Since 1995, Triodos Bank has operated in the UK under a ‘passporting’ regime made possible by European Union (EU) agreements. Under this passporting arrangement a banking licence has been issued and supervised by the Dutch Central Bank (De Nederlandsche Bank) and been subject to limited regulation by the UK Financial Conduct Authority (FCA) and Prudential Regulation Authority (PRA).
Like all other European banks, Triodos Bank has been working closely with the regulators for the past 18 months to prepare for the implications of the UK’s expected withdrawal from the EU. When the UK leaves the EU, the passporting arrangement will no longer cover the Triodos Bank UK banking activities.
A legal transfer of the business of the UK branch of Triodos Bank NV to Triodos Bank UK Ltd has been approved by the UK High Court of Justice using a Part VII transfer mechanism under the Financial Services and Markets Act 2000. The Part VII will enable Triodos Bank to transfer existing contractual relationships without the need for ‘repapering’ (re-issuing) every contract.
Personal customers and eligible organisations have previously been protected by the Dutch Deposit Guarantee Scheme (DGS). Under the new subsidiary arrangement, Triodos Bank UK Ltd will move to cover from the UK’s Financial Services Compensation Scheme (FSCS) instead.The FSCS is the UK's compensation fund of last resort providing most customers, including private individuals and small businesses, with assurance that up to £85,000 of money deposited will be protected if the bank becomes unable to repay money deposited with it. FSCS does not apply to Triodos Crowdfunding holdings and Triodos investment products.
Triodos Bank NV is headquartered in the Netherlands and banking activities in Germany, Spain, Belgium, the Netherlands, and France.
Triodos Bank has been working with regulators to ensure the necessary regulatory and legal frameworks are in place to continue providing services to UK customers. The focus of these conversations has been a desire to continue to support sustainable banking in the UK and individuals who want to embrace a more conscious approach to banking and finance.
In preparation for the subsidiary Triodos Bank has been granted a full banking licence for Triodos Bank UK Ltd. Triodos Bank UK Ltd will be authorised by the Prudential Regulation Authority (PRA) and regulated by the Financial Conduct Authority (FCA) and the PRA under new registration number 817008.
The terms of the Part VII Transfer are set out in full in a banking business transfer scheme document (the Scheme). The Scheme Document in full and an Explanatory Statement setting out the terms of the Scheme are available at: www.triodos.co.uk/legaltransfer.
We have written to all our customers to confirm the transfer will take effect and to confirm any changes to Terms & Conditions from 1 May 2019.
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About Triodos Bank
Founded in 1980, Triodos Bank has become a reference point for sustainable banking globally. Triodos Bank is an independent bank that promotes sustainable and transparent banking. It does not see any conflict between a focus on people, the planet and a good financial return. Instead it believes that they reinforce each other in the long-term.
Triodos Bank has banking activities in the Netherlands, Belgium, the UK, Spain, Germany and France as well as Investment Management activities based in the Netherlands and investing globally. Triodos Bank co-founded the Global Alliance for Banking on Values, a network of 54 sustainable banks. Together these banks want to grow sustainable banking and its impact on the real economy substantially.
Triodos Bank N.V. (incorporated under the laws of the Netherlands with limited liability, registered in England and Wales BR3012) is authorised by the Dutch Central Bank and subject to limited regulation by the Financial Conduct Authority and Prudential Regulation Authority. Details about the extent of our regulation by the Financial Conduct Authority and Prudential Regulation Authority are available from us on request.
Most recent company information is available on Triodos Bank’s website: www.triodos.com