The budding economic crises in a number of emerging countries, like Turkey and Argentina, illustrate that a sudden tightening of financial conditions constitutes one of the major risks to financial stability. Financial conditions in the developed countries have remained accommodative to...Read more
The expiry of the Brexit transitional period at the end of 2020 may mean changes in the services provided to you by UK financial institutions. For example, UK banks can no longer provide services from the UK such as taking or holding deposits (saving and payment accounts) to retail customers in the Netherlands after the end of the transitional period. The purpose of the laws and regulations preventing this is to protect retail customers. Services to specific groups of professional customers (professional market parties) can be continued, however. Recently, we published a factsheet for UK financial institutions specifying which cross-border financial services provided by UK institutions to customers in the Netherlands are still allowed/no longer allowed from 2021, after the end of the transitional period.
Many UK financial institutions – including UK banks –have taken measures to be allowed to continue providing services to customers in the Netherlands (and elsewhere in the EU) after the end of the transitional period. One of the options for UK banks to continue serving customers in the EU/the Netherlands is to transfer customers to new or existing offices in the EU. A number of UK banks have therefore set up European subsidiaries or expanded the activities of existing subsidiaries due to Brexit. However, the expiry of the transitional period at the end of this year may also prompt a UK financial institution to decide to terminate customer services in the Netherlands and elsewhere in the EU. Unfortunately this is a consequence of Brexit. When there are changes in customer relationships, UK financial institutions must communicate these to their customers in the Netherlands in a clear and timely manner. We have discussed the importance of this with the UK supervisory authorities.
If you have any questions about the impact of Brexit on the services provided to you by a UK financial institution, or what alternative options exist, we advise you to contact your UK service provider. For further information about lending – including mortgage loans – by UK banks to retail customers in the Netherlands, please refer to the information published by the AFM.