UK and Ireland: Year-end changes to cash and security deadlines and bank levy

10.11.2017

For

29 December 2017

the Clearstream Banking1 customer CET deadlines for the following instructions in the UK and Irish markets will be moved as indicated:

For UK securities against payment transactions with requested settlement date 29 December 2017:

  • Securities deposited in Citibank UK: from 15:20 on value date to 10:00; and
  • Gilts: from 15:40 on value date to 10:00.

For Irish securities against payment transactions in GBP with requested settlement date 29 December 2017:

  • All securities: from 15:20 on value date to 10:00; and

For cash pre-advices and withdrawals of funds:

  • From 18:00 to 10:00 on value date.

In addition, any charges to Clearstream Banking arising from a GBP long balance held on a cash account at Clearstream Banking’s UK cash correspondent at the end of day on 29 December 2017 will be passed on to the Clearstream Banking customer, if such long balance is due to customer instructions not having respected the modified instruction deadlines.

Customers receiving non-pre-advised funds or leaving long balances in GBP on their cash account with Clearstream on 29 December 2017 may be charged a fee of up to 0.17% or equivalent to the bank levy rate applied.

Background

The UK bank levy is an annual charge that was introduced in 2010, effective 1 January 2011, on certain equity and liabilities (termed “chargeable equity and liabilities”) to apply to UK banks and building society groups, foreign banks and banking groups operating in the UK and UK banks in non-banking groups.

The levy is an annual balance sheet charge based on the equity and liabilities reported on the relevant balance sheets at the end of a period of account of the entity or, in the case of a group, of the parent entity.

Impact on customers

On 29 December 2017:

  • The customer deadline for against payment securities instructions for the UK and Irish markets with requested settlement date 29 December 2017 on the UK and Irish domestic markets will be 10:00 on value date. Customer instructions received after the above mentioned deadline will be transmitted to the market for same day settlement and therefore can affect customer cash balances at close of business.
  • The customer deadline for cash pre-advices and payment instructions in GBP will be 10:00 on value date.
  • Non-pre-advised funds may be subject to a charge of up to 0.17% or equivalent to the bank levy rate applied.
  • GBP long cash balances held on customer accounts at close of business on 29 December 2017 may be subject to a pro-rata charge up to 0.17% or equivalent bank levy rate applied.

Customers are encouraged to closely manage their GBP balances on 29 December 2017.

Further information

More specific information is available at http://www.hmrc.gov.uk/.

For further information, customers may contact Clearstream Banking Customer Service or their Relationship Officer.
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1. Clearstream Banking refers collectively to Clearstream Banking S.A., registered office at 42, avenue John F. Kennedy, L-1855 Luxembourg, and registered with the Luxembourg Trade and Companies Register under number B-9248, and Clearstream Banking AG (for Clearstream Banking AG customers using Creation Accounts), registered office at 61, Mergenthalerallee, 65760 Eschborn, Germany and registered in Register B of the Amtsgericht Frankfurt am Main, Germany under number HRB 7500.