Deposits and investments in UK banks after Brexit

Tastebuds

Frequent Poster
Messages
95
If you had a deposit account in the UK, would you take the money out of the country before Brexit?

If you had a Trading Account in a UK broker (i.e: interactive Investor Limited or interactive broker)... would you also take measures pre-brexit?

Cheers
 

EmmDee

Registered User
Messages
198
If you had a deposit account in the UK, would you take the money out of the country before Brexit?

If you had a Trading Account in a UK broker (i.e: interactive Investor Limited or interactive broker)... would you also take measures pre-brexit?

Cheers
On the deposit account - assuming it is with one of the main banks and you're ok with a currency exposure it'll be fine. You might need to check with them whether they have restrictions on offshore depositors (which is essentially what you will become)

Trading account is different. If the broker is making use of the EU passporting rules to offer services to EU nationals, they will lose that. So you need to check with them whether they have an EU compliant license or, if not, what they propose for EU nationals. You may have to move it.

But for both, I don't think you run any systematic risk in the sense that even with a crash out Brexit, the whole system isn't going to fail.
 

Zebedee

Frequent Poster
Messages
88
IG have warned that in the event of no deal I will not be able to continue trading. As EmmDee says the whole system isn’t going to crash. It’s likely that I will have to transfer funds out to an EU regulated platform (which is going to be a bit of a pain and maybe costly). II have been silent. I lobbed in an email so will update if I hear anything.
 

Tastebuds

Frequent Poster
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95
I emailed interactivebrokers and they said that "customers of IBUK are held in custody by Interactive Brokers LLC (United States). In other words, IBUK is not a custodian of assets. The custodian of assets for IBUK is our US-based entity Interactive Brokers LLC"

So, the deposits are not held in a UK bank account and are spread across many international banks (mainly US)

I will also try to contact II and keep you posted

thanks
 

Jim2007

Frequent Poster
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2,105
I emailed interactivebrokers and they said that "customers of IBUK are held in custody by Interactive Brokers LLC (United States). In other words, IBUK is not a custodian of assets. The custodian of assets for IBUK is our US-based entity Interactive Brokers LLC"

So, the deposits are not held in a UK bank account and are spread across many international banks (mainly US)

I will also try to contact II and keep you posted

thanks
I doubt it, I expect that cash balances are held in the UK and assets are held by various nominee companies depending on which market you trade with them. This is usually how it is done. I would suggest you clarify this with them.

You should also be aware that nominee accounts are not designated by custom, but by broker, so should anything go wrong it will take some time before it gets sorted out and you would be in a position to trade the securities. For most investors this would not be a big issue, but for trades it could have serious consequences.
 

mckennittsean

New Member
Messages
1
hi! i stay in romania, but i will come back next year. I need to know more about what is better to do with deposit account in the UK after no agreement will be made beteween uk and UE.
 

Gordon Gekko

Frequent Poster
Messages
3,655
Nobody knows exactly what will happen in terms of Hard/Soft Brexit, but as things stand you should be fine.

The bigger issue is “passporting” which is likely to end (e.g. Romanian branch of UK bank servicing customers in Romania).

But people pitching up in the UK to open an account with Barclays, Main Street should be fine.
 
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