Brexit
What it means for you
Following the June 2016 referendum vote to leave the European Union (EU), the UK Government started the exit process by triggering Article 50 of the Treaty on European Union in March 2017. The UK exit from the EU is being referred to as ‘Brexit’. Our number one priority is to serve and support our customers.
On 25 November 2018 the European Council announced that the EU and the UK signed a Withdrawal Agreement for the UK’s departure from the EU. The Withdrawal Deal needs to be approved by member states and the UK & European Parliaments.
The European Council has agreed to extend Article 50 until 31 October 2019. If an exit agreement is reached prior to 31 October 2019, the UK Government has the option to leave the EU at that date.
Our Brexit planning continues unchanged. This is because we have been preparing for a number of scenarios including a ‘no deal’ scenario to ensure we can continue to support our customers.
We will continue to monitor the situation and regularly review our plans to ensure we’re ready for Brexit, our aim is to support customers with the same level of service and range of products as we do today.
This website explains how we are preparing for Brexit, so that we can continue to support you in the way we do today.
What this means for you?
What this means for you?
There are no immediate changes to your everyday banking services while the UK remains a member of the EU. We are closely monitoring the situation and we’re committed to providing you with as much notice as possible should any changes be required. Our aim is to continue to provide you with the same level of service and range of products as we do today.
What this means for your business?
Regardless of the outcomes of the Brexit negotiations, we are committed to helping you and your business succeed. With our expert knowledge, we’re here to support you with the opportunities and challenges that Brexit could potentially bring to your business.
How are we planning for Brexit?
As our business is largely UK-focused, the impact on RBS is not as significant as it is on many other banks. While the EU negotiations continue, we will not know the full implications of the outcomes of Brexit. In anticipation, we’re preparing for a number of scenarios, including a no deal, so that we can continue to support our customers.
We've made good progress on our Brexit plans. We implemented our plan to use our banking entity in the Netherlands, NatWest Markets N.V. and began serving some of our non-UK EEA customers from 25 March 2019.
Based in Amsterdam, NatWest Markets N.V. will have branches in Dublin, Frankfurt, Madrid, Milan, Paris and Stockholm. NatWest Markets N.V. will offer the same products and services that NatWest Markets Plc offers today from the UK, with connections to the market infrastructure providers (needed to serve you), including trading venues and counterparty clearing houses.
We’re continuing with our plans to move our Western Europe Large Corporate business and operations to NatWest Markets N.V. We’ll make sure there’s minimal disruption to our customers’ business and we’ll provide our customers with our full support throughout the transition.
We also have new Banking licences for our Branch in Frankfurt, which allows us continued access to the Financial Market's infrastructure in Germany to support Euro payments and Euro Liquidity via the Bundesbank.
Our Ulster Bank Ireland DAC business will continue to provide services for our customers that live, invest and do business in Ireland.
We continue to work closely with the UK Government, Bank of England, HMT, our regulators, the PRA (Prudential Regulation Authority) and FCA (Financial Conduct Authority) as well as UK Finance – to help us understand what Brexit means for the Financial Services sector and regularly review our plans to ensure we’re ready to meet every eventuality.
We have created these useful guides to help support our business customers further:
Brexit Frequently Asked Questions
What happens next?
The Withdrawal Deal now needs be approved by member states and the UK & European Parliaments. It is expected that the full future EU-UK deal, including for financial services will be worked through during the transition period.
What is the transition period?
In March 2018, the European Council announced the framework for a transition period, under which the UK would continue to participate in the European Single Market. This means UK banks would continue to have access to the European Single Market using financial services passporting rights. However, the transition period still needs to be approved by the UK and European parliaments, plus formally approved by the European Council so it is not yet legally agreed.
What is passporting?
Passporting allows us as a bank to sell our financial services in the EU, so that it’s as easy to lend to a customer in Madrid as it is to lend to a customer in Manchester. It also means that some of the foreign banks who have offices here in the UK can sell their financial services into EU countries and in the UK.
How will the Bank operate if EU passporting is removed?
We are a UK focused bank, so for the vast majority of customers, our services and products will remain the same after Brexit. However, to prepare for the possible loss of EU passporting we will use our banking entity in the Netherlands, NatWest Markets N.V to provide continuity of service from NatWest Markets to our non-UK EEA customers. As the Netherlands is a member of the EU, we’ll be able to use EU passporting rights for NatWest Markets N.V. to serve EEA customers.
We're also preparing for the intended move of our Western Europe Large Corporate business and operations to transfer to NatWest Markets N.V. We’ll make sure there’s minimal disruption to our customers’ business and we’ll provide our customers with our full support throughout the transition.
Making these changes to our operations will allow us to continue to offer products and services to all our customers, regardless of where they live and where they do business.
Why does passporting need to be removed when we leave the EU?
Passporting is intrinsic to the Single Market and will not be available to the UK after Brexit. The UK Government in its July 2018 white paper stated that its proposal for the economic partnership would include new arrangements on services and investments that provide regulatory flexibility.
Which countries are in the EU?
The EU currently consists of:
Austria, Belgium, Bulgaria, Croatia, Republic of Cyprus, Czech Republic, Denmark, Estonia, Finland, France, Germany, Greece, Hungary, Ireland, Italy, Latvia, Lithuania, Luxembourg, Malta, Netherlands, Poland, Portugal, Romania, Slovakia, Slovenia, Spain, Sweden and the UK.
Which countries are included in the European Economic Area (EEA)?
The EEA includes EU countries and also Iceland, Liechtenstein and Norway. It allows them to be part of the EU’s single market.
Switzerland is neither an EU nor EEA member but is part of the single market - this means Swiss nationals have the same rights to live and work in the UK as other EEA nationals.
Can I still make and receive payments from EU countries?
Yes. There should be no immediate changes to how you make and receive payments to EU countries. And of course you can continue to access your bank account through the mobile app to conduct your everyday banking needs. Your usual direct debits and other payments should continue as normal.
Will I still be able to use ATMs in EU countries?
Yes. It will still be easy to use your bank card in ATMs across Europe, in much the same way as you can use it today when you go on holiday to non-EU countries, such as America or Australia. And of course you can continue to access your bank account through the mobile app to conduct your everyday banking needs.
Is my money safe?
Yes. Your money will continue to be protected by the Financial Services Compensation Scheme. More information is available at https://protected.fscs.org.uk/money-protection-checker/
Would a UK citizen living in the EU lose access to their banking in the UK?
There is as yet no specific guidance on UK banking, however there is a risk that in the event of ‘no deal’, access to certain banking services in the UK could be restricted.
Will there be any changes to my ability to make payments in Euro from the UK post Brexit?
Post-Brexit our access to euro payment capability for our customers will remain as it is today.
Further Information
For more information on Brexit:
- FCA Brexit site - https://www.fca.org.uk/eu-withdrawal
- UK Government Brexit site - https://www.gov.uk/government/organisations/department-for-exiting-the-european-union
- Confederation of British Industry (CBI) Brexit site - http://www.cbi.org.uk/business-issues/brexit-and-eu-negotiations/