Brexit: Expats are losing banking options
Luxembourg, 7 December 2020 – In view of the likely imminent no-deal Brexit, many British expats are already having their bank accounts cut off. Several companies and institutions are assisting their employees in solving this problem by using international service providers – frequently working out of Luxembourg. “In the financial centre of Luxembourg, the conditions are ideal for providing expats in and from all regions of the world with banking services“, explained Sabine Said, Executive Vice President of Moventum S.C.A.
Background information: It is complex, expensive and lengthy for UK banks to apply for and obtain new licences in all EU Member States – a major problem for employees posted abroad. This affects not only credit cards and current accounts, but also pension provisions or private investments. Brexit is in fact an impressive example of just how important such prudence can turn out to be: between August and September 2020, Lloyds, one of the largest UK banking groups, notified more than 13,000 customers them that their business relationship had been terminated. This mainly affects British citizens living in Italy, Ireland, Portugal, the Netherlands, Slovakia and Germany. Should a hard Brexit indeed become reality, significantly more customers in other EU Member States would be affected. “Since many of the 27 Member States have provisions that are differing in larger or smaller details, it is a bureaucratic nightmare for banks,” added Said. It would therefore be complex, expensive and time-consuming for British banks to continue to serve these customers.
“While it is relatively easy to change bank accounts and to apply for new credit cards, it is much more difficult and costly to restructure entire pension plans and invested funds,” Said continued. Expatriates who frequently change their place of employment will not often have the time and leisure to familiarise themselves anew with the investment conditions of another country. Luxembourg’s high level of internationality then offers itself as an optimal basis for individual investments.
This is also evident, for example, in the regulation of fund products, which are an essential component of the investment strategy for many expats. After the USA, Luxembourg is the most important centre for fund issues; 98 of 100 of the world’s largest asset managers have launched products in Luxembourg. Particularly institutional clients prefer the use of Luxembourg-based custody solutions just as much as Luxembourg-based product solutions. Luxembourg offers optimal conditions ranging from tax deferral effects to security via strict CSSF regulation and vibrant multiculturalism. Moventum serves investors from 124 countries, is multilingual and maintains custody accounts in various currencies, including Euro to British Pound, US Dollar and Swiss Franc.
Additional information is available at www.moventum.lu.
As an independent financial service partner, Moventum S.C.A. is specifically addressing financial service providers such as financial advisors, asset managers, institutional investors, and NGOs. Its services in asset management and asset building include a web-based securities investment platform focusing on funds, relieving financial advisors of administrative tasks, and integrating custody and account management for individual investors. Investment management tools, regulatory-compliant reporting and individual securities services are also part of the full-service range. Standardised fund asset management service with a sustainable, successful track record for the relevant risk/reward profiles complements the offering. The Moventum Group also enables institutional investors to outsource securities processing in its entirety. The MoventumOffice investment platform offers access to more than 9,000 investment products including funds and ETFs from more than 400 investment firms, including the use of analysis, reporting and support tools.
Moventum Asset Management S.A. (Moventum AM) is a wholly owned subsidiary of Moventum S.C.A. The management company, in which Moventum’s asset management expertise has been concentrated since the beginning of 2019, manages Moventum’s own funds and individual mandates as part of its asset management portfolios.
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