UK banks to close many ex-pats accounts after Brexit.

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galexinda
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Re: UK banks to close many ex-pats accounts after Brexit.

Post by galexinda » Thu Sep 24, 2020 8:20 pm

I have made a few enquiries, just make sure the institution is covered by the Financial Services Compensation Scheme or equivalent, depending on which country it is based in.

PolemIan
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Re: UK banks to close many ex-pats accounts after Brexit.

Post by PolemIan » Thu Sep 24, 2020 9:46 pm

Do not underestimate the complexity of this situation for the U.K. banks at the present time. I’m from a banking background, albeit not directly retail banking, but still have contacts back in the U.K. one of whom is in one of the most senior positions in retail banking to the extent that they are on the “go to jail list” for compliance and has every phone call made at work recorded for legal reasons. As it stands every U.K. bank will have to obtain a new banking licence to operate with customers located in any of the EU27 nations, and for many of the banks they will have multiple legal entities below their group level, think NatWest Group, Lloyds Banking Group etc (bonus point for remembering Smile is part of Barclays. So they are going out have to decide entity by entity, country by country which ones it make sense to continue with. They will have to keep abreast of the financial legislation in 27 countries and ensure that at all times they and their staff are compliant. The potential fines and unenforceabiltiy of debt are enormous. I’ve seen and heard people talk along the lines of “us expats have so much money with them they would be made to change things”. This is a very naive thought process. The costs associated with all this are very significant, so don’t shoot the messenger for making sweeping generalisations, but I imagine that many of us have no products with them that they actually make any money from. Again a sweeping generalisation, but most of us have probably move abroad to retire, so probably have nor little mortgage debt, little or no credit card debt and no loans to service. Packaged accounts? A loss leader. The actual money made from customers of this nature, as a proportion of customer base is so tiny it would barely register on the balance sheet. The fact that the total numbers of us expats in the EU are spread around so many banks also dilutes the number against any positive numbers.

So things could change an awful lot for us in the next few months, but again it’s possible that some may make the decision to leave things as they are, personally I’ve had one letter and I know that one bank will make the change across all accounts but haven’t gone public. Many will not yet be in a position to give advice to their call centre staff. So best to plan for the worst and hope for the best, unless of course in This crazy year we’ve had, a withdrawal agreement is reached that maintains the current position as far as financial services are concerned. The expect more changes in 2021 and beyond.

Ian

Ian

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Happy in Cyprus
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Re: UK banks to close many ex-pats accounts after Brexit.

Post by Happy in Cyprus » Fri Sep 25, 2020 2:26 am

Thank you Ian, a useful and very insightful analysis.

trevnhil
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Re: UK banks to close many ex-pats accounts after Brexit.

Post by trevnhil » Fri Sep 25, 2020 7:14 am

I think I maybe speak for many others when I say the main worry is, where can ex pats in Cyprus open another account if it turns out to be necessary ??
Trev..

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PW in Polemi
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Re: UK banks to close many ex-pats accounts after Brexit.

Post by PW in Polemi » Fri Sep 25, 2020 8:39 am

My UK account is with Nat West International in Guernsey. As this is a separate entity from NW UK, albeit under the same umbrella, I hope they remain international in their customer base.
Kay
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mike strand2
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Re: UK banks to close many ex-pats accounts after Brexit.

Post by mike strand2 » Fri Sep 25, 2020 1:03 pm

PolemIan wrote:
Thu Sep 24, 2020 9:46 pm
(bonus point for remembering Smile is part of Barclays.
Ian
Smile is part of The cooperative Bank. I just checked on line and there is no mention of any Barclays involvement, although I acknowledge Barclays could possibly be a shareholder.

https://en.wikipedia.org/wiki/The_Co-operative_Bank!

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Re: UK banks to close many ex-pats accounts after Brexit.

Post by PolemIan » Fri Sep 25, 2020 3:35 pm

Correct Mike, slight senior moment last night whilst in mid flow.

Ian

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El tel
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Re: UK banks to close many ex-pats accounts after Brexit.

Post by El tel » Fri Sep 25, 2020 7:57 pm

Ian , I agree with happy in Cyprus that your comments are an excellent insight into the potential problems of banking in the future. Let’s hope the U.K. and EU. come to an agreement over the banking sector so that this problem may be averted. Being cynical I wonder whether the banks are taking the opportunity to clear out non profitable accounts.

Terry

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mike strand2
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Re: UK banks to close many ex-pats accounts after Brexit.

Post by mike strand2 » Fri Sep 25, 2020 8:56 pm

I read that NSI have said that huge numbers invested more in Prem Bonds in July: I was one. With the UK banks paying virtually 0% interest, why wouldn't I? If I get just one 25 pound win, that would be more than my bank interest in a year! Unfortunately NSI are having to cut their returns because of this influx of additional money. I'm no banker & cannot put the two things together!

WHL
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Re: UK banks to close many ex-pats accounts after Brexit.

Post by WHL » Sat Sep 26, 2020 9:20 am

mike strand2 wrote:
Fri Sep 25, 2020 8:56 pm
I read that NSI have said that huge numbers invested more in Prem Bonds in July: I was one. With the UK banks paying virtually 0% interest, why wouldn't I? If I get just one 25 pound win, that would be more than my bank interest in a year! Unfortunately NSI are having to cut their returns because of this influx of additional money. I'm no banker & cannot put the two things together!
We did this recently, we took a big chunk out of the Bank and bought the maximum amount we could, and the first month we won a hundred odd quid, Im sure its fixed to give you a little sweetener,
as previously I had about two hundred quid in premium bonds for over fifty years without winning a bean.

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Re: UK banks to close many ex-pats accounts after Brexit.

Post by trevnhil » Sat Sep 26, 2020 9:43 am

Are people with their permanent address in Cyprus able to buy premium bonds ?
Trev..


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Re: UK banks to close many ex-pats accounts after Brexit.

Post by trevnhil » Sat Sep 26, 2020 10:42 am

I was really looking for a yes or no answer. However all I get from the link is
"Unfortunately the page you are looking for is not available."
Trev..

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PhotoLady
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Re: UK banks to close many ex-pats accounts after Brexit.

Post by PhotoLady » Sat Sep 26, 2020 10:46 am

trevnhil wrote:
Sat Sep 26, 2020 9:43 am
Are people with their permanent address in Cyprus able to buy premium bonds ?
We did when we lived in Cyprus.

This from the website:
I live outside the UK - can I invest with NS&I?
While we have always been a UK based savings provider, backed by HM Treasury, we also have customers who live outside the UK.

If you live outside the UK, or are considering moving overseas, please see below for some general guidance on saving with us. Some of our products cannot be held in certain countries due to local restrictions and some may also be liable for local tax. For detailed information you will need to check the local law or regulations in the country outside the UK you are living in or moving to.

If you move overseas, you will need to let us know so we can update your details.

https://www.nsandi.com/i-live-outside-u ... t-with-nsi
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Kia Picanto
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Re: UK banks to close many ex-pats accounts after Brexit.

Post by Kia Picanto » Sat Sep 26, 2020 11:02 am

trevnhil wrote:
Sat Sep 26, 2020 10:42 am
I was really looking for a yes or no answer. However all I get from the link is
"Unfortunately the page you are looking for is not available."
Indeed you can Trev. Initially, you apply by post. Once set up, you can do everything online. Hope this link helps.


https://www.nsandi.com/i-live-outside-u ... t-with-nsi

Kia Picanto
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Re: UK banks to close many ex-pats accounts after Brexit.

Post by Kia Picanto » Sat Sep 26, 2020 11:04 am

Oops! Beaten to it by Photolady 😀

WHL
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Re: UK banks to close many ex-pats accounts after Brexit.

Post by WHL » Sat Sep 26, 2020 12:40 pm

trevnhil wrote:
Sat Sep 26, 2020 9:43 am
Are people with their permanent address in Cyprus able to buy premium bonds ?
We have a home in London. but I think you can still buy premium bonds if you live out side the UK

https://www.nsandi.com/i-live-outside-u ... 20Sterling

trevnhil
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Re: UK banks to close many ex-pats accounts after Brexit.

Post by trevnhil » Sat Sep 26, 2020 12:52 pm

Thanks for the positive replies.. :-)
Trev..

galexinda
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Re: UK banks to close many ex-pats accounts after Brexit.

Post by galexinda » Thu Oct 01, 2020 10:03 pm

I found this informative article about the EU passporting system for banks:

https://www.bba.org.uk/wp-content/uploa ... QB-3-1.pdf

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mike strand2
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Re: UK banks to close many ex-pats accounts after Brexit.

Post by mike strand2 » Fri Oct 02, 2020 12:11 pm

trevnhil wrote:
Sat Sep 26, 2020 12:52 pm
Thanks for the positive replies.. :-)
DO bear in mind that strictly speaking, although winnings from PB's atre tax free in the UK, they are not in CY. :(

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