Brexit: information for the banking and payment sectors in the UK

On 7 March 2019, the UK’s application to remain in the geographical scope of Single Euro Payments Area (SEPA) schemes was approved. This means that Euro SEPA payments can continue to be made through existing arrangements.

You should read this page alongside our information for all firms on preparing your firm for Brexit. Banks conducting investment banking business should also consider our information for participants in the wholesale markets operating in the UK.

Servicing your EEA customers in a no-deal scenario

If you have customers in the EEA, you need to decide on your approach to servicing your existing contracts with them. You should take the steps available to you to continue to service customers in accordance with local law and national regulators’ expectations.  We are clear that firms’ decisions need to be guided by what is the right outcome for their customers.   In many cases, it would be a poor outcome for the consumer for you suddenly to stop servicing them.

Safeguarded funds

If you decide not to continue business in the EEA after Brexit, you should communicate this clearly to your customers and ensure that any customer funds are returned. Where customer funds are held in safeguarding accounts in foreign credit institutions, arrangements should be in place to ensure customers will continue to be able to claim their funds, where necessary.

Access to payment systems

UK Finance’s application for the UK to maintain participation in SEPA schemes after the UK’s exit from the EU was approved on 7 March 2019. This means that UK Payment Service Providers can continue to send and receive Euro payments within SEPA schemes.

Read the decision from the European Payments Council (EPC).

On 2 September, the EPC published a statement on the operational implications of a no-deal Brexit for SEPA transactions involving a UK-based SEPA participant.