Lloyds, Halifax and Barclaycard are among the many huge names who’ve began telling prospects that as a result of rule adjustments linked to Brexit they are going to be closing accounts – although in some instances the state of affairs is determined by which European nation you reside in. Many different banks have refused to rule out closing accounts, saying they’re carefully monitoring the state of affairs.
In case your account is being closed you should still have the ability to open one other with a distinct UK financial institution, or might be able to use a neighborhood financial institution as a substitute – see extra assist beneath.
For extra on how Brexit impacts your funds and client rights, see our 20 Brexit need-to-knows.
Why are UK banks closing expats’ accounts?
Some UK banks are closing accounts now due to how Brexit is prone to change ‘passporting’ preparations on the finish of this 12 months.
‘Passporting’ is when UK banks are allowed to supply companies to prospects in different states within the European Financial Space (EEA) – that is the European Union plus Iceland, Liechenstein and Norway – with out having to get direct authorisation in these states. Present passporting guidelines are set to finish on 31 December except a brand new settlement is reached with the EU.
What meaning is that as issues stand, from 1 January 2021 every UK financial institution might want to have separate authorisation in each EEA nation it needs to function in. This could imply making use of for a licence in any of these international locations it would not already commerce in. Consequently, some banks have determined to easily shut accounts in international locations the place they not want to function.
The difficulty has been flagged by the Treasury Committee, with its chair Mel Stride this week calling for individuals to be given ‘enough warning’ if their account is being closed. He has written to the monetary regulator asking it to set out how a lot discover banks ought to give.
Which banks are closing expats’ accounts?
It is not instantly clear what number of are affected by the closures – Lloyds, Halifax and Financial institution of Scotland have stated they plan to shut 13,000 accounts in whole, although others have not given figures. But it surely’s doable bigger numbers could also be affected sooner or later, with many Brits resident in Europe – in response to latest estimates from the United Nations, some 1.4m individuals born in Britain reside within the EU.
Whereas a couple of banks have already began writing to prospects to inform them of closures, many extra have stated they’re nonetheless monitoring the state of affairs. This is what the large suppliers have advised us – if you happen to’ve been advised your financial institution’s closing accounts and it is not on this record, tell us at email@example.com: