The UK’s Brexit transition period came to an end on 31 December 2020 and the UK-EU Trade and Cooperation Agreement came into effect on 1 January 2021.
We would like to assure all of our individual policyholders and pension scheme trustees who hold an insurance contract with us that, despite the UK leaving the EU, we will continue to meet all of our contractual obligations under their policies. This includes the payment of pensions to our policyholders and funding for the pension schemes. This also includes continuing to administer and provide the benefits of policies to individuals living in a European Economic Area (EEA) country.
Equally, we will continue to meet our obligations under our contractual arrangements with our reinsurers and other third parties.
We understand that a number of banks and building societies are closing UK accounts for people living in the EEA without a UK address. We therefore encourage individual policyholders living in a EEA country who receive their Rothesay pensions into a UK bank account, to check with their bank as soon as possible to see whether they need to take any action.
Last year we wrote to policyholders who may be affected. We enclosed a new bank mandate form for policyholders to complete and return should they need to change banks. If you need a new bank mandate form, please contact us. If you do not have our contact details to hand, please use our Contact page.
In October 2020, the FCA and the PRA jointly published a letter to the banks regarding Brexit preparations after the transition period. This included guidance that if the bank identified customers who will be affected by a reduction or cessation in service provision, it should ensure that they are treated fairly and provide them sufficient notice to seek alternative arrangements in an orderly manner.
Transfer of our ‘Irish Portfolio’
As part of Rothesay’s preparations for Brexit, we concluded that it was necessary to transfer approximately 400 Irish annuity policies (our “Irish Portfolio”) to an Irish insurance company. This transfer was necessary to ensure that payments under the affected policies could continue to be lawfully paid following the end of the Brexit implementation period (31 January to 31 December 2020) agreed with the EU.
Our Irish portfolio was transferred to Monument Life DAC on 7 September 2020.