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. This exit is being referred to as ‘Brexit’.
The UK is due to leave the European Union (EU) on 29 March 2019. Until then, the UK is still a member of the EU. So for the time being, nothing has changed and we would like to reassure you that there will be no immediate impact on your everyday banking services.
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 on 29 March 2019. The Withdrawal Deal now needs to be approved by member states plus the UK and European parliaments.
There are no immediate changes for our customers. Our Brexit planning will continue unchanged. We’ll continue to monitor the political situation and review our plans with the aim to support our 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?
While the EU negotiations continue, the full implications and outcomes of Brexit are unknown, however we are preparing for a number of scenarios to ensure we’re ready to embrace the outcomes whether a deal is negotiated or not.
As our business is largely UK-focused, the impact on RBS is not as significant as it is on many other banks. Maintaining our Western European business is a core element of our contingency plans and one option is to use our existing banking entity in the Netherlands to provide continuity of service from NatWest Markets to our EU customers. Because the Netherlands is a member of the EU, we’ll be able to use EU passporting rights for NatWest Markets N.V. to continue to serve EEA customers.
NatWest Markets N.V. is headquartered in Amsterdam, our plan is to set up branches in major European financial centres. NatWest Markets N.V. will offer the same products and services that NatWest Markets offers today from the UK, with connections to the market infrastructure providers needed to serve you, including trading venues and counterparty clearing houses.
Our Ulster Bank Ireland DAC business will continue to provide services for our customers that do business in Ireland.
We’re involved in a number of consultations with key UK bodies to help us keep abreast of the latest developments for the Financial Services sector, post Brexit, and will regularly review our plans to ensure we are Brexit ready. These bodies include UK Government, Bank of England, UK Finance, HMT (Her Majesty’s Treasury) and our regulators the PRA (Prudential Regulation Authority) and FCA (Financial Conduct Authority).
We will continue to monitor the situation, assess how the final agreement will affect you and keep you updated on how we can help you through any changes this will bring.
Key dates at a glance
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 does it mean for me as a customer?
Nothing has changed as a result of the announcement. There will be no immediate impact on your everyday banking services.
The UK is expected to remain a member of the EU until 29 March 2019 and the transition period that then follows should be on the same terms we have today.
What is the transition period?
It is a period of time between 29 March 2019 and 31 December 2020 to allow businesses and others to prepare for the moment when the new post-Brexit rules between the UK and the EU begin.
In March 2018, the European Council announced that a political deal on a transition period had been agreed ahead of the UK’s withdrawal from the EU. And at the end of April 2018, the European Central Bank indicated that passporting rights would remain in place for UK firms during the proposed transition period.
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 focussed 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 are going to use, our banking entity in the Netherlands. Moving EEA customers over to NatWest Markets N.V. so we can keep serving our EEA customers as we do today. 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.
Preparing for the intended move of 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.
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/