Brexit

What does it mean to you as a Corporates & Institutions customer?

The UK is due to leave the European Union (EU) on 31 October 2019 (in case of a No Deal Brexit) or earlier (in case of a Deal Brexit). Until then, Brexit will have no immediate impact on our Corporates & Institutions customers in relation to the products and services provided by Danske Bank. Regardless of the final outcome of the ongoing negotiations between the UK and the EU on Brexit, we expect to be able to continue to provide our current banking- and investment services to you in, to and from UK.

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On 11 April 2019, the European Council decided to extend the period under Article 50 TEU, so that the UK will leave the EU on 31 October 2019 (in case of a No Deal Brexit) but may decide to leave the EU before then (in case of approval of the EU-UK Withdrawal Agreement).

How is Danske Bank connected to the UK?

Danske Bank is a Nordic bank licensed in Denmark and operating in the UK under our EU banking license (EU passport). We offer banking- and investment services to UK C&I customers either from our UK entities (London Branch and Northern Bank) or as cross-border services from our EU entities, mainly from Denmark, Sweden, Norway, Finland or Ireland. We also provide financial services from UK to our mainly Nordic market customers.

 

Possible Brexit scenarios and what they mean to Danske Bank C&I customers

We have prepared for a number of scenarios to ensure that we are ready to embrace the outcomes whether a deal is negotiated or not. At the moment we see four possible Brexit scenarios as illustrated in red colour in the figure below:

 

 

"Deal Brexit"

On 25 November 2018 the EU and the UK signed a Withdrawal Agreement for the UK’s departure from the EU for the UK’s departure from the EU. The EU UK Withdrawal Agreement allows Danske Bank to continue to serve our customers in, to and from UK as today until end of 2020 (the transition period). The Withdrawal Agreement needs to be approved by member states plus the UK and European parliaments.

Since then, the UK´s House of Commons have voted on and rejected the Withdrawal Agreement three times. In case UK later on decides to accept an amended version of this Agreement, we expect that Danske Bank will continue to offer the same banking- and investment services to our C&I customers as we do today, in, to and from UK. In case we will need additional UK licenses after the end of the transition period, we will prepare for this, so we can continue to serve our customers without disruption to the extent possible.

"No Deal Brexit"

In case UK decides to leave the EU without a deal, Danske Bank expect to be able to continue our current banking- and investment services in and to the UK either via our UK entities (Northern Bank and London Branch), via the UK Temporary Permissions Regime or or as services exempt from UK regulation.

Depending on the final outcome of the EU-UK negotiations, we may face restrictions on certain services provided from our UK entities to customers in EU. If so, Danske Bank expect to be able to continue to provide the same banking- and investment services to EU C&I customers from one of our EU entities.

"Soft Brexit"

In case UK decides (e.g. via application for EEA membership) to renegotiate the Brexit terms into a form that will allow UK to continue its current access to the EU internal market for financial services, Danske Bank will continue to offer banking- and investment services in, to and from the UK under our EU-passport as today.

"No Brexit"

In case UK decides (e.g. via a new referendum) to stay in the EU, Danske Bank will continue to offer banking- and investment services in, to and from the UK under our EU-passport as today.

We will keep you updated

Danske Bank is closely monitoring the situation and we will provide you with as much notice as possible should any changes be required. If you have any questions, please do not hesitate to reach out to us.

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Brexit FAQs

What does Brexit mean? 

“Brexit” is the abbreviation used to describe the UK’s exit from the European Union (EU). The UK voted to leave the EU following a referendum in June 2016. In March 2017, the UK Government started the process of leaving the EU by triggering Article 50 of the Treaty on European Union. The UK is expected to remain a member of the EU until 31 October 2019 (in case of a No Deal Brexit) but may decide to leave before then (in case of a Deal Brexit). There should be no immediate impact on your everyday banking services.

What is article 50?

Article 50 of the Treaty on European Union is a provision in law which sets out how a Member State can leave the EU.

What is the Withdrawal Agreement?

In November 2018, the EU and UK signed a Withdrawal Agreement on the UK’s departure from the EU, including a transition period until 31 December 2020. They have also agreed a top level political agreement on the future UK-EU relationship which is not legally binding at this stage.

What happens next?

The Withdrawal Agreement now needs be approved by member states and the UK & European Parliaments. If approved, it is expected that the full future EU-UK deal, including for financial services will be worked through during the transition period held under the Withdrawal Agreement.

What does it mean for me as a customer?

Nothing has changed as a result of the announcement. There will be no immediate impact on your everyday banking services.

The UK is expected to remain a member of the EU until31 October 2019 (in case of a No Deal Brexit) but may decide to leave before then (in case of a Deal Brexit)  and the transition period that then follows should be on the same terms we have today.

What is the transition period?

IIt is a period of time set in the Withdrawal Agreement, to take place between signing of the EU-UK Withdrawal Agreement and and 31 December 2020 to allow businesses and others to prepare for the moment when the new post-Brexit rules between the UK and the EU begin.

What is EU passporting?

EU passporting allows us as a bank to sell our financial services to customers in all EU countries, so that it’s as easy for us to lend to a customer in another EU country as it is to lend to a customer in Copenhagen. It also means that our UK entities (Northern bank and London Branch) can sell their financial services in the UK as well as into EU countries.

Why will EU passporting be removed when the UK leave the EU?

Passporting is intrinsic to the EU Single Market and will not be available to the UK in case of a No Deal Brexit.

How will Danske Bank operate in the UK without EU passporting in case of a Hard Brexit?

We provide banking- and investment services to our UK C&I clients, either via our UK entities (London branch and Northern Bank) or as cross-border services from our EU entities, mainly from Denmark, Sweden, Norway, Finland or Ireland. We currently offer these services under our EU passport, but have prepared for necessary re-licensing to ensure continued access to offer services to our UK C&I clients also in case of a No Deal Brexit.

Amongst other things, we have applied for UK license for our London Branch acting as Third country incoming branch of Danske Bank. The UK Prudential Regulation Authority and the UK Financial Conduct Authority are currently processing our application jointly with similar applications from other EU27 banks. This will allow us to continue our current UK Services to our clients on an uninterrupted basis.  Until we receive our UK license, we will be able to continue our current UK Services during the next three years under the UK temporary permissions regime.

Consequently, Dansk Bank will be able to continue to offer banking- and investment services to our UK C&I clients also after Brexit.

What is the UK temporary permissions regime?

The UK Government have proposed a Temporary Permissions Regime, which in case of a Hard Brexit with effect as from 31 October 2019 will allow existing providers of financial services from EU27 into the UK on the basis of EU passporting to continue such activities for an interim period until October 2022.