Thousands of motorsport jobs and businesses saved from EU VNUK legislation

Thousands of motorsport jobs and businesses saved from EU VNUK legislation

FCA announces ban on certain commissions and changes to commission disclosure

On 26 February 2021 we reported on the Secretary of State for Transport’s announcement that the UK government was planning to do away with the controversial “Vnuk law” as a consequence of leaving the EU. See the article here.

If implemented, the legislation (which gets its name from a personal injury claim brought by a Slovenian worker who had been hit by a tractor) would require all motorised vehicles (including those used in motorsport) in the EU to require third party damage and injury insurance. Whilst the announcement from the Department for Transport was good news, there remained concern across the motorsport community that implementation of the Vnuk law in Europe would significantly increase insurance premiums, with businesses looking to pass the costs/make savings down their supply chains. As many such business are based in the UK, this could have had a serious impact on the UK motorsport industry.

However, following pressure from the Motorsport Industry Association, the Department for Transport and the FIA, on Tuesday 22 June 2021 the EU Commission announced that they would exclude all vehicles intended for use in motorsport from the Vnuk law. This is undoubtedly a victory for common sense in what is already a very highly regulated industry and the decision will be welcomed by all of the UK businesses who play their part in this £10bn sector.   

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