What does it mean to you as a Corporates & Institutions customer?
The UK formally left the European Union (EU) on 31 January 2020. This will be followed by a transition period, which will last until 31 December 2020. During this transition period, all EU rules and regulations will continue to apply to the UK. Therefore, during the transition period, Danske Bank, C&I will continue to offer the same banking- and investment services to our C&I customers as we do today, in, to and from the UK.
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.
What will happen after Brexit Day (31 January 2020)?
After Brexit Day, the EU and the UK will start negotiating the details of their future relationship. We are currently awaiting the outcome of these negotiations. 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.
Consequently, Danske Bank C&I expect to continue its current operations into UK also after Brexit, in the short term under the EU-UK Withdrawal Agreement, and in the longer term either under a new wholesale banking license for our London branch or as cross-border services offered under wholesale market access rules available under applicable UK regulation.
Do we still risk a “No Deal” Brexit in the future?
In case the current transition period ends without a deal on the future EU and UK relationship as regards financial services, we may face a “No Deal” Brexit as from 1st January 2021.
If so, C&I 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 a UK temporary permissions regime or as services exempt from UK regulation. If we may face restrictions on certain services provided from our UK entities to customers in EU, C&I 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.