Brexit, Abi: online guide on what changes for payments and investments

What changes for money transfers, such as wire transfers and debits, to and from the UK? What about payments and withdrawals across the Channel? What are the consequences of the United Kingdom's exit from the European Union for the management of its investments and savings? The infographic 'Brexit, the main innovations in 6 points' is dedicated to these aspects in terms of banking and payment services to support citizens in their operations.

Created by the ABI in collaboration with the banks and consumer associations participating in the Simple Transparency project, this new infographic through questions and short answers aims to represent what changes for customers in the management of banking operations, investments and insurance contracts already stipulated after the United Kingdom, starting from 1 January 2021, left the Customs Union and the EU Single Market.

The initiative developed as part of the Simple Transparency project, which involves the creation and dissemination of information and educational tools on issues of interest to customers, has the objective of encouraging the use of banking and financial information by citizens. .

In digital format, the infographic is available online on the ABI website in the dedicated page (this is the link), and is available to the banks and consumer associations that have collaborated in its creation (ACU, Adiconsum, Adoc, Altroconsumo, Asso-Consum, Assoutenti, Consumer House, Consumer Protection Center for Users, Cittadinanzattiva, Codacons, Confconsumatori, Federconsumatori, Consumer League, Consumer Movement, Citizen Defense Movement, U.Di.Con, UNC).

Here are the main contents of the infographic:

1 - Will I be able to make payments and withdrawals in the UK with a card issued by an Italian bank?

Yes, as has happened up to now. If you have a card authorized for an international circuit, you can continue to use it to withdraw from ATMs and make payments in commercial establishments.

2 - To transfer money to the UK, will I continue to use IBAN and make SEPA payments, i.e. wire transfers and direct debits?

Yes, as the UK continues to be part of the Single Euro Payments Area (SEPA). However, you may be required to provide the BIC code in addition to the IBAN and your residential address must necessarily be known to the beneficiaries. In the event of cost changes due to withdrawal, your bank will inform you 60 days in advance, as required by national legislation on the unilateral variation of the contractual conditions.

3 - If I go on holiday to the UK, do I have to bring the pounds?

It is not needed. Italian bank card holders can continue to make payments at any merchant that accepts the card, or withdraw sterling from UK ATMs. Of course, when withdrawing pounds from ATMs, you will have to bear the costs of exchanging currency, as was the case before.

4 - Can I shop from Italy through a UK site?

Yes, but since your purchase today is equivalent to a commercial transaction carried out on the site of a non-EU country, the customs regulations in force in the Union will be applied. In particular, if the goods are of British origin, no duties apply but VAT is payable. If, on the other hand, the goods are of Chinese origin, for example, and have not undergone any further processing or processing in the UK, duties are also applied, according to the EU tariff. It is important to carefully read the terms and conditions of delivery before proceeding with the purchase.

5 - What are the consequences for the operations of my British bank which operated in Italy until 31 December 2020, with or without branches?

If your bank has been authorized to operate on the Italian territory as a third-country intermediary, it can carry out the activities for which it has requested the authorization (limiting itself to the management of existing relationships). Similar rules also apply to the provision of investment services. Furthermore, deposits continue to be protected by an Italian guarantee system and you can access the Financial Banking Arbitrator (ABF).

In the absence of authorization, the bank's activities in Italy were terminated, with the consequent termination of existing relationships.

6 - What are the consequences for Italian underwriters of an insurance contract with a UK insurance company?

The insurance coverage and the amount of the premiums provided for in your contract will not be limited or conditioned as a result of any changes at the company level, planned by your British insurance company to ensure continuity of service in Italy. The effects of Brexit on the contractual relationships between you and your insurance undertaking will also depend on the national law applicable to the contract. For more information, you can contact the British insurance company with which you took out the policy, the intermediary through which you purchased it and IVASS as the insurance authority.

Brexit, Abi: online guide on what changes for payments and investments

| Economics, ITALY |