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

News item -

Dear Client,
Following the recent political developments in the UK Parliament, we would like to set out what steps we are taking to prepare for a no-deal Brexit scenario. 
The default position is still that the UK will leave the EU on 31 October at 23:00 GMT.  Even if the Prime Minister requests an extension, there is no guarantee that the other EU countries would agree. Leaving without a deal (or withdrawal agreement) means the UK would immediately exit the customs union and single market.
We will be continuously reviewing political events in the UK and will further update this communication when necessary. 
To clarify the current position we have set out below the implications for both a no-deal or deal scenario.
In the event of a no-deal the UK leaves the EU on exit day and then the temporary permissions regime (TPR) becomes live to enable EU firms to continue to provide products and services to UK clients as if they were authorised in the UK to do so. The TPR runs for a maximum of three years from exit day – but this is a period in which it is expected that all firms in the TPR get their landing slot to become fully authorised in the UK or leave the regime and run-off all UK business; it does not relate to the date on which the UK leaves the EU – this happens on exit day.
In the event of a deal an agreement will be put in place which will determine when the UK leaves the EU. Most aspects of the UK membership of the EU remains in place during the transition period until December 2020 – but the UK will no longer have a vote. The UK will leave the EU based on what is subsequently agreed. 
ABN AMRO 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 both 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.
ABN AMRO is committed to continuing to provide the services and products you need in order to support your on-going financial requirements. As this time we do not require you to take any action and we will keep you fully informed of our preparations. 
For any specific queries, please contact the bank through your normal channels.   
Yours sincerely,

Further Information:

Brexit deal – what does this mean for you?

If the UK and EU conclude a withdrawal agreement before the 31 October 2019, a post-Brexit transition period will run until 31 December 2020 and most EU law will continue to apply to the UK during this period. There will be no changes to the services we offer or the applicable legal frameworks and protections during that time.

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

In a no-deal Brexit, ABN AMRO will lose its existing passporting rights into the UK financial market 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 UK client base post-Brexit. 
We have applied to the UK regulators for ABN AMRO Bank N.V. to become authorised as 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 offices in Europe. This application has been submitted and is currently in the process of being reviewed by the UK regulators.
The UK 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. with the UK regulators, in the event of a no-deal Brexit, it will automatically enter the TPR.  Entry into the TPR will enable the UK Branch and our European offices to continue offering the same products and services to our UK clients post Brexit.  We will update our website if and when ABN AMRO Bank N.V. enters into the TPR.

Corporate & Institutional Banking

ABN AMRO Bank N.V., located in Amsterdam the Netherlands, 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.

Private Banking & Retail Banking

The Retail Banking and Private Banking businesses who service UK clients have been planning for a no-deal Brexit scenario and have applied to enter into the TPR.  For our Private Banking and Retail Banking clients currently residing in the UK, we may need to make some changes to the products and services we currently offer.  Any clients affected by these changes will be contacted directly. 

Commercial Banking

For our Commercial Banking businesses based in the UK, which includes our International Desk, the current products and services offered to clients will continue unchanged. The International Desk provides a range of transactional banking services, credit and overdraft facilities and guarantees to corporate banking clients which will continue unchanged.

FSCS protection

Clients 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 the FSCS website.