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Sterling Current Accounts – Brexit Extension Implications
As you know your Sterling Current Account is provided by Allied Irish Banks, p.l.c, London Branch which is currently authorised by the Central Bank of Ireland to conduct regulated activities in the UK - as such Brexit may have some implications for you. As there has been an extension to Brexit negotiations we want to let you know that Brexit is at the top of our agenda and have implemented the necessary contingency plans to manage a ‘Hard Brexit’ scenario (i.e. where the UK leaves the EU without a deal) and to ensure a continued service after the existing agreed date of 31 October 2019.
One of the potential impacts for you is in regards to Depositor Protection. Currently depositor protection is governed by the EU Deposit Guarantee Schemes Directive (DGSD) however when the UK leave the EU it will no longer be subject to this scheme.
Currently, under the DGSD, the Sterling Current Accounts (NSC-238590) is protected by the Central Bank of Ireland Deposit Guarantee Scheme (DGS). Your Sterling Current Accounts (NSC-238590) will continue to be protected by the Central Bank of Ireland’s DGS until the 31 October 2019 regardless of the outcome of Brexit negotiations.
If there is no agreement between the UK and EU (a Hard Brexit), then post-Brexit any eligible deposits held by AIB’s London Branch will be covered by the UK deposit guarantee scheme - The Financial Services Compensation Scheme (FSCS). For further information on the eligibility criteria for deposits, please visit www.fscs.org.uk.
If an agreement is reached on Brexit (a Soft Brexit), then any eligible deposits held by AIB’s London Branch will continue to be covered by the Central Bank of Ireland’s DGS, but may transfer to the FSCS no later than 31 December 2020.
Currently under the Central Bank of Ireland’s DGS Scheme, all the eligible deposits you hold at one institution are combined and the total protection for those eligible deposits is limited to €100,000.
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.
Once the outcome of Brexit is known, we will write to all customers with more detail on the Depositor Protection Scheme that will apply to your Sterling Current Accounts (NSC-238590).
If you would like to speak with someone, you can call our dedicated helpline on 00353 (1) 7771194 any time between 9am and 5pm, Monday to Friday.