businesses will no longer have preferential access rights and protections provided for by the regulations, and competent authorities will regulate EEA businesses in the same way they regulate third country service providers.

UK businesses providing services in the EEA would no longer be covered by the EU Services Directive. As a result, countries in the EEA could treat them in the same way as they treat third country service providers.

The guidance notes: ‘This could result in additional legal and administrative barriers for UK firms, such as requirements based on nationality, re-submitting information to regulators and potential loss of access to any online portal to complete mandatory applications and licenses where this is only available to EEA nationals. The tangible impacts this would have on businesses will likely vary depending on sector and the member state.’

A ‘no deal’ scenario will also mean changes for UK nationals providing services in person into EEA countries, whether on a short term ‘fly in, fly out’ basis, longer term movement to provide services to clients, or placements within other parts of the business. There may be requirements for visas or work permits depending on the member state in question, as well as a requirement for a UK qualification to be recognised by the member state regulator.

Guidance: Providing services including those of a qualified professional if there is no Brexit deal is here

Report by Pat Sweet