Advertisement
If you have a new account but are having problems posting or verifying your account, please email Niamh on [email protected] for help. Thanks :)
New AMA with a US police officer (he's back!). You can ask your questions here

Revolut and Brexit

  • 29-10-2020 5:29pm
    #1
    Registered Users Posts: 3,334 ✭✭✭ buyer95


    Hi guys,
    Long story short I started trading last March at the very start of the first Lockdown. At the time DeGiro were not taking new clients so I decided to go for revolut. The good news is that I am up a handsome amount from when I first invested. However today I received a rather disconcerting email from Revolut. Essentially what I took from the long winded email (which I have pasted below) is that revolut trading is no longer able to operate in the EU. Is anyone else in the same boat and wondering what to do next? I am wondering if it is possible to move my revolut trading portfolio to another company? Any and all advice is greatly appreciated

    '
    As you know, the UK will formally leave the EU after 31 December 2020. As a result, our trading company, Revolut Trading Limited (RTL), will no longer be able to passport its services across the EEA from 1 January 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. You can, however, choose to continue trading with RTL from 1 January 2021 if you are comfortable with how the following changes affect you, so please do read on.

    Regulatory Protection - You will no longer have the benefit of EU regulatory protection but you will continue to benefit from UK consumer protection laws or regulations that may apply to the trading service.

    Compensation Schemes - Don’t worry, your investments will continue to be held by DriveWealth LLC and protected by the Securities Investor Protection Corporation (SIPC) in the US.

    What do I need to do?
    You have until 31 December 2020 to decide what to do next. We will continue to update you via the Revolut App, email and our Help centre page with relevant information.

    You have two choices:

    Choice 1: To continue Trading with RTL, from early November you can download the latest version of the Revolut App and confirm via the Revolut App that from 1 January 2021:

    - You are trading with RTL at your own initiative

    - You are trading with RTL on the basis of an ongoing relationship

    - You have been made aware that the trading service is not provided by an investment entity authorised in the EU

    - You are aware that you do not have the benefit of any EU regulatory protections or investor compensation schemes by Trading with RTL

    OR

    Choice 2: You can sell down your positions, transfer your cash from your investment wallet into your payments wallet and then close your trading account by 31 December 2020, should you no longer wish to continue trading with RTL after this date. Normal fees and charges will apply.

    There may be tax implications for you if you have to sell down your positions before closing your account, so you should seek independent tax advice regarding this.


Comments

  • Registered Users Posts: 118 ✭✭ colliemcc


    Also interested in this?


  • Registered Users Posts: 3,334 ✭✭✭ buyer95


    Anyone have any information on this?


  • Moderators, Business & Finance Moderators Posts: 7,834 Mod ✭✭✭✭ Jim2007


    buyer95 wrote: »
    Anyone have any information on this?


    Unless someone has a direct line to Michel Barnier and is willing to share....


    Given that the concentration is still on trade, I'd expect that for at least a part of next year the UK will be just another third country for financial services.


    Financial services is particularly difficult because no one wants firms outside the justification of the market to be in a position to manipulate the single market.


    A further complication is that EEA/CH countries have already stated that if the UK gets a better deal on services, then they expect the same - at the moment their access is almost zero.


  • Registered Users Posts: 3,334 ✭✭✭ buyer95


    Jim2007 wrote: »
    Unless someone has a direct line to Michel Barnier and is willing to share....


    Given that the concentration is still on trade, I'd expect that for at least a part of next year the UK will be just another third country for financial services.


    Financial services is particularly difficult because no one wants firms outside the justification of the market to be in a position to manipulate the single market.


    A further complication is that EEA/CH countries have already stated that if the UK gets a better deal on services, then they expect the same - at the moment their access is almost zero.

    So I should try and move my portfolio to another broker?


  • Registered Users Posts: 194 ✭✭ outonawing


    buyer95 wrote: »
    So I should try and move my portfolio to another broker?

    Don't think that's one of the options.

    Either carry on with the US level of protection or sell up your holdings.


  • Advertisement
  • Registered Users Posts: 726 ✭✭✭ Agent_47


    Basically its reverse solicitation, the client and not Revolut has to make all trade decisions. Revolut cannot advertise or provide the existing clients any information or sales adverts. It really depends how the regulator views the service, I don't think Revolut can add new clients either.

    So where Revolut were flagging a drop in a share, I don't think they can do that under this arrangement. If the regulator decides clients cannot place new trades and must close out of trades pre-Brexit, then it would be best to move the account.


  • Registered Users Posts: 2,241 ✭✭✭ garrettod


    What I find myself wondering, is why haven't they managed to get Irish Regulator approval, as yet?

    I thought that they had stated that process a good year ago, maybe even closer to two years ago, but perhaps I'm wrong? Or, perhaps they've been politely told that they need to do certain things, before they'll be approved by our Regulator?

    I've noticed that Revolut have been recruiting for a number of mid - senior management roles in Ireland, in areas such as risk and wealth manegement, over the last few months.

    Thanks,

    G.



  • Moderators, Business & Finance Moderators Posts: 7,834 Mod ✭✭✭✭ Jim2007


    buyer95 wrote: »
    So I should try and move my portfolio to another broker?


    Probably not for the moment. Have you examined the cost of doing so? A broker asked to move your positions to another broker will charge you a fee for doing so and as it is usually their last chance to make money out of you, it is expensive.


    A better approach would be to start opening your new positions with a broker within the EU and transfer the cash there as you close out positions with your old broker.


    If it does come to a point where clients are forced to move broker, you'll still have plenty of time to do it. And there may well be completion to get your business so that your new broker is willing to swallow some of the costs of moving your positions.


  • Registered Users Posts: 5,440 ✭✭✭ daheff


    garrettod wrote: »
    What I find myself wondering, is why haven't they managed to get Irish Regulator approval, as yet?

    I thought that they had stated that process a good year ago, maybe even closer to two years ago, but perhaps I'm wrong? Or, perhaps they've been politely told that they need to do certain things, before they'll be approved by our Regulator?

    I've noticed that Revolut have been recruiting for a number of mid - senior management roles in Ireland, in areas such as risk and wealth manegement, over the last few months.

    not just the last few months, the last year+. They either don't seem to be able to hire those roles, or are unwilling to pull the trigger at this point.

    That in itself would make me nervous about them. If they can't attract the right senior roles then they have a problem. If they won't hire them, then theres something else happening stopping it (maybe not 100% sure that they will be able to get a banking license?)


  • Registered Users Posts: 3,334 ✭✭✭ buyer95


    Jim2007 wrote: »
    Probably not for the moment. Have you examined the cost of doing so? A broker asked to move your positions to another broker will charge you a fee for doing so and as it is usually their last chance to make money out of you, it is expensive.


    A better approach would be to start opening your new positions with a broker within the EU and transfer the cash there as you close out positions with your old broker.


    If it does come to a point where clients are forced to move broker, you'll still have plenty of time to do it. And there may well be completion to get your business so that your new broker is willing to swallow some of the costs of moving your positions.

    Thanks for the response Jim. The issue is I have some positions such as with Nio which have proved extremely profitable and I don't want to up and sell them to reinvest at a much higher share price. I think I'll play the waiting game for now.


  • Advertisement
  • Registered Users Posts: 1 losch


    I'm in the same situation and not sure what to do. I would like to keep the stock I have as they are profitable but at the same time I am worried that I will have to sell and close the account with RTL anyway so might as well do it now


Advertisement