There is still a lot of uncertainty around how the UK will leave the EU. With limited progress so far this year, the possibility of a Hard Brexit, in which the UK leaves the EU without formalising a withdrawal agreement, is becoming a more realistic outcome.
Many business owners are concerned about the impact a Hard Brexit could have on their businesses and the third-party providers they rely on. Here at Valitor, we’ve been preparing for every eventuality, to ensure we are able to deliver uninterrupted services and continue to provide our customers with continued visibility over all their transactions.
What would a Hard Brexit mean for Valitor?
Valitor and its services will remain unaffected in the event of a Hard Brexit. This is because the Valitor Group provides its payment services within the UK in two ways. The first is through a UK-authorised e-money institution (Valitor Limited) and secondly, via an Iceland based firm (Valitor hf.) which is able to operate within the UK market through the FCA’s passporting regulations.
Although the passporting regime will come to an end when the UK leaves the EU, the UK government has introduced legislation for a temporary permissions regime (TPR). This will allow Valitor hf. to continue to provide the services previously covered by the passporting rules.
The TPR is currently set to run until 29th March 2020 and may yet be extended further. However, Valitor hf. is unlikely to rely on the regime for the full duration. Instead, it will apply for full UK authorisation when the application window opens.
This approach means that the Valitor Group will continue to provide uninterrupted services throughout the UK, EU and European Economic Area (EEA) via existing legislation and the TPR, when it comes into force.
What are the next steps?
Valitor hf. will notify the regulator of its intention to enter the TPR in the event of a Hard Brexit and begin preparations for applying for full UK authorisation. We will also be working closely with our business partners to ensure that we continue to provide seamless payment services for all our customers.
March 28, 2019