FCA updates - Brexit impacts for credit institutions and EEA retail banking

FCA updates – Brexit impacts for credit institutions and EEA retail banking

FCA updates – Brexit impacts for credit institutions and EEA retail banking


  • This consultation is important for all organisations within UK financial services
  • The FCA is continuing to issue many updates to all regulated firms with information available on its website; webpage examples include:
  • Recent updates have covered requirements including the EEA customers of UK firms, processes for making payments for EEA customers and confirmation that UK credit institutions cannot operate in the Netherlands after the end of transition (that is, from 1 January 2021)
  • Other EU countries are expected to follow this first regulatory example


From 11pm on 31 December 2020, EU law will no longer apply in the UK and the current ‘passporting’ system will end.   If any firm has any customers in the EEA, it needs to have decided on its approach to servicing those existing contracts.

Firms must continue to service customers in line with local law and local regulators’ expectations as well as being guided by achieving appropriate outcomes for customers.

This applies to firms in all sectors. If any firm decides to stop servicing customers in the EEA after the transition period, the FCA expects that firm to treat its customers fairly.

Some UK banks are notifying EEA-based customers that they will be closing their bank accounts after the transition period because of Brexit.

All firms with customers in the EU must review their capability to make and receive payments to and from an overseas account.   All affected firms need to identify impacted customers and work to implement alternative arrangements so that they can continue to benefit from their product.

The Dutch National Bank (DNB) has published a statement confirming that UK credit institutions cannot provide current or savings accounts to retail customers in the Netherlands following the end of the transition period.

There are specific issues that firms might need to consider when deciding how to implement the DNB’s overall approach set out in its statement.

Timeline with relevant dates to be logged on regulatory calendar

  • Firms need to be ready for new operating conditions from 1 January 2021

Next steps

The FCA asks all firms to proactively prepare fully and to refer to its Brexit webpages.

If anyone has specific questions or needs any advice, contact our specialists.


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