Because of Brexit, we’re all going to start seeing things change in the coming weeks. I have a feeling we’re going to be feeling a lot more European than we used to! If you’re a Revolut customer, today you’ll have received an email saying your account has moved to Lithuania. Here’s what that’s all about.
Why Is Revolut Moving My Account To Lithuania?
I can totally understand the moment of shock when you see that your account has moved from the UK, right next door, to Lithuania, all the way over there. However, if you think about it, because of Brexit this makes a lot more sense. Revolut has had a base in both the UK and EU, the EU entity, Revolut Payments UAB, is simply based in Lithuania.
This change comes to ensure you and your account is not affected by Brexit. For us Irish-based customers, Revolut hopes this is just a temporary stop off on the way towards the Central Bank of Ireland recognising the online-only “bank” as a proper bank.
Why Do I Need To Do?
For most customers, I doubt there’s much you’ll have to do. One important exception is if you pay and Direct Debits with your Revolut account. If you do, you’ll need to update whoever it is your paying with your new International Bank Account Number (IBAN), the new IBAN starting with LT, replacing your old one starting GB.
If you were receiving payments via Direct Debit, you’ll still receive payments for six months if they’re sent to the old IBAN but they may be subject to additional fees. That’s outside Revolut’s control.
Everything Else You Need To Know
There are a few other bits to consider now that you’re thinking about this.
If you have a specific Revolut Insurance product or just have a query about the general insurance that’s already been migrated to the EU entity too. Your policy number and insurance provider will stay the same. Your travel insurance coverage limits and excess liability will now be shown in € instead of £ and if you were covered for £10,000,000 worth of overseas medical cover, you’re now be covered for €10,000,000. If you’re mid-trip during the migration, your cover won’t be affected. You can view your updated policy in the app.
This is one of the bigger issues if you buy stocks through Revolut and I’m currently working on a bigger article to explain this. Basically, Revolut Trading Limited (RTL), will no longer be able to passport its services across the EEA from 1 January 2021. While this means Revolut can no longer advertise, promote or otherwise provide the trading service to you under EU law after this date, you can keep using it at your own risk.
This means your following rights are impacted:
- Regulatory Protection: After Brexit, although your investments will no longer be protected under EU regulation they will be protected under UK regulation as Revolut will continue to operate as an appointed representative of its UK principal firm which is authorised and regulated by the FCA. This level of protection will at least be equal to the strict requirements under EU regulation
- Compensation Schemes: Your investments will continue to be held by DriveWealth LLC and protected by the Securities Investor Protection Corporation (SIPC) in the US
- The Right to Complain: Under UK regulation, the rules relating to complaints will remain the same after Brexit. Therefore, depending on the circumstances of your complaint, you may be able to refer it to the Financial Ombudsman Service (FOS).
So you can either keeping going as you are or sell down your stocks. Like I said, I’ll be back with more advice soon.