Brexit - ABN AMRO Bank N.V., UK Branch

News item -

This update is for clients of ABN AMRO Bank N.V., UK Branch. Clients of ABN AMRO Clearing Bank N.V., London Branch and ABN AMRO Asset Based Finance N. V., UK Branch (Commercial Finance & Leasing) should refer to the relevant websites, listed at the bottom of the page for the most up-to-date information:

Brexit – latest update

Following discussions between the UK and the EU in Brussels late last night, it is clear that Brexit will not happen on 29 March 2019.  If no deal is agreed between the UK and the EU by 29 March 2019, the UK will leave the EU on 12 April 2019.  If a deal is agreed by this date, the UK will leave the EU on 22 May 2019.
Although it is clear that Brexit will no longer happen on 29 March 2019, a lot remains uncertain.  Discussions between the UK parliament and the EU are still on-going and what the relationship between the UK and EU will look like post 12 April 2019 is unclear.
ABN AMRO Bank N.V., UK Branch has been planning for all the uncertainties surrounding Brexit to be well placed to support you as the UK exits the EU.  As a European bank, headquartered in Amsterdam with a primary focus on the Netherlands and with selective operations internationally in chosen areas of expertise, we have the resources and infrastructure in place to ensure the continuity of our services in Europe and beyond, whatever the outcome of the UK - EU negotiations. We are in regular dialogue with our UK and EU Regulators to discuss our preparedness for all potential Brexit scenarios and will continue to keep them updated on our contingency plans.

Brexit deal – what does this mean for you?

If the UK and EU conclude a withdrawal agreement before the 29 March 2019, a post-Brexit transition period will run for two years from 12 April 2019 and most EU law will continue to apply to the UK during this period.

No-deal Brexit – what does this mean for you?

In a no-deal Brexit, ABN AMRO Bank N.V., UK Branch will lose its existing passporting rights and we will no longer be able to conduct regulated business in the UK without the appropriate local authorisations. Our focus has been to secure these authorisations from the UK regulators with approval from the ECB so that we can continue to provide financial services to our client base post-Brexit. 
We have applied to the UK regulator for ABN AMRO Bank N.V., UK Branch to become a third country branch as the UK will no longer be a member of the European Union. This will allow us to continue providing services from our UK Branch and also to UK clients from our Head Office in Amsterdam. This application has been received and is currently in the process of being reviewed.
The UK Government has introduced a Temporary Permissions Regime (TPR) for inbound passporting EEA firms and funds that will lose their passporting rights to operate in the UK in the event of a no-deal Brexit.  The TPR will allow EEA firms to continue to operate in the UK for up to three years whilst they obtain permanent UK licenses.
As we have lodged a third country branch application for ABN AMRO Bank N.V., UK Branch with the UK Regulator, in the event of a no-deal Brexit, the UK Branch will automatically be placed into the TPR.  Entry into the TPR will enable the UK Branch and head office in Amsterdam to continue offering the same products and services to our UK clients post Brexit.  We will update our website in the event that ABN AMRO Bank N.V., UK Branch enters into the TPR.

Corporate and Institutional Clients

ABN AMRO Bank N.V. is the global booking hub for Global Markets and Corporate & Institutional Banking (CIB) including the UK activities. For CIB clients there will be no change of legal entity or to the current booking models and there will be no additional KYC requirements. Our product offering will remain the same.

Commercial Banking

For our Commercial Banking businesses based in the UK, which includes our International Desk business line, the current services offered to clients will continue unchanged.
For the International Desk, the business is regulated by the PRA and will be subject to the third Country Branch license applied for by ABN AMRO Bank N.V., UK Branch. The International Desk provides a range of transactional banking services, credit overdraft facilities and guarantees to corporate banking clients with a link to ABN AMRO.

FSCS protection

Clients of the International Desk that hold eligible UK deposits will become entitled to certain statutory protections under the UK’s Financial Services Compensation Scheme (FSCS). We will publish further information about this, and any changes that may occur to any existing deposit guarantee protection that may apply to you on our website on exit day.  
For more information, please refer to FSCS

Changes to client money and custody assets in insolvency

You should be aware that the regulation of client money and custody assets in insolvency will change.   Currently the Dutch regulators are responsible for overseeing how we protect any client money and custody assets we hold for you from insolvency and that we return these assets to you as swiftly as possible in an insolvency event. Following a no-deal Brexit, once we enter into the TPR, the FCA will become the relevant regulator for the protection of client money and custody assets in respect of business carried on in the UK.
The rules in the UK are broadly the same as the rules in the Netherlands so whilst we are in the TPR, we will be permitted to continue to comply with the requirements of the Dutch regulator rather than the UK regulator on a ‘substituted compliance’ basis.  This means that in the unlikely event that the UK branch should fail whilst in the TPR, the insolvency may be administered by the laws of The Netherlands rather than the UK and any client money or custody assets we hold for you will potentially be treated differently to money or assets belonging to other customers of the firm in the insolvency.   We will provide you with more information about this prior to exit 
For specific queries, please contact your ABN AMRO relationship manager who will engage with the appropriate subject matter expert and come back to you.

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