Access to bank accounts in UK and protection of depositors - EBA Statement in relation to Brexit
EBA Statement in relation to Brexit:
Access to bank accounts in UK and protection of depositors
Under EU law, after the end of the transition period, consumers in the EU may maintain their existing bank accounts held with UK financial institutions, subject to the relevant UK legal requirements. However, consumers need to consider the following:
•If the consumer’s bank account is held with a UK financial institution authorised in the UK, the deposit protection rules applicable in the UK will apply, and these may be different to those applicable to bank accounts held in the EU.
•If the bank account is held with an EU-based branch of a UK financial institution, it will no longer be covered by the UK deposit guarantee scheme (as explained by the UK authorities), consumers are advised to check with their financial institution (branch) or national supervisory authorities in their Member State whether such deposits will be protected by the deposit protection scheme in the relevant Member State.
If the consumer’s bank account is held with a UK-based branch of an EU-authorised institution, it will be covered by the UK deposit scheme based on the information currently available. However, this could change after the end of transition period and such deposits may or may not be protected by the UK or a national deposit protection scheme in the EU.
Should consumers hold such accounts and not yet be aware of the applicable deposit protection arrangements, they are recommended to contact their financial institutions they are holding deposits with or national supervisory authorities to obtain more information.
Financial Services Compensation Scheme
T: 020 7375 8623
FSCS protects deposits, insurance and investments as well as mortgage advice, and has helped millions of people and businesses since 2001. The financial services industry funds the scheme.