RCI after Brexit?

Silly_Shirl

My partner has his savings in RCI bank, which is covered by the FGDR (Fonds de Garantie D!pôts et de R!solution), the French deposit protection scheme, and are not protected by the UK Financial Services Compensation Scheme. What will happen after Brexit? Will it still be safe, and accessible?

djpailo

Nobody knows.

Silly_Shirl

Should he pull his money out now, before Armageddon?

Silly_Shirl

RCI are still being rolled out in top ten on comparison sites.:huh:

cloud_dog

Silly_Shirl wrote: »

My partner has his savings in RCI bank, which is covered by the FGDR (Fonds de Garantie D!pôts et de R!solution), the French deposit protection scheme, and are not protected by the UK Financial Services Compensation Scheme. What will happen after Brexit? Will it still be safe, and accessible?

I believe they are working towards utilising the UK compensation scheme. You should have received the below communication from them:

As you may know, we currently operate our UK business through the UK branch of our French parent company, RCI Banque SA. In preparation for the UK leaving the European Union in March 2019, we have been working with the Prudential Regulation Authority (PRA) and Financial Conduct Authority (FCA) to obtain a UK banking licence so that we can continue to offer you our award-winning savings products and customer service. Once the PRA have approved our UK banking licence, RCI Bank UK Limited will be authorised by the PRA.

Following the implementation of the Scheme, all customers will be covered by the FSCS. The FSCS provides most customers, including private individuals and small businesses (which includes companies, as long as they meet the "small company" criteria set out in the relevant Companies Act) with assurance that up to £85,000 of money deposited with an authorised deposit taker will be protected if the bank becomes unable to repay money deposited with it.

For joint accounts each account holder is treated as having a claim under the FSCS in respect of their share. So, for a joint account held by two eligible depositors, the maximum amount that could be claimed under the FSCS would be £85,000 each (making a total of £170,000). The £85,000 limit relates to the combined amount in all the eligible depositor's accounts with the bank, including their share of any joint account, and not to each separate account.

You have the right to withdraw the amounts exceeding £85,000 in the three months following this letter without penalty or loss of interest.

The FSCS also provides a £1,000,000 protection limit per individual for certain types of temporary high balances held with a bank for a period of up to six months in the event the bank holding the deposits fails. Proceeds from certain life events such as the sale of a house, redundancy payment, inheritance and certain court judgements fall within the scope of this protection limit. Further details on the life events covered by the temporary high balance protection are available on the FSCS website.

EDIT: Above extract issued on 20 December 2018

soulsaver

Silly_Shirl wrote: »

Should he pull his money out now, before Armageddon?

It'll be safe.. but it isn't the best paying account available anyhow, so why take any risk?

cloud_dog

Silly_Shirl wrote: »

RCI are still being rolled out in top ten on comparison sites.:huh:

Why wouldn't they????

Mnd

Why do you think there will be Armageddon?

Silly_Shirl

So transfer then? I've waited 2 weeks so far, for an ICICI account to be up and running, and still 2 working days, then 5 working days, before useable... so don't think I'll advise him to go with them, if that's anything to go by!

cloud_dog

Are you prone to worrying too much?

Silly_Shirl

Actually, at the risk of remoaners… I am a staunch leaver, just all the financial doom and gloom being bandied around, Armageddon seemed appropriate, considering the loss I've made with LC & F