As you may have heard, the UK will leave the European Union on 31 January 2020. This will mark the start of a transitional period. During this time, the future relationship between the UK and Europe will be negotiated.
There has been a lot of uncertainty surrounding Brexit in recent years. So, it is only natural that you may have questions about how Brexit might affect you as a Revolut customer.
In short, nothing will change for now. And while we don’t yet know what the future relationship between the UK and Europe will look like, we want you to know that we are ready to protect your account and minimise any disruption - whatever the outcome.
Nothing will change for now
The transition deal agreed between the UK and EU means business-as-usual for financial service providers for the rest of 2020. This is because we can continue to serve our European customers by “passporting” our UK license across the European Economic Area (EEA).
This means we will continue to provide your account from our UK regulated entity for the time being. As always, your money is secure and your rights as a customer remain the same.
We are ready for any outcome
Over the coming months, the UK and Europe will negotiate their future trade relationship. This will affect many different industries, including financial services.
There is still a lot of uncertainty about what any future trade relationship will look like. However, here is what we do know so far:
- The transitional period will last until at least 31 December 2020.
- If the UK and Europe do not reach a deal by 30 June 2020, they could agree to extend the transitional period beyond the end of 2020.
- If the UK and Europe do not reach a deal by 30 June 2020 and do not agree to extend the transitional period, there is a chance they will fall back on “default” trade rules after 31 December 2020. Among other things, this could mean the end of financial services passporting permissions between the UK and Europe.
We are prepared for whatever happens
Previously, we set up a new regulated European entity (called Revolut Payments UAB) in preparation for a potential no deal outcome in 2019. Because this entity is based in Europe, it has the ability to passport permissions around the EEA.
If the UK and Europe cannot agree a future trade deal (or they agree a deal that does not guarantee financial services companies the ability to passport permissions between the UK and Europe), then we are prepared to switch our EEA-based customers over to this new European entity. This means you’ll remain able to use all the great Revolut features you know and love.
We will keep you updated as soon as we know more. Either way, you can rest assured we have you covered.
Where do we go from here?
At this point in time, we are waiting to see how trade talks between the UK and Europe play out. We will be following these very carefully, and will be sure to update you as soon as something happens.
In the meantime, we will continue engaging with both the UK and European regulators, industry representatives and our fellow e-money and payment services providers to ensure the best outcome for all our customers.
No matter the outcome of this next phase of Brexit, we will put your interests first.
As always, keep an eye on the blog, and your inbox, for more updates.
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