EU REFERENDUM Q&A

The following Q&A answer the most frequently asked questions about the possible consequences of the leave result on the industry, both for personal and investment banking.

SECTION ONE: HOW WILL THE LEAVE RESULT AFFECT PERSONAL BANKING?

Q: Will banks still be able to serve me following the Leave result?

A: Yes. Banking services will continue as normal for the foreseeable future. Any effects of a leave result could take some time to resolve and any changes to banking will be over a long period of time.

Q: Will I still be able to change Pounds into Euros within the UK?

A: Yes. The ability to exchange currency will not change and it will continue to be subject to exchange rate changes.

Q: Will I be able to use cash machines and pay by my debit/credit card on the Continent?

A: Yes. The use of cash machines and how customers use their cards to pay for goods or services will not be affected.

Q: Will I still be able to bank online/via mobile etc. when travelling on the Continent?

A: Yes. Online and digital banking will not be affected, but roaming charges might change over time so customers are advised to check tariffs with their provider.

Q: Will I still be able to make SEPA (ie euro) payments from or to the UK?

A:  Yes. You will still be able to make and receive SEPA payments as you have always done. There might be changes over the longer term but there would be no immediate change. 

Q: Will customers continue to be protected by the Financial Services Compensation Scheme (FSCS)?

A: Yes. The Scheme is written into UK law and this would only change if it were repealed in the UK Parliament.

Q: My travel insurance is linked to my current account, will I be continued to be covered for my holidays?

A: There should be no change to individual policies customers are advised to check with their insurer before they travel.

Q: Is my money safe if the UK leaves the EU?

A: Yes.  Customers’ money will continue to be protected by the Financial Services Compensation Scheme. Anyone can check whether the firm their savings are invested with is part of the scheme athttps://protected.fscs.org.uk/money-protection-checker/

Q: What will happen to the interest rates on my [mortgage/saving] products if the UK leaves the EU?

A: It is too early to tell how a ‘leave’ vote will affect interest rates and how it will change savings/ mortgage rates.

Q: I am based in the European Union [or I am planning on moving elsewhere in the European Union]. Will I still be able to get a UK current account from abroad?

A: Yes, anyone based in the European Union will still be able to access UK current accounts, subject to each bank’s policies and criteria.

Q: I am a foreign national living in the UK, will the leave result impact my bank account? 

A: Under the Immigration Act (2015) banks are only allowed to open/ maintain accounts for people who are legally resident in the UK.  If a customer is an EU citizen, their resident status may change over time and they will possibly need to obtain a visa and/ or work permit in future. Depending on their country of origin outside the EU, they may already need a visa or work permit. Anyone in doubt should contact the Home Office for more information.

SECTION TWO: HOW WILL THE LEAVE RESULT AFFECT INVESTMENT AND WHOLESALE BANKING?

Q: Will the banks still be subject to current and planned EU rules?

A: Yes, organisations and services will continue as normal for the foreseeable future. The UK will remain a member of the EU during the negotiation period and therefore all organisations will be subject to EU rules.

Q: What does the result mean for London-based international investment and wholesale banking operations?

A: Banking services will continue as normal for the foreseeable future. Any consequences of the ‘leave’ result could take some time to resolve and any changes to banking would take place over a long period of time.

Q: What would be the loss of passporting rights be?

A: Passporting rights allow banks authorised in one member state to do business in any other member state without the need for a separate host state authorisation. Any effects of a ‘leave’ result on passporting could take some time to resolve and any changes to banking would take place over a long period of time. Current rules and regulations will continue for the foreseeable future.

Q: Are banks prepared for the potential impact of the ‘leave’ result?

A: A significant amount of contingency planning has already been undertaken and the industry is well prepared, with increased capital and liquidity. Banks will now assess what the result means for staff and their customers in the long term.