In June, 30 million people in the United Kingdom voted on a referendum that would either keep the country in the European Union or remove it. In an astonishing turn of events, the UK voted to leave the EU. The close vote—52 percent to leave and 48 percent to stay—ends the UK's decades-long commitment to Britain's participation in the free movement of people, goods, services, and capital among EU member countries.

But what does this mean for professional and trade associations? And what should associations be thinking about to prepare for Brexit-related changes? Here's what to expect.

Brexit means Brexit—eventually. British Prime Minister Theresa May has been fond of repeating the mantra "Brexit means Brexit," which means that she intends to lead the country out of the EU, per the people's vote. In a Birmingham campaign speech, she said, "There will be no attempts to remain inside the EU, no attempts to rejoin it by the back door, and no second referendum." Still, in the short term, nothing much will change. The UK will remain a part of the EU for several years to come, and the path toward exit is far from clear.

Short-term operational impact on associations should be minimal. The UK has a well-established not-for-profit legal and regulatory framework, which Brexit shouldn't shake. There may, however, be a few situationally dependent short-term shocks. With the historic slump in the value of the British pound against the dollar, some associations are reporting that registrations from UK-based delegates are slightly down for U.S.-based events this quarter.

Associations are uniquely positioned to share insights and data about the potential impact of Brexit on their members.

Longer-term implications are more uncertain but could be more profound. There will be many political and economic uncertainties in the next three years, while the terms of Brexit and the UK's new relationship with the EU—and the rest of the world, in terms of new trade agreements—are settled. One key issue is immigration. The extent to which immigration and the free movement of people will be affected remains unclear. This could have implications for associations that employ EU nationals in the UK or, as is more common, UK nationals in EU-member states. Many associations, for example, have offices in Brussels.

In the meantime, associations with EU representation interests should begin positioning themselves for life after Brexit. More than 60 U.S.-headquartered trade associations are listed on the EU Transparency Register, the EU's register of lobbying interests. They cover a diverse range of interests, from meat export to pharmaceutical research. Even more U.S. associations engage with UK and EU stakeholders around standards or in research projects. These organizations should now be assessing their own priorities, engaging with European institutions, and forging new alliances at member-state level.

Associations are also uniquely positioned to share insights and data about the potential impact of Brexit on their members. For example, the Council for Global Immigration is helping its members understand Brexit and its implications with member networking calls, post-Brexit immigration forecasts, and surveys on how its members are managing Brexit's aftermath.

Practical Steps

In the short term, associations can take some practical steps to prepare for the UK's departure from the European Union:

• Work with other associations in your sector to share information and identify threats and opportunities that can be addressed collectively as the Brexit landscape becomes clearer—always bearing in mind that agreements and other practices that prevent, restrict, or distort competition are prohibited under both UK and EU competition law.


• Ensure that your articles of association and/or bylaws are appropriate to a post-Brexit landscape. Does your clause on purpose and activity refer to an EU territory, laws, or institutions, for example? If so, these terms should probably be amended to explicitly include the UK. Does your clause on membership limit European membership to the EU member states? In that case, assuming you wish to retain your British members, it would be advisable to amend the clause to clearly include the UK.


• If you're an international association with your primary European entity registered in the UK but with primary interest in EU representation, consider setting up an entity in Brussels.

The final shape of Brexit is a big unknown, and the uncertainty makes it difficult for associations to act decisively. However, associations should be thinking ahead as far as possible and reviewing their needs now.