Banks Prepare for BrexitThursday, January 31, 2019
Barclays is to move £170bn to Dublin because it “cannot wait any longer” to implement its Brexit contingency plan.
The High Court approved on Wednesday Barclay’s Brexit contingency plans, including transferring assets linked to about 5,000 Barclays customers to Dublin.
The move is welcome by the rest of the financial sector, who is moving assets outside the island. HSBC is moving assets to France, whilst UBS has applied for a German banking licence. Royal Bank of Scotland (RBS) applied to transfer 1/3 of its own assets over to the Netherlands in preparation for Brexit.
The move did not come as a surprise to existing and non-Barclays customers. Many commented under the story on the BBC website . Eltel stated: “So a £trillion (thats £1,000,000,000,000) has left london for the EU and brexit morons are still calling it project fear.”
Others directed their comments at the Government. Mr. Ian R wrote : “Not to mention Mr Rees-Mogg, who also moved his company to the EU so as to completely insulate himself and his assets from any Hard Brexit, which he so fervently supports, whilst telling everyone, do as I say, not as I do…… Can’t blame the Banks for wanting to protect themselves from the UK economy falling off the cliff edge..”.
Barclays will increase their headcount in Ireland by 300 staff. This way they will be able to accommodate their customers after Brexit, even if a no-deal fails to cover financial services contracts rules.
A no-deal Brexit would leave banks without a replacement for EU passporting rights. Those rights currently allow firms to conduct cross-border business across the European bloc.
On the other hand, Lloyds had a more interesting short-term approach on Brexit, axing another 500 jobs. Their communications spokesman claimed this move as part of a £3bn push into digital, as they want to be more competitive against challenger banks. Lloyds has already started the process of setting up European subsidiaries in Berlin, Frankfurt and Luxembourg.
Earlier this month, Barclays was also considering axing or relocating 280 staff from a Leeds call centre. Also, Santander announced shutting approx. one fifth of its branch network with the loss of around 840 jobs.
How does the Barclays bank move affect me?
Barclays moving assets around does not affect you directly. However, Brexit will affect your financial status no matter which lender you bank with. On worse occasions, Brexit will squeeze your income and maybe bill or mortgage payments could be missed.
This is why we urge people to check if they have any PPI on their mortgage, loan or credit card. A claim can take up to 4 months for a resolution. With the PPI deadline in August looming you need to claim before the 29/8. With remunerations of up to 6 digits, our customers are happily surprised! They use the PPI refund to fund holidays, home improvements or even grandchildren’s education.
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