On 18 September 2014, the referendum on Scottish independence will take place. Opinion polls suggest that the outcome is too close to call. This note highlights various legal issues related to the referendum and Scottish independence, in particular those related to the location and status of financial institutions, membership of the European Union, possible structures for a new currency and the national debt. Issues connected with credit default derivatives are addressed in a separate client note.

The Referendum -

The referendum is governed by the Scottish Independence Referendum Act 2013. This legislation was passed by the UK Parliament, following an agreement between the UK and Scottish Governments in October 2012 that a referendum on Scottish independence could take place. The Act sets out the key provisions governing the referendum, including the question – “Should Scotland be an independent country?” The Act also prescribes the procedures and processes for the referendum.