Banking, insurance and other financial services if there’s no Brexit deal: information for UK residents and businesses
Updated 15 February 2019
This guidance is for people or businesses that have a financial services product, for example:
- a bank account, debit or credit card
- insurance
- a product that provides an income in your retirement, such as a personal pension or annuity
We expect the majority of people will see limited, or no, difference after the UK leaves the European Union (EU), and will be able to use and rely on their bank accounts, insurance, personal pensions or annuities, and other services whether they are provided by a firm based in the UK, Europe or elsewhere in the world.
This is because the government and the regulators have taken steps to ensure that wherever practicable the same rules will apply to financial services in the UK after the UK has left the EU, and to enable financial services providers based in the EU, Norway, Liechtenstein and Iceland to continue providing services in the UK for a minimum of three years after EU Exit, with some small changes to reflect the UK’s new position outside the EU.
But, if you fit into any of the categories below, you may be affected by the UK leaving the EU on 29 March 2019 (may also apply to new exit date on 31 December 2020). Your financial services provider will be able to tell you how the UK’s exit from the EU will affect you.
1. Regardless of where you live, if you…
Want to send or pay in Euros electronically
You will still be able to do so, although the cost and time for Euro payments and transfers may increase.
Have a UK bank account and want to use your card to pay merchants in the EEA
This is unlikely to change as a result of leaving the EU; however, it may become more expensive. This is also true if you have a bank account with a provider based in the EU, Norway, Liechtenstein or Iceland and want to use your bank card in the UK.
2. If you live in the UK and you…
Are taking out travel insurance for a trip to the EU, Norway, Liechtenstein or Iceland shortly after the UK leaves the EU
You should make sure you understand the terms and conditions of your travel insurance policy, and that the policy is sufficient to cover possible disruption. The FCO has guidance on what your travel insurance policy should cover.
If you already have travel insurance to cover your trip, your insurer should let you know if there will be any changes to the way your policy is serviced that will affect you after the UK leaves the EU. If you have questions about what your travel insurance policy covers, or whether the policy is sufficient to cover possible disruption, you may wish to contact your insurer.
Have insurance or a personal pension or annuity from a firm based in the EU, Norway, Liechtenstein or Iceland
Your coverage should not change because of EU Exit.
If you have difficulty when the time comes to renew your insurance, you should shop around to find insurance that works for you. You can use the British Insurance Brokers’ Association ‘Find a Broker’ service to help you shop around.
3. If you are a business in the UK and you…
Have insurance from a firm based in the EU, Norway, Liechtenstein or Iceland
Your coverage should not change because of EU Exit.
If you have difficulty when the time comes to renew your insurance, you should shop around to find insurance that works for you. You can use the British Insurance Brokers’ Association ‘Find a Broker’ service to help you shop around.
Accept payment by card
It might become more expensive for you to accept payment with cards issued in the EU, Norway, Liechtenstein or Iceland. It might also become more expensive to use a merchant’s acquirer (a bank or other financial institution that processes card payments on behalf of merchants) located outside the UK. This is because the regulations that restrict fees will only apply to cards issued in the UK and when the acquirer is also in the UK. These fees are typically passed on to merchants.
Want to send Euros electronically
You will still be able to do so. The cost and time for euro transfers may increase.
4. Financial advice
Before making any significant financial decisions, you may want to seek impartial information or advice. You can get free and impartial information from the Pensions Advisory Service or the Money Advice Service. You could also use a financial adviser if you want advice. The Financial Conduct Authority has some information about finding a financial adviser. You’ll usually have to pay for their services.
5. Staying safe from scams
During this period of change there may be a greater risk of scams. Find out more about financial fraud and scams, and how to protect yourself.
For further information, read:
