Search

How can we help?

Icon

Commercial Agency Regulations 1993 and Brexit

The Commercial Agency Regulations 1993 (Regulations) will continue to apply to agency relationships in the UK currently and decisions of the European Court of Justice (ECJ) will continue to bind the laws of England and Wales up and until 31 December. 

Whilst the regulations will continue to apply post Brexit, the decisions of the ECJ will no longer be binding on English Courts and therefore, there could be differences in the way in which cases are decided going forward. 

It is unlikely that the Regulations themselves will be repealed by Parliament and therefore, these Regulations are likely to continue to bind agency relationships for the foreseeable future. It is worth therefore reminding ourselves of some of the key terms. 

When do the Commercial Agency Regulations apply? 

The Regulations apply to commercial agency relationships – not distributorship agreements. The key difference between an agent and a distributor is the payment of a commission to an agent on conclusion of a sale with the end customer, and the end customer contracts directly with the agent’s principal and not the agent.  

Certain relationships are excluded, such as employees, partners or unpaid agents and where the agency provided is not the principal activity of the relationship between the agent and the principal 

Key provisions of the Commercial Agency Regulations

Unless expressly provided, the Regulations provide the agent with a reasonable or customary entitlement to remuneration for the provision of services and in certain circumstances, entitlement to commissions on transactions which have been provided after the agency relationship has been concluded.  

The Regulations also set out rules in respect of the termination of agency contracts.  The Regulations provide for implied notice periods for those relationships which do not have a finite period or fixed period agency relationships, where relations continue after the fixed period has come to an end.  

The Regulations contain a statutory right for an agent to receive compensation for losses suffered as a result of the agreement being terminated by the principal.  

Can they be excluded from application in an agency agreement? 

Generally speaking, the operative provisions cannot be excluded from an agency relationship but in certain circumstances their application can be minimised.

Whilst the regulations will continue to apply post Brexit, the decisions of the ECJ will no longer be binding on English Courts and therefore, there could be differences in the way in which cases are decided going forward. 

Conclusion  

The Regulations will continue to be important in governing agency relationships in the post Brexit world for the UK. It will be interesting to see how, over time, the Regulations are interpreted (and if differently) by the UK and European Courts.

Disclaimer
This information is for guidance purposes only and should not be regarded as a substitute for taking legal advice. Please refer to the full General Notices on our website.

Author profile

About this article

Read, listen and watch our latest insights

Pub
  • 09 July 2026
  • Litigation and dispute resolution

The Arbitration Act 2025 – Factsheet

This factsheet outlines the major reforms and key developments introduced by the Arbitration Act 2025, including updates on summary disposal, jurisdictional challenges, emergency arbitrators, arbitrator disclosure duties, and governing law in arbitration proceedings.

art
  • 09 July 2026
  • Immigration

Right to Work Checks are changing from 1 October 2026: Is your business ready?

The Home Office’s new rules, effective 1 October 2026, will overhaul right to work checks and raise the risk of civil penalties for UK businesses.

art
  • 08 July 2026
  • Privacy and Data Protection

ICO prosecutes employee under the Data Protection Act for forwarding client data to his personal email address

The issue of employees taking confidential business information or personal data when moving to a new employer remains a significant concern for businesses.

Pub
  • 07 July 2026
  • Litigation and dispute resolution

Accelerating arbitration: Expedited procedures and key changes in the new ICC Rules – Episode 2

In episode 2, Jack Hobbs (Clarkslegal) and Christopher Howitt (Three Stone) explore how the latest expedited and highly expedited procedures under the ICC Arbitration Rules 2026 are transforming the landscape of dispute resolution.

art
  • 07 July 2026
  • Employment

6 month unfair dismissal rights: What employers need to know

Under the new Employment Rights Act 2025 the minimum period of service required to qualify to bring a statutory claim for unfair dismissal has been reduced from 2 full years to 6 months from 1 January 2027 onwards.  

art
  • 02 July 2026
  • Litigation and dispute resolution

Litigation and Artificial Intelligence: Where are we now?

In the recent case of Cork and another v Smith, the High Court publicly admonished a law firm and two of its solicitors after they had produced and submitted two AI-generated letters to the court containing misleading and false information in relation to a block transfer application made under Rule 12.37 of the Insolvency (England and Wales) Rules 2016.