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

For

31 December 2013

the Clearstream Banking¹ customer 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 31 December 2013:
  
  
  • Securities deposited in Citibank UK: from 14:25 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 31 December 2013:
  
  
  • All securities: from 14:25 on value date to 10:00;

and

• For cash pre-advices and withdrawals of funds:
  
  
  • From 16:00 to 10:00 on value date.

This follows our Announcement A13172, dated 19 November 2013.

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 31 December 2013 will be passed on to the Clearstream Banking customer.

Customers receiving non-pre-advised funds or leaving long balances in GBP on their cash account with Clearstream on 31 December 2013 may be charged a fee of up to 0.13% 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 to customers

On 31 December 2013:

• The customer deadline for against payment securities instructions for the UK and Irish markets with requested settlement date 31 December 2013 on the UK and Irish domestic markets will be 10:00 on value date. Instructions transmitted after the above CBL deadline but for the same requested settlement date may still settle on the requested settlement date 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 0.13% or equivalent to the bank levy rate applied.
  
• GBP long cash balances held on customers’ accounts at close of business on 31 December 2013 may be subject to a pro-rata charge up to 0.13% or equivalent bank levy rate applied.

Customers are encouraged to closely manage their GBP balances on 31 December 2013.

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 to Clearstream Banking S.A., registered office at 42, avenue John F. Kennedy, L-1855 Luxembourg, and registered with the Luxembourg Register of Commerce and Companies under number B-9248 (CBL).