Revolut Trading Limited to no longer passport its services across EEA from Jan 2021
Revolut has informed its customers about changes to its operations related to Brexit.
As a result of Brexit, Revolut Trading Limited (RTL) will no longer be able to passport its services across the EEA from January 1, 2021 as an appointed representative of its UK principal firm, which is authorised and regulated by the Financial Conduct Authority.
This means that RTL will no longer be authorised on behalf of its principal firm to advertise, promote or otherwise provide the trading service to you under EU law after this date. Customers can, however, choose to continue trading with RTL from 1 January 2021 if they are comfortable with how the changes affect them.
- Regulatory Protection – Customers will no longer have the benefit of EU regulatory protection, but they will continue to benefit from UK consumer protection laws or regulations that may apply to the trading service
- Compensation Schemes – Their investments will continue to be held by DriveWealth LLC and protected by the Securities Investor Protection Corporation (SIPC) in the US
- Right to Complain – Depending on the circumstances of their complaint, customers may not be able to refer their complaint to the UK’s Financial Ombudsman Service (FOS) but Revolut says it will still do its best to put things right if customers are unhappy with any aspect of the trading service
RTL will continue to operate as an appointed representative of its UK principal firm, and will continue to adhere to the standards set by the Financial Conduct Authority (FCA), the UK Regulator.
RTL customers have until December 31, 2020 to decide what to do next.
Choice 1: To continue Trading with RTL, from early November traders can download the latest version of the Revolut App and confirm via the Revolut App that from 1 January 2021:
- They are trading with RTL at their own initiative
- They are trading with RTL on the basis of an ongoing relationship
- They have been made aware that the trading service is not provided by an investment entity authorised in the EU
- They are aware that they do not have the benefit of any EU regulatory protections or investor compensation schemes by trading with RTL
OR
Choice 2: They can sell down your positions, transfer their cash from their investment wallet into their payments wallet and then close their account by 31 December 2020 should they no longer wish to continue trading with RTL after this date. Normal fees and charges will apply.
If RTL customers do nothing before January 1, 2021, they will not be able to access RTL’s trading service – either to continue trading or to close their account – unless they give the required confirmation via the latest Revolut app.
Revolut is currently applying for a license in Ireland which will enable it to provide investment services across the EEA in 2021.