As you know, the UK will formally leave the EU after 31 December 2020. This will affect a few things which we just need to make you aware of – don't worry though, this doesn't have to interrupt your trading experience too much.
As a result of Brexit, our trading company Revolut Trading Limited (RTL), will no longer be able to passport its services across the EEA from 1 January 2021 as an appointed representative of its UK principal firm, which is authorised and regulated by the Financial Conduct Authority.
This means that RTL will no longer be authorised on behalf of its principal firm to advertise, promote or otherwise provide the trading service to you under EU law after this date. You can, however, choose to continue trading with RTL from 1 January 2021 if you are comfortable with how the following changes affect you – so please do read on.
How will Brexit affect me?
- Regulatory Protection: After Brexit, although your investments will no longer be protected under EU regulation they will be protected under UK regulation as RTL will continue to operate as an appointed representative of its UK principal firm which is authorised and regulated by the FCA. This level of protection will at least be equal to the strict requirements under EU regulation
- Compensation Schemes: Your investments will continue to be held by DriveWealth LLC and protected by the Securities Investor Protection Corporation (SIPC) in the US
- Right to Complain: Under UK regulation, the rules relating to complaints will remain the same after Brexit. Therefore, depending on the circumstances of your complaint, you may be able to refer it to the Financial Ombudsman Service (FOS). For details on our Complaints process, please see Section 6 of RTL’s "Terms of Business” or for general questions visit the FOS’s website: www.financial-ombudsman.org.uk
RTL will continue to operate as an appointed representative of its UK principal firm, and will continue to adhere to the high standards set by the Financial Conduct Authority (FCA), the UK Regulator. Rest assured that the investments you’ve made via the Revolut App will continue to be kept safe and secure after 31 December 2020.
What do I need to do?
You have until 31 December 2020 to decide what to do next. We will continue to update you via the Revolut App, email and our help centre page with relevant information. You have two choices:
Choice 1: To continue Trading with RTL, from early November you can download the latest version of the Revolut App and confirm via the Revolut App that from 1 January 2021:
- You are trading with RTL at your own initiative
- You are trading with RTL on the basis of an ongoing relationship
- You have been made aware that the trading service is not provided by an investment entity authorised in the EU
- You are aware that you do not have the benefit of any EU regulatory protections or investor compensation schemes by trading with RTL
Choice 2: You can sell down your positions, transfer your cash from your investment wallet into your payments wallet and then close your account by 31 December 2020 should you no longer wish to continue trading with RTL after this date. Normal fees and charges will apply.
There may be tax implications for you if you have to sell down your positions before closing your account, so you should seek independent tax advice regarding this.
If you do nothing before January 1st 2021:
As of 1 January 2021, you will not be able to access our trading service - either to continue trading or to close your account - unless you give the required confirmation via the latest Revolut app.
Our future plan
We are currently applying for a license in Ireland which will enable us to provide investment services across the EEA in 2021. We will keep you informed on its progress.
Remember to update your Revolut app
Please ensure that you always have the latest version of the Revolut app downloaded so that you can receive important updates to the trading service.
Regardless of what is happening in the world, we remain committed to providing you the same great trading service. So you can keep investing in over 800 US stocks from as little as $1, commission-free within your monthly allowance.
Of course we hope that you continue to use our trading service. We will continue to update you in-app, via email and our help centre page, so stay tuned for more updates between now and 31 December, 2020. In the meantime if you have any questions please reach out to us via our in-app chat. See you on the other side!
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