Guidance

Financial services for UK residents, businesses and organisations if there’s no Brexit deal

Updated 29 October 2019

This guidance was withdrawn on 10 February 2020

This page has been withdrawn as it is out of date

1. Stay up to date

The UK is leaving the EU. This page tells you how to prepare for Brexit and will be updated if anything changes.

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This guidance is for people, businesses or other organisations 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, businesses and other organisations 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 feasible the same rules will apply to financial services in the UK after the UK has left the EU, with some small changes to reflect the UK’s new position outside the EU. The government and regulators have also taken steps 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 Brexit, with some small changes to reflect the UK’s new position outside the EU.

But, if you or your business or organisation fit into any of the categories below, you may be affected if the UK leaves the EU without a deal. Your financial services provider will be able to tell you how the UK’s exit from the EU will affect you.

2. Sending or paying in Euros electronically

You will still be able to do so, although the cost and time for Euro payments and transfers may increase depending on your provider’s arrangements. This is also true if you want to receive or be paid in Euros electronically.

3. Using your UK credit or debit 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, this will still be possible, although it may become more expensive and a surcharge may apply. This is also true if you have a credit or debit card issued by an issuer based in the EU, Norway, Liechtenstein or Iceland and want to use it in the UK. Merchants in the UK will continue to be banned from applying surcharges to payments made by a consumer credit or debit card issued by an issuer based in the UK.

4. Taking out travel insurance

You should make sure you understand the terms and conditions of the travel insurance policy, and that you are happy with the level of healthcare and travel disruption cover it provides. 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 after the UK leaves the EU. If you have questions about what your travel insurance policy covers, you may wish to contact your insurer.

5. Insurance, personal pensions and annuities

If you have insurance, a personal pension or annuity from a firm based in the EU, Norway, Liechtenstein or Iceland, your coverage should not change because of Brexit.

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.

6. Banking with a UK branch of an EEA based firm

Your depositor protection will change and will now be provided by the UK Financial Services Compensation Scheme (FSCS). This protection will be up to £85,000. If you have concerns about your deposit protection, please contact your bank which will be able to provide clarification.

7. Business insurance

If you have insurance from a firm based in the EU, Norway, Liechtenstein or Iceland, your coverage should not change because of Brexit.

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.

8. Paying by credit or debit card

Processing cards issued by a provider in the EU, Norway, Liechtenstein or Iceland may become more expensive if your acquirer (a bank or other financial institution that processes card payments on behalf of merchants) is based in the UK. This is also true if you process cards issued by a provider based in the UK and your acquirer is based in the EU, Norway, Liechtenstein or Iceland.

9. Sending Euros electronically (as a business)

You will still be able to do so. The cost and time for euro transfers may increase.

10. 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.

11. 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 with the Home Office and UK Finance’s Take Five campaign.

12. Further information

• information on Brexit for consumers from the Financial Conduct Authority
• Information on Brexit from the Financial Services Compensation Scheme
• advice on staying safe from scams from the Home Office and UK Finance ‘Take Five’ Campaign