On 31 October 2018, HM Treasury published a draft version of the Payment Accounts (Amendment) (EU Exit) Regulations 2018 together with an explanatory memorandum.
The draft Regulations form part of a series of draft statutory instruments that HM Treasury is publishing as part of its contingency planning for a no-deal Brexit. The statutory instruments are made by HM Treasury in exercise of its powers conferred by the European Union (Withdrawal) Act 2018.
The draft Regulations make amendments to retained EU law related to the Payment Accounts Regulations 2015 to ensure that they continue to operate effectively in the UK once the UK has left the EU, in the event of a no-deal Brexit. The changes for payment account providers and consumers will be minimal.
Specifically the draft Regulations:
- removes references to EU institutions, replacing them with the appropriate UK authority;
- removes the requirement on payment account providers to facilitate cross-border opening of accounts; and
- provide that it will be at the discretion of UK payment account providers whether to continue to offer basic bank accounts to customers legally resident in the EU.