Sterling Current Accounts – Brexit Implications
As you know your sterling current account is provided by Allied Irish Banks, p.l.c, London Branch and up until the 31st December 2020 it was covered by the Central Bank of Ireland to conduct regulated activities in the UK, under the EU Passporting Regime.
As the UK is no longer part of the EU, we want to let you know that we have implemented the necessary contingency plans to ensure a continued service after 31st December 2020.
Can I continue to operate my account as normal?
Yes, your account continues to operate as normal. The features and benefits of the account such as access to UK domestic payment schemes still apply.
So what has changed?
There are implications for the protection of deposits in your Sterling Current Account as a result of Brexit.
We have applied to the UK Prudential Regulatory Authority for permission to continue to conduct regulated activity in the UK under a third country banking licence where eligible deposits in your Sterling Current Account are protected by the UK Financial Services Compensation Scheme (FSCS).
While we wait for approval we will comply with the Temporary Permissions Regime (TPR) introduced in the UK to allow EEA based banks, like ourselves to carry out business in the UK.
The main impact for you is in regards to Depositor Protection. Since 11pm on December 31st eligible deposits in your Sterling Current Account are protected by the UK Financial Services Compensation Scheme (FSCS) – previously the Central Bank of Ireland protected these deposits under the EU Deposit Guarantee Schemes Directive (DGSD).
Under the FSCS Scheme, all the eligible deposits you hold at the same institution are combined and the total protection for those eligible deposits is limited to £85,000. For further information on the eligibility criteria for deposits, please visit www.fscs.org.uk.
Previously, under the Central Bank of Ireland’s DGS Scheme, all the eligible deposits you held at one institution were combined and the total protection for those eligible deposits was limited to €100,000.
We have also written to you and provided more detail on the FSCS depositor protection scheme that will apply to your Sterling Current Accounts (NSC-238590)
For more information on the Irish Deposit Guarantee Scheme including eligibility and exclusions, please click here.
For more information on the UK Financial Services Compensation Scheme including eligibility and exclusions, please click here.
For more information on Brexit please click here.