', UK expats who live in the Netherlands and Slovakia face having their personal bank accounts closed by Britain's biggest bank Lloyds after Brexit, Barclays has apparently said savings and current accounts for expats in Italy, Estonia, Slovakia and Belgium will be terminated. ... meeting their requirements – those passporting rights have been withdrawn. One UK expat living in Greece, Phillip Moss, told This is Money he and his wife kept their Halifax account open for the purpose of having their private and state pensions paid into it, rather than their local Greek account. Frankfurt am Main, 9 July 2020. Key points • The EU passporting system for banks and financial services companies enables firms that are authorised in any EU or EEA state to trade freely in any other with minimal additional authorisation. Brexit warning: Britons set to lose bank accounts as all-important deadline approaches BREXIT talks are ongoing, however many Britons are being told … 'Passporting' rights allow UK banks to operate across the European Economic Area which comprises of the EU's 27 member states as well as Norway, Iceland and Lichtenstein. Some 13,000 customers of Lloyds Banking Group, including stablemates Halifax and Bank of Scotland, will have their accounts closed, including retail customers in the Netherlands and Slovakia, and business banking customers in Germany, Italy, Ireland, the Netherlands and Portugal. 'The key for expats is not to panic', Rob Hallums, founder of the financial website Experts for Expats, said. So we were faced with loads of problems. The latter has stated its intention to move “hundreds of bankers” out of London and into continental Europe. At the beginning of November, I was told that they are also going to close my account on 30 Dec 20. A woman wearing a protective face mask crosses the road in front of the Bank of England in what would normally be the morning rush hour in the City of London on March 17th, 2020. Email: danny.hussain@mailonline.co.uk, Jack Maidment, Deputy Political Editor For Mailonline. From January 1 following the end of the transition period, UK banks will be deprived of their "passporting" rights that have allowed them to offer services across the European Union. 'When I first opened a bank account in 1962 it took a 15 minute interview with the Bank manager. The United Kingdom (UK) left the European Union (EU) on 31 January 2020. Britain’s departure from the European Union on 1 January means that banks and financial entities based in the United Kingdom have now lost their licence to operate on Portuguese territory Standard Chartered is one, and the other is the U.S. bank Morgan Chase. BBA Brexit uick Brief What is ‘passporting’ and why does it matter? British-based banks, insurers and asset managers have used passporting for years to sell products and services across the EU. The Financial Conduct Authority has reminded firms to be ready for the end of the transition period in one month’s time. This has prompted many senior staff to relocate to other European hubs such Frankfurt and Paris, the latter being attractive because of the prospect of lower income taxes. Sign up for free newsletters and get more CNBC delivered to your inbox. 'We have had a Barclays Bank Account, in the UK since 1973, we also had (it was withdrawn from us in November of this year) a Barclaycard for many many years. Asked whether future deals with the EU could give the UK banks additional rights, Mr Beaune said: "No, passporting is over, that is where I mentioned the consequences of Brexit. We have been banking with Lloyds for over 50 years. The impact of lost passporting rights on the UK financial services sector and its economy could be huge. The comments below have not been moderated. British banks lose passporting over Brexit . Data is a real-time snapshot *Data is delayed at least 15 minutes. A Division of NBCUniversal. NatWest Chairman Howard Davies said that while U.K.-focused banks were largely prepared for a "hard" Brexit, "what we can't prepare for is the uncertainty which persists. © 2021 CNBC LLC. Got a confidential news tip? The 'passporting' of payments in the post-Brexit picture James Borley, Compliancy Services Ltd, Client director, London, 3 March 2021. Global Business and Financial News, Stock Quotes, and Market Data and Analysis. As such, UK-EU commerce is left in an ambiguous no man’s land. 'Things are getting desperate what with the Christmas holidays approaching, limited postal services from Cyprus due to lack of aircraft and the vrus, but I'm sure that there are others worse off.'. Michael Fitzgerald said: 'We are affected by the closing of our accounts in the UK. The UK left the EU on 31 January 2020 with a Withdrawal Agreement and … It is a blow to those who keep their UK account open when they move abroad so they can receive their state or private pension into it, who receive income from renting out property or from UK-held investments, or simply to maintain ties to their home country. Snatching victory from the jaws of defeat, the United Kingdom and the European Union finally agreed a trade deal at the end of last year, just when the Brexit … 'There are options available and you should not make snap decisions without doing the necessary research first, so be sure to do your own research into the best options available. Play it now. The FCA will continue to provide regular updates on its dedicated Brexit webpages, and firms can also call the FCA Brexit information line (0800 048 4255) if they have any further questions. Businesses have been left to devise their own mitigating measures in order to maintain international operations. By Essential Business. However, once the Brexit transition period ends on 31 December, this passporting arrangement will no longer be in place – that is, unless a specific agreement to carry it on is reached as part of a Brexit deal. For instance, Italy on Sunday announced that it is allowing U.K. financial companies to keep operating as they are in the country for another six months. He added: 'The problems of the virus have escalated the inefficiency of the various bureaucracies I'm having to deal with. The two sides have committed to releasing a memo of understanding within twelve weeks that will give further clarity on these equivalence rules. Passporting blues At its most basic level, Brexit means that the right to do business between the UK and Europe is no longer a given. Long term, industry players are still positive on London's fortunes as a global financial hub, with one hedge fund manager telling CNBC that he would still be willing to back the U.K. as "our business is largely immune to the changes and most aspects of the City are very reliant on talent, knowledge and relationships and for a lot of reasons this is embedded in the U.K.", Natwest's Davies echoes this view, saying London will remain the largest financial center in Europe for the foreseeable future, but the extent that it can "retain intra-EU business will depend on the new arrangements on regulatory cooperation and equivalence. When the UK was part of the EU, UK banks had the ability to offer accounts and services to people in other EU countries, under a system called “passporting”. banks. "London is not just a European financial center but a global center. Douglas Flint, chairman of Standard Life Aberdeen, told CNBC's Squawk Box that there does appear to be "a general recognition that financial stability is too important to risk by having a clumsy exit.". Following the end of the Brexit transition period, EEA-based firms and investment funds can no longer passport into the UK. s Britain leaves the EU, UK banks are having to close thousands of expats' bank accounts and credit cards because the government failed to gain so-called "passporting" … Worried expats have got in touch with the MailOnline to share their banking woes ahead of the end of the Brexit transition period. Photo: Shutterstock . Withdrawal of the United Kingdom from the European Union (Brexit) became a major challenge for the European community, affecting many political and economical aspects as well as introducing disruptions into everyday life of millions of people living in Europe. The EU is planning to allow EU banks access to UK clearing houses until the middle of 2022 in order to allow the EU time to develop its own domestic clearing houses. This is known as passporting, a system for banks in the EU which allows them to trade freely in any other state in the European Economic Area (EEA) … We immediately phoned Lloyds and were told that they did not have a trading license in the Netherlands and Slovenia and therefore had to close our accounts. 'In order to maintain a UK based bank, we have felt it necessary to open a special expats account with HSBC which means we must maintain a minimum balance of 50,000 pounds. 'Continuing to provide services even on a passive basis may be viewed as a criminal act.'. Revolut will hire up to 50 staff in Ireland this … Government threatens rogue London councils with legal action... MI6 boss pays tribute to ex-agent John le Carré who 'left... Do you know someone affected by this? In October, EY estimated that the total number of financial services jobs to have left the country since the Brexit referendum was just over 7,500, an estimate that falls short of the gloomy scenario of hundreds of thousands that was forecast by some think tanks in 2016. HSBC customers are currently able to keep their accounts open providing they use it once every 12 months. A loss of passporting will limit EU customers from obtaining integrated banking services from UK based banks ... BBA Brexit Quick Briefs are a series of short papers intended to inform readers about key commercial, regulatory and political considerations around Brexit. Former RAF serviceman Mike Jones said: 'At the beginning of November, I was told that they are also going to close my account on 30 Dec 20. These transitional arrangements have been extended until Friday 31 December 2021 by a further SI (SI2020/1274) and … Brexit: FCA Reminds Firms On Passporting, Transition Rules & More. The end of the 'standstill' post-Brexit transition period on December 31 will see British banks having to abide by different rules if they want to operate in mainland Europe. 'The impact on each customer will vary depending on the operating model of their bank or provider, the product or service being provided, and the legal and regulatory framework in the country in which they are resident. So there is a limit to what financial institutions can do when there are still very significant moving parts here," he added. This leaves two real options for those impacted who need access to a sterling account. The approach so far has been piecemeal and on a temporary bilateral basis. With no such deal confirmed, UK banks are left trying to fulfil and negotiate the stipulations from every EEA country’s regulators. 'Impacted customers resident within the EEA should be contacted by their provider to inform them of any changes to the services they receive and any actions they need to take.'. British banks will lose “passporting rights” to do business in the European Union after Brexit, the EU’s chief Brexit negotiator has said. Standard Chartered is one, and the other is … Tim Ross. If you are one of the tens of thousands worried about your bank or credit card, here are some answers to the most asked questions about bank passporting. These passports are Failure to provide a substantial replacement would do significant damage. Snatching victory from the jaws of defeat, the United Kingdom and the European Union finally agreed a trade deal at the end of last year, just when the Brexit … They will lose what is known as EU ‘passporting’ rights from Dec 31, prompting a service shake-up. Meanwhile, Santander has reportedly told expats they can keep their current mortgage but will not be able to borrow any more money. Eea-Based firms and investment funds can no longer accepting comments on this article banks are left trying get... 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