Together with bankers, financial service providers and other professional stakeholders, City lawyers need to be more careful about the potential implications of Brexit due to a campaign spending cap enforced by the Electoral Commission.
The cap, set at £10,000 for businesses and individuals, came into effect on 15 April when the official campaign period kicked off in the run up to the 23 June referendum. Going forward, stakeholders will not be able to spend any more than £10,000 on activities which may influence the outcome of the referendum without registering formally as campaigners.
Many City firms have been engaging in Brexit related education and advocacy since the referendum was announced in February. Now, however, many fear that costs connected with holding Brexit events (even down to the provision of refreshments) may contribute towards the legal spending limit. Research reports which fail to strike a 'neutral tone' and are seen to be advocating for a particular referendum outcome may also be caught by the new rules, as well as reports which are marketed and made available to the wider public and media, rather than just clients.
The Electoral Commission has assured that events and research which are designed to help organisations prepare for the outcome of the vote by evaluating risks and potential outcomes will not be considered as referendum spending, so long as firms stop short of making a value judgment about a preferred outcome for the referendum.
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