There has been significant work at the national and EU level to ensure continuity of service across banking, payments, insurance and financial markets after the transition period.
Your bank or financial institution
The majority of firms providing financial and banking services into the Irish market from the UK have taken steps to ensure continuity of service after the transition period.
Since 1 January 2021 the ‘passporting’ of financial services between the EU and the UK is no longer possible.
The five largest retail banks operating in Ireland are regulated by the Central Bank. In addition, UK financial services firms operating in Ireland have had to take steps to be authorised to operate within the EU. The majority of firms have taken appropriate action to continue to provide services across the EU.
Consumers are advised to contact their banking/financial services providers if they have any concerns. The Central Bank also has more information.
Making/receiving payments through SEPA
SEPA is the Single Euro Payments Area which enables payment transfers in euro between accounts in SEPA countries.
The UK has retained its membership in SEPA and no consumer impact is expected.
Customers should contact their finance provider if they have any further queries. The Central Bank also has more information.
Credit Transfers and Direct Debits to and from the UK
From 1st January 2021, payments to and from the UK will be treated as payments to and from a third country for the purposes of what is known as the Funds Transfer Regulations (FTR). This change means that additional information, including the payer address, will be required for fund transfers between Ireland and the UK.
The majority of insurance firms selling policies from the UK and Gibraltar into Ireland have implemented plans to ensure service continuity after the transition period.
The Government has also made provision within Part 10 of the Withdrawal of the United Kingdom from the European Union (Consequential Provisions) Bill 2020 to protect consumers to ensure continuity of service for existing contracts after the transition period.
The Central Bank advises that if you have any concerns about your insurance policy, you should contact your insurance provider.
The Government has put in place dedicated legislation to support the market migration of Irish listed securities from the current UK Central Securities Depository to a Belgian Central Securities Depository in 2021. The legislation includes the Migration of Participating Securities Act 2019, Part 9 of the Withdrawal of the United Kingdom from the European Union (Consequential Provisions) Bill 2020 and the Finance Bill 2020.
Notification pursuant to Section 80(2) of the Brexit Act – Financial Services Operators and Settlement Finality
Part 9 (Financial Services: Settlement Finality) of the Withdrawal of the United Kingdom from the European Union (Consequential Provisions) Act 2020 came into effect at 23.00 (Irish Time) on 31 December 2020.
Pursuant to Section 80(2) of the Act (Temporary designation of relevant arrangement), the operator of a relevant arrangement (as defined under Section 79) shall, not later than 3 months from the date on which the operator becomes aware that this section applies to the arrangement, notify the Central Bank of Ireland and the Minister of Finance that this section so applies.
In the first instance, operators of a relevant arrangement should notify the Central Bank of Ireland by making contact through ‘email@example.com’
Subject to acknowledgement of receipt of notification from the Central Bank of Ireland, operators of a relevant arrangement should notify the Department of Finance by emailing ‘FSD.firstname.lastname@example.org’ and also at that time confirm engagement with the Central Bank of Ireland.
All notifications under Section 80(2) shall take account of the criteria for a relevant arrangement outlined in Section 80 of the Withdrawal of the United Kingdom from the European Union (Consequential Provisions) Act 2020.
The majority of businesses that trade with the UK will have contracts in place which set out the law governing their contract and the country whose courts will have jurisdiction to determine any dispute with the contract. This is common in any cross border commercial contract and will not be affected by Brexit.
Sterling and euro volatility remains a key concern and challenge for all Irish businesses across all sectors and markets. Businesses may wish to seek expert advice as to how to manage their currency exposure and take steps to mitigate against any risks.
Brexit may also have an impact on your business’ working capital needs and guidance on managing working capital is available here .
You are also advised to contact your financial advisor, your accountant, or any professional bodies you are a member of to see if they have additional advice for you.