Information for customers of UK financial institutions after Brexit

Published: 11/1/2021

After 1 January 2021, the United Kingdom (UK) financial institutions not holding a valid authorisation obtained from the supervisory authorities in the European Union (EU) have lost the right to provide financial services in the EU.

If they intend to continue to provide financial services, the UK financial institutions need to ensure that they offer these services through entities that are duly authorised in the EU. The UK financial institutions that have chosen to cease their activities in the EU are required to finish off transactions with customers without causing detriment to consumers.

Following the UK's exit from the EU changes have also occurred in cross-border payments. Payment service providers having their head office in the EU need to provide more information regarding the payer for cross-border payments and direct debits from the EU to the UK, compared to intra-EU transfers. If you are operating with a UK-based payment service provider, you may be asked by the payment service provider to provide these additional details.

Under EU law, you may maintain your existing bank accounts held with UK financial institutions, subject to the relevant UK law, which also applies to the deposit protection rules.

Should you have concerns about the availability of financial services offered by UK financial institutions, you may wish to contact your financial institutions directly and seek information regarding the continuity of the provision of financial services.

For additional communications and guidance about the UK withdrawal from the EU and its impact on the provision of financial services, please consult the websites of the European Banking Authority or the European Commission.