The Law Applicable to Contractual Obligations and Non-Contractual Obligations (Amendment etc.) (EU Exit) Regulations 2019
2019 No. 834
Exiting The European Union
Private International Law
The Law Applicable to Contractual Obligations and Non-Contractual Obligations (Amendment etc.) (EU Exit) Regulations 2019
Made 29th March 2019
Coming into force in accordance with regulation 1
The Secretary of State makes these Regulations in exercise of the powers conferred by section 8(1) of, and paragraph 21(b) of Schedule 7 to, the European Union (Withdrawal) Act 20181.
In accordance with paragraph 1(3) of Schedule 7 to that Act a draft of this instrument has been laid before Parliament and approved by a resolution of each House of Parliament.
PART 1
Introductory
Citation and commencement
1. These Regulations may be cited as the Law Applicable to Contractual Obligations and Non-Contractual Obligations (Amendment etc.) (EU Exit) Regulations 2019 and come into force on exit day.
PART 2
Amendment of primary legislation
Amendment of the Prescription and Limitation (Scotland) Act 1973
2. In section 23A(5) of the Prescription and Limitation (Scotland) Act 19732(application of the Rome I and II Regulations)—
(a) in paragraph (a) for “conflicts falling within Article 22(2)” substitute “application”;
(b) in paragraph (b) for “conflicts falling within Article 25(2)” substitute “application”.
Amendment of the Contracts (Applicable Law) Act 1990
3.—(1) The Contracts (Applicable Law) Act 19903is amended as follows.
(2) For section 1 (meaning of “the Conventions”)4substitute—
“Meaning of “the Rome Convention”
1. In this Act, a reference to the Rome Convention is a reference to the provisions contained in Schedule 1 (which is derived from the Convention on the law applicable to contractual obligations opened for signature in Rome on 19th June 1980).”.
(3) In section 2 (Conventions to have force of law)5—
(a)
(a) for the heading substitute “Application of the Rome Convention”;
(b)
(b) for subsection (1) substitute—
“1 The Rome Convention applies to contracts made on or after 1st April 1991.”;
(c)
(c) omit subsections (1A), (2) and (4);
(d)
(d) in subsection (3), for the words from “Notwithstanding” to “Conventions” substitute “The Rome Convention”.
(4) In section 3 (interpretation of Conventions)—
(a)
(a) in the heading, for “Conventions” substitute “the Rome Convention”;
(b)
(b) for subsection (1) substitute—
“1 Any question as to the meaning or effect of any provision of the Rome Convention is to be decided in accordance with section 6 of the European Union (Withdrawal) Act 2018 (interpretation of retained EU law).”;
(c)
(c) omit subsection (2);
(d)
(d) in subsection (3)(a)—
(i) for “Rome Convention” substitute “Convention on the law applicable to contractual obligations”6; and
(ii) for “that Convention” substitute “the Rome Convention”;
(e)
(e) omit subsection (3)(b) and the “and” before it.
(5) Omit section 4 (revision of Conventions).
(6) In section 4A(2) (disapplication where the rules in the Rome I Regulation apply: England and Wales and Northern Ireland)7, for “conflicts falling within Article 22(2)” substitute “application”.
(7) In section 4B(2) (disapplication where the rules in the Rome I Regulation apply: Scotland)8, for “conflicts falling within Article 22(2)” substitute “application”.
(8) Omit section 8(2) and (3) (power to extend or modify the Act in relation to territories).
(9) In Schedule 1 (the Rome Convention)—
(a)
(a) in the words before Article 1 (statement as to the establishment of the Convention), omit the words from “The High Contracting Parties” to “Have agreed as follows:”;
(b)
(b) in Article 1(3) (Convention to not apply to contracts of insurance covering risks in Member States)—
(i) for “Member States” substitute “United Kingdom or any Member State”;
(ii) omit the words from “In order” to the end;
(c)
(c) in Article 2 (application of law of non-contracting states)—
(i) for the heading substitute “Application of law of a country outside of the United Kingdom”;
(ii) for “a Contracting State” substitute “the United Kingdom or a part of the United Kingdom”;
(d)
(d) omit Article 7(1) (application of mandatory rules of the law of another country);
(e)
(e) omit Article 10(1)(e) (applicable law shall govern the consequences of nullity of the contract);
(f)
(f) omit Article 17 (no retrospective effect);
(g)
(g) omit Article 19(2) (states with more than one legal system not bound to apply convention to internal disputes);
(h)
(h) in Article 20 (precedence of Community law)—
(i) in the heading, for “Community” substitute “retained EU”;
(ii) for the words from “or will be contained” to the end substitute “contained in retained EU law”;
(i)
(i) in Article 21 (relationship with other conventions), for “a Contracting State” substitute “the United Kingdom”;
(j)
(j) omit from Article 22 to the end.
(10) Omit Schedules 2 to 3B (the Luxembourg Convention, the Brussels Protocol, the Funchal Convention and the Accession Convention).
Amendment of the Private International Law (Miscellaneous Provisions) Act 1995
4. In section 15B(2) of the Private International Law (Miscellaneous Provisions) Act 19959(disapplication of Part III where the rules in Rome II Regulation apply: Scotland) for “conflicts falling within Article 25(2)” substitute “application”.
PART 3
Amendment of secondary legislation
Amendment of the Law Applicable to Non-Contractual Obligations (England and Wales and Northern Ireland) Regulations 2008
5. In regulation 6 of the Law Applicable to Non-Contractual Obligations (England and Wales and Northern Ireland) Regulations 200810—
(a) in the heading omit “: conflicts falling within Article 25(2)”;
(b) omit “Notwithstanding Article 25(2) of”; and
(c) omit “, that Regulation”.
Amendment of the Law Applicable to Contractual Obligations (England and Wales and Northern Ireland) Regulations 2009
6. In regulation 5(1) of the Law Applicable to Contractual Obligations (England and Wales and Northern Ireland) Regulations 200911—
(a) in the heading omit “: conflicts falling within Article 22(2)”;
(b) omit “Notwithstanding Article 22(2) of”; and
(c) omit “, that Regulation”.
Amendment of the Financial Services and Markets Act 2000 (Law Applicable to Contracts of Insurance) Regulations 2009
7. In regulation 3 of the Financial Services and Markets Act 2000 (Law Applicable to Contracts on Insurance) Regulations 200912—
(a) in the heading, for “falling within Article 22(2)” substitute “between different parts of the United Kingdom”;
Amendment of the Law Applicable to Non-Contractual Obligations (Scotland) Regulations 2008
8. In regulation 4 of the Law Applicable to Non-Contractual Obligations (Scotland) Regulations 200813—
(a) for the heading substitute “Application of Regulation (EC) No 864/2007”;
(b) omit “Notwithstanding Article 25(2) of”; and
(c) omit “that Regulation”.
Amendment of the Law Applicable to Contractual Obligations (Scotland) Regulations 2009
9. In regulation 4 of the Law Applicable to Contractual Obligations (Scotland) Regulations 200914—
(a) for the heading substitute “Application of Regulation (EC) No 593/2008”;
(b) omit “Notwithstanding Article 22(2) of”; and
(c) omit “that Regulation”.
PART 4
Amendment of retained EU law
Amendment of the Rome I Regulation
10.—(1) Regulation (EC) No 593/2008of the European Parliament and of the Council of 17 June 2008 on the law applicable to contractual obligations (Rome I) is amended as follows.
(2) In Article 1 (material scope)—
(a)
(a) in paragraph 2(j), for the words beginning with “Article 2” and ending with “assurance” substitute “Article 2(1) of Directive 2009/138/EU15which carry on life assurance under Article 2(3) of that Directive”;
(b)
(b) for paragraph 4, substitute—
“4. In this Regulation, “relevant state” means the United Kingdom and—
(a) in Article 3(4) and Article 7, all the Member States;
(b) in all other Articles, the Member States to which Regulation (EC) No. 593/2008of the European Parliament and of the Council of 17 June 2008 on the law applicable to contractual obligations (Rome I), as it has effect in EU law and as amended from time to time, applies16.”.
(3) In Article 2 (universal application), for “a Member State”, substitute “the United Kingdom or a part of the United Kingdom”.
(4) In Article 3(4) (parties’ choice of applicable law shall not prejudice application of community law under certain circumstances)—
(a)
(a) for “Member States” substitute “relevant states”;
(b)
(b) for “Member State”, in the first place it appears, substitute “relevant state”;
(c)
(c) for “Community law, where appropriate as implemented in the Member State of the forum,”, substitute “retained EU law”.
(5) In Article 4(1)(h) (applicable law in the absence of choice), for “by Article 4(1), point (17) of Directive 2004/39/EC” substitute “in Part 1 of Schedule 2 to the Financial Services and Markets Act 2000 (Regulated Activities) Order 200117”.
(6) In Article 6(4) (consumer contracts: general rules not to...
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