Britons residing in the European Union (EU) may no longer have access to bank account services and businesses in the EU if a non-deal Brexit were to occur. Citing the British government, Reuters reported documents laying out a plan.
If Britain leaves the EU with no deal, though Britons will be able to use their bank cards to withdraw money in EU countries, more than 1 million U.K. citizens that live outside the country may not be able to use U.K. accounts to borrow or make deposits. Insurance contracts like annuities may not be accessible as well, noted Reuters. The government also said banks that offer the services could be impacted if there is no deal.
“This could impact these firms’ ability to continue to service their existing products,” the government said, according to Reuters.
As it stands now, the banks, insurers and fund managers in the U.K. have access to the EU. Without a deal, the financial services companies would have to create operations in the EU or they will be barred from serving those clients and sending out payments, noted the report.
“Leaving the EU without a deal would cause major inconvenience to millions of pensioners, travelers and drivers,” said Hugh Savill, director of regulation at the Association of British Insurers.
Despite the government report, Brexit Secretary Dominic Raab downplayed any impact it will have on U.K. retirees who live in the EU.
“It’s hardly in the interests of southern Spain to do harm to the U.K. pensioners out there,” Raab said, according to Reuters. The report noted that the finance ministry and the Bank of England will provide details in September as to how customers in the U.K. can continue using a settlement house in the EU.