According to the recently published 25 “technical notices” by authorities, Britons can expect to see a gush in their personal finances in an event of “No Deal” Brexit.
Although British authorities say to take any necessary measures to mitigate the challenges and seize rising opportunities in wake of “No-Deal” Brexit, the published “Technical notes” clearly reflects the picture of the bumpy road ahead.
The technical assessment detailed in published papers covers a wide number of substances including matters of personal finances like the rise in credit card fees, investment challenges and apprehensions about British Pensioners living in cheaper and sunnier EU states.
The increased cost of personal finances in an event of “No-Deal” Brexit stems from the loss of access to EU trade agreements to British financial services. In a bet to get a reciprocal beneficial deal from EU, authorities have chalked-out convenient access transitional services for EU citizens, however, the reciprocal arrangements for Britons living in EU states are waited upon.
Here’s a brief assessment of what No-Deal Brexit could mean for personal finances of Britons.
British firms with current accounts in European banks will be vulnerable to lose access to their accounts provided the firms don’t get register or are not allowed to register with the Financial Conduct Authority within 3 years from the date of Brexit
Similarly, British expats in EU states risks to lose access to their current accounts without a presence of operational and trade guarantee to British Financial firms in EU.
Britons also faces a risk of increased costs and slow processing of credit cards for purchases from the EU.
Just this year, EU put a cap on credit card fees across the union, however, in wake of “No-Deal” Brexit, that cap won’t be applied to payments in Britain. The additional card fees are estimated to cost Britons £ 166m.
This will simply translate into an increase in card payments for UK consumers across the continent and will not be bounded by surcharging ban. British expats living abroad in EU, especially pensioners and Britons shopping online from EU based companies will be most affected by the increase in credit card fees in the wake of “No-Deal” Brexit.
Abdul Aziz Lang
Senior Managing Partner
Gadlang UK Management Consultants