If you do not agree to the changes proposed by Revolut, you should sell your shares and transfer money by the end of the year. If you don't, your trading account will be frozen
Revolut informs clients that due to Brexit, from January 1, 2020, its British company Revolut Trading Limited will no longer be able to operate in the European Union. This means that Polish fintech customers who use its application to buy and sell shares on the American stock exchange lose the protection previously provided by EU regulations. Therefore, in the event of a complaint, they will not be able to complain about Revolut to the British equivalent of the Financial Ombudsman or obtain compensation under European regulations.
Revolut reminds that the stock investment service is provided in cooperation with the DriveWealth brokerage house in the USA. Therefore, the new rules for the purchase and sale of shares stipulate that from January 1, 2020, complaints and claims may be submitted to the American organization Securities Investor Protection Corporation, which has been dealing with protection of the investment market since 1970. SIPC provides investors with guarantees of up to $ 500,000.
British fintech leaves customers to decide whether they agree to change the rules or not. If so, Revolut will ask them in early November to download the new version of the application and confirm in it that they still want to use the investment platform and that they are aware that they no longer benefit from any collateral and compensation guaranteed by the European Union. Then they have to reckon with the fact that in case of trouble, they will have to pursue their rights before the American organization that protects customers.
If, on the other hand, you do not agree to the change of the rules, Revolut asks you to sell the shares and transfer the funds. You can do this by December 31, 2020. Fintech reminds you that this may have tax consequences. If you don't, your trading account will be frozen and you won't be able to access it. Then it will be necessary to contact the customer service office.