Brexit, Expats and U.K. bank Accounts

wmb194

headers47 said:

I have written to the CEO of my U.K. bank to ask for clarification of their position.

Which bank are you worried about? Anecdotally we're only hearing reports of problems with Lloyds Banking Group in the Netherlands and one poster wrote that someone at Lloyds told them it also affects one other country, IIRC Slovakia. I'm tempting fate by writing this but given the very late stage in the Brexit process and the short notice from Lloyds it smacks to me of a panic at Lloyds that it's messed something up in these jurisdictions rather than any broad systemic issue.

headers47

wmb194 said:

headers47 said:

I have written to the CEO of my U.K. bank to ask for clarification of their position.

Which bank are you worried about? Anecdotally we're only hearing reports of problems with Lloyds Banking Group in the Netherlands and one poster wrote that someone at Lloyds told them it also affects one other country, IIRC Slovakia. I'm tempting fate by writing this but given the very late stage in the Brexit process and the short notice from Lloyds it smacks to me of a panic at Lloyds that it's messed something up in these jurisdictions rather than any broad systemic issue.

NatWest won’t come out of the woods and say what they are doing. They are waiting till the last minute. Well that’s no blinking good for me as if they withdraw then I will be in a very difficult position with no time to sort it out.

headers47

wmb194 said:

headers47 said:

colsten said:

headers47 said:

The Ulsterbank thing is the same as the NatWest statements.  They aren’t committing themselves about what they’ll do after 31/12 and are awaiting govt advice. That’s the problem. Time is ticking by and we need to know which way to jump and no one will help us to decide.

I don't think it's the same at all. Ulster Bank do have an EU licence and as such should be legally entitled to provide banking services to EU residents. I don't believe Natwest have an EU licence as they never needed one in the last 40 years because of passporting.

I think the U.K. banks will need a licence in EACH country they want to operate in. But how do we find out who is licenced to operate where?

No, the same as it has worked up to now, they should be able to set-up a business somewhere in the EU and then passport its rights into other EU countries.

According to the lady on moneybox radio4, banks will need an operating licence in each country so they will be reviewing which countries are profitable to them.

colsten

headers47 said:

This is the response from Transferwise 
https://transferwise.com/help/articles/2965898/what-does-brexit-mean-for-transferwise

Excellent statement from Transferwise.

If only they offered deposit protection, I'd be using them all the time.

colsten

headers47 said:

wmb194 said:

headers47 said:

colsten said:

headers47 said:

The Ulsterbank thing is the same as the NatWest statements.  They aren’t committing themselves about what they’ll do after 31/12 and are awaiting govt advice. That’s the problem. Time is ticking by and we need to know which way to jump and no one will help us to decide.

I don't think it's the same at all. Ulster Bank do have an EU licence and as such should be legally entitled to provide banking services to EU residents. I don't believe Natwest have an EU licence as they never needed one in the last 40 years because of passporting.

I think the U.K. banks will need a licence in EACH country they want to operate in. But how do we find out who is licenced to operate where?

No, the same as it has worked up to now, they should be able to set-up a business somewhere in the EU and then passport its rights into other EU countries.

According to the lady on moneybox radio4, banks will need an operating licence in each country so they will be reviewing which countries are profitable to them.

The moneybox radio lady is wrong (and so was I) - wmb194 is absolutely correct, if a bank has a licence in any one EU country, they are then able to operate in any EU country under what is known as passporting arrangements. 

Thus, whilst the UK was in the EU, and for as long as the UK is still in the transition period, any FCA-authorised firm could operate in the UK and in any or all of the  27 other EU countries. The shutters will come down on this on 31/12/2020 unless a follow-on agreement is reached by them. Some banks appear to have decided that time to prepare for implementing whatever might or might not be required has run out.

[Deleted User]

colsten said:

headers47 said:

The Ulsterbank thing is the same as the NatWest statements.  They aren’t committing themselves about what they’ll do after 31/12 and are awaiting govt advice. That’s the problem. Time is ticking by and we need to know which way to jump and no one will help us to decide.

I don't think it's the same at all. Ulster Bank do have an EU licence and as such should be legally entitled to provide banking services to EU residents. I don't believe Natwest have an EU licence as they never needed one in the last 40 years because of passporting.

Ulster Bank NI and ROI operate separately with the same branding.

When the EEA/UK Passporting arrangements expire this year, each bank won't be able to operate in the other's jurisdiction.

colsten

From today‘s Times

colsten

HSBC customers should be alright: https://www.hsbc.co.uk/help/brexit/


Implications for First Direct customers: https://www1.firstdirect.com/help/useful-information/brexit/

Yahoo_Mail

I'm curious as to why these banks can't give accounts to people in the EU?

Does the Cayman Islands have passporting rights with the EU?  If they don't, why can EU citizens set up accounts there?  What about all the other countries that offer accounts to EU residents that don't have a treaty with the EU?  Possibly because they don't give a s**t and there's nothing the EU can do about it?

colsten

Each country has their own laws which need to be respected. If a Caymans-based bank is offering banking services in an EU country (do they?), they have to have the same licensing arrangements as any other bank. All banks are free to apply for a relevant banking licence.


This is not unlike the laws which apply to banks offering services in the UK. Here is a good summary of the current UK regulations: https://www.globallegalinsights.com/practice-areas/banking-and-finance-laws-and-regulations/united-kingdom